What it means for a research store
A typical reserve might hold 5–10% of each day’s volume for 90 to 180 days; each day’s held amount is released when its period ends, so the reserve “rolls”. Other forms include a fixed up-front reserve and a capped reserve that stops growing at a set amount.
Reserves are common on high-risk merchant accounts and can be added to any account after a review, often without much notice. They reduce working capital at exactly the moment a store is growing, so forecast them: model cash flow with the reserve in place, not only the processing rate.
Read the contract for the percentage, the hold period, the release schedule and what happens to reserved funds if the account is closed. A dispute rate kept well below network thresholds is the most reliable way to negotiate a reserve down over time.
Related guides
Updated September 25, 2026. General information for merchants, not legal, tax or financial advice. This glossary does not describe the use of any compound in people.
