What is a rolling reserve?
A rolling reserve is a risk management tool used by payment processors and financial institutions to mitigate potential financial risks associated with merchant processing accounts. It involves withholding a percentage of your daily sales for a predetermined period. This withheld amount is set aside as a reserve and is held in your processing account to cover potential excessive chargebacks, refunds, and other unforeseen expenses.
GuestyPay withholds 10% from every sale transaction included in a settlement, keeping this amount as a batch total for 90 days from the settlement date and releasing it back to your processing account balance on the scheduled release date.
How does a rolling reserve work?
For instance, if the settlement from 8/29/23 includes the sales amount of $640, and your rolling reserve is set at 10%, GuestyPay will withhold $64 for 90 days from the settlement date. The amount of sales and collected reserve fees can be viewed in the Settlement report.
The collected reserve amount will be released to your account balance on the scheduled release date and then included in the relevant payout. The release date of each reserve and the total reserve balance can be viewed in the Account Balance report.