What are rolling reserves?
To protect both the merchant and the cardholder against fraud and/or customer disputes, some merchant accounts are required to maintain a cash reserve for a specific period of time. A ROLLING RESERVE is not actually a fee since the money may be returned to the merchant at the end of the hold period, assuming no adverse transactions have occurred. If your merchant account is required to maintain a reserve, an amount will be withheld from each day’s GROSS DEPOSIT. If you are required to maintain a ROLLING RESERVE, each day your DDA will be credited with a NET DEPOSIT, meaning daily NET DEPOSIT minus daily RESERVES withheld.
