What is a rolling reserve and why does money go into this reserve? A rolling reserve is a financial mechanism used by banks and payment systems to protect against potential risks associated with chargebacks, fraud, or other unforeseen circumstances. Under this mechanism, a certain percentage of incoming payments is temporarily held in a special reserve account. These funds are not available for immediate use and can be returned after a certain period, usually 90 to 180 days, provided that no problems have arisen.
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Money ends up in Rolling Reserve for several reasons:
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High business risk:
Banks and payment systems may consider your business risky if it is associated with an industry that is prone to frequent chargebacks or fraud. Such industries include online commerce, gaming, international transfers, and other areas where the risk of financial loss is high.

New company:
If your company has just started working with a payment system or bank, they may want to play it safe and create a reserve to ensure the reliability of your business.

Frequent returns and disputes:
If your business has already encountered frequent refunds or disputes with customers, the bank may increase the reserve percentage or extend the retention period.
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How to release funds from the Rolling Reserve?
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Funds can be returned from the Rolling Reserve at the end of the specified retention period, provided that no disputes or chargebacks have arisen during this period. Here are a few steps to help you with this process:

Understanding reservation terms:
Carefully review the terms of your agreement with your payment system or bank. Make sure you know exactly how long your funds will be held and the conditions under which they can be released.

Compliance and risk minimization:
To reduce the risk of chargebacks and disputes, ensure a high level of customer service and minimize issues with the quality of goods or services. The fewer disputes you have, the higher the likelihood of a quick refund.

Regular account monitoring:
Check the status of your reserve account periodically. This will allow you to track inflows and understand when the end of the retention period is approaching.

Contact your bank or payment system in a timely manner:
At the end of the reservation period, contact your bank or payment system to request a refund. Prepare all necessary documents to ensure that the refund process is as quick and smooth as possible.

Be prepared for possible delays:
Sometimes the refund process may be delayed due to internal bank procedures or additional checks. Be prepared for such situations and be patient.

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Rolling Reserve is an important tool for minimizing financial risks that could affect the availability of funds for your business. To avoid problems, it is important to understand the terms and conditions for holding funds and take steps to prevent disputes and chargebacks. Timely communication with your bank or payment system and compliance with all terms and conditions of the agreement will help you successfully recover your funds at the end of the reserve period.