The Rolling Reserve is a risk management strategy to protect the merchant and the payment service provider of the possible rollbacks (chargeback). Part of the processed money will be retained to cover this potential risk. The payment service provider calculates the amount of Rolling Reserve based on a percentage of each transaction (typically is between 5% and 15%). The rolling reserve is blocked for a defined period of time until it is sent to the merchant’s account.
How does it work?
The Rolling Reserve works as a reserve to rollbacks. The higher the risk of the business, the longer it will remain blocked the Rolling Reserve. Those related to travel, holiday rental, ticket sales to certain shows and businesses often have higher incidence of rollbacks. In these cases the Rolling Reserve ensures that the merchant has sufficient liquidity to take over the amounts required by the owners of the cards. If you do not have rollbacks, the amount for Rolling Reserve is transferred to the merchant within a maximum period of 180 days. The conditions of the Rolling Reserve are usually reviewed after a few months without incidents.
Do you apply the Rolling Reserve to all types of traders?
Currently only we apply the Rolling Reserve new customers of Virtual POS.
Publicado en: Using SetPay