How long is a rolling reserve held?
Typically 5% to 10% of processing volume held for 90 to 180 days, released on a rolling basis as each tranche matures. It is your money, delayed rather than taken, but it is not available when you need it.
A rolling reserve withholds a percentage of each day’s settlement and releases it a fixed period later. Once it matures you receive a release every day alongside your settlement, so the balance held stays roughly constant rather than growing forever.
The arithmetic is worth doing before you sign. At $100,000 a month with a 10% reserve held for 180 days, roughly $60,000 of your money is permanently in the acquirer’s hands while the account is open. That is not a fee, but it is working capital you do not have.
Three variants exist and they are not equivalent:
- Rolling — a percentage of each day, released after the hold period. The most common.
- Upfront — a lump sum before you start, usually refunded when the account closes cleanly.
- Capped — a rolling reserve that stops accruing once it reaches an agreed ceiling. The best of the three if you can get it, because your exposure is bounded.
The reserve is more negotiable than the rate, particularly once you have six months of clean history with that acquirer. Ask about a cap and a review date at the point of signing rather than afterwards.