Rolling Reserve is a mechanism used by banks and payment systems to manage risks associated with refunds and chargebacks. Under this system, a portion of the funds received by the seller is held in reserve for a certain period of time. This period varies depending on the terms of the contract and can significantly affect the company's cash flow. In this article, we will look at how long it takes for funds to be returned from the Rolling Reserve and what this process depends on.
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Standard reservation periods In most cases, funds are held in a rolling reserve for a period of 90 to 180 days. This period is chosen by banks and payment systems to allow sufficient time to process possible returns and resolve disputes. For example, if a buyer disputes a transaction through a chargeback, the bank must be able to use the reserved funds to refund the customer.
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Factors affecting refund times

Despite the existence of standard terms, the length of time funds are held may vary depending on several factors:

Business sector:
Some sectors, such as e-commerce, tourism, or online services, may be considered riskier, which may result in longer reservation periods.

Transaction history and seller reputation:
Companies with a positive transaction history, low chargeback rates, and high customer service ratings may receive shorter reservation periods.

Contract terms:
The terms specified in the agreement between the seller and the payment system or bank determine the duration of the funds reservation. These terms may be discussed and adjusted based on mutual agreement.

Transaction type:
Different types of transactions may require different reservation periods. For example, prepayments for goods or services that will be provided over a long period of time may be subject to longer reservations.
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Possible delays

In some cases, refunds from the Rolling Reserve may take longer than expected. Delays may be caused by the following reasons:

Additional checks:
If a bank or payment system detects suspicious transactions or suspected fraud, they may conduct additional checks, which increases the reservation period.

Breach of contract:
If the seller breaches the terms of the contract, this may result in a delay in the refund or an increase in the percentage of funds withheld.

Technical issues:
Delays may be due to technical issues on the part of the bank or payment system.
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How can I speed up the return process?
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In order to minimize possible delays and speed up the process of refunding funds from the Rolling Reserve, we recommend:
Carefully reviewing the terms and conditions of your agreement with the payment system or bank.
Maintaining a high level of customer service, which will help reduce the number of returns and chargebacks.
Promptly providing all necessary documents and information upon request from the bank or payment system.

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The length of time it takes to get a refund from the Rolling Reserve depends on a bunch of stuff, like the contract terms, the industry, and your transaction history. Most of the time, it takes between 90 and 180 days, but it can vary depending on the situation. It is important to understand the terms of the reserve and be prepared for possible delays in order to effectively manage your business's cash flow.