Rolling Reserve
Merchant Account Glossary 
R Rolling Reserve
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.
The Merchant Council has additional information on merchant account rolling reserves here:
On November 8, 2009 Michael said:
What would or could be the highest percentage kept for a rolling reserve?On November 8, 2009 Ben said:
Hello Michael,There is no set amount for rolling reserves. The amount held in a reserve is subject to an individual acquirer's risk guidelines and will vary from one institution to the next.
The amount of a reserve is also dependent on the business to which it is being applied. Higher risk merchants will often have a higher reserve percentage.
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