Rolling reserve

Also called reserve, holdback

A share of each period's sales that a payment provider or merchant of record holds back for a set time to cover later chargebacks and refunds, then releases on a rolling basis.

A reserve is cash you have earned but cannot use yet. The provider keeps a percentage of sales so that chargebacks arriving after it has paid you can be covered from money it still holds.

Few providers publish their reserve terms. Aghanim is an exception: its developer terms let it withhold 5% of monthly gross receipts, cumulatively, for the first six months, then 5% “on a monthly rolling basis”. FastSpring does not call it a reserve, but its 14-day settlement delay on every transaction and 45-day hold on new accounts work the same way (FastSpring). Stripe sets reserves at its discretion.

On $1M a month of web sales, a 5% reserve holds back $50,000 each month. That is working capital, and it is also exposure to the provider. Digital River, a large merchant of record, lost its credit facility in January 2025 and began winding down (Fintech Futures), and former clients reported delayed or missed payouts. Get reserve terms in writing. See hidden fees.