Payments
Rolling reserve
Updated
A rolling reserve is a share of each day's sales that a payment provider holds back for a set period to cover future refunds and chargebacks, then releases.
Providers hold reserves when they see risk: a new business, a jump in volume, a high dispute rate, or products customers pay for long before delivery. In a rolling reserve, a percentage of each day's sales is held and released after a fixed period, so the held amount rolls forward with sales.
Stripe describes a reserve balance as funds it may create on a business's behalf so the account can cover expected refunds or disputes; those funds cannot be paid out or transferred until the hold period ends.
Other forms exist: a fixed reserve holds one set amount, and a minimum reserve keeps the balance above a floor. All of them reduce payouts, which is why delivery times, dispute rates and refund policies matter to cash flow.
Frequently asked questions
- Why did my payment provider put a reserve on my account?
- To cover refunds and chargebacks it expects but cannot yet see, usually because of new or fast-growing volume, a high dispute rate, or long delivery times.
- Do I get reserved money back?
- Yes, once the hold period ends, minus any refunds or chargebacks it was used to cover.
Sources
- Balances and settlement time — Stripe