A rolling reserve is an account that is established by a processor, acquiring bank, or merchant service provider on behalf of a merchant where a percentage of gross credit card sales are routed and held for a pre-determined amount of time. The funds amassed in a rolling reserves are held as protection for the provider against chargebacks and fraud.
A rolling reserve is used by merchant service providers to lower the risk associated with an otherwise unacceptable merchant. Rolling reserves usually carry additional monthly maintenance fees.
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Credit Card Processing Terms
