Settlement
Rolling reserve
A percentage of each transaction held by the acquirer for a fixed period (e.g. 10% for 180 days) to cover chargeback risk.
Reserves are the acquirer's protection against future chargebacks, especially for high-risk merchants or those with deferred delivery. They reduce working capital but are negotiable, chargeback history, financials, and processing volume all move the dial.
Related terms
Funds held back by the acquirer (rolling, upfront, or capped) as security against chargeback and fraud risk.
The transfer of funds from the acquirer to the merchant's bank account, net of fees and reserves.
A forced reversal of a card payment initiated by the cardholder's issuing bank.
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