What are reserves in payment processing?

Reserves in Credit Card Processing

A reserve on a merchant account in credit card processing is a temporary hold on a portion before they are deposited in your bank account. For example, if you had a 2 week reserve of $2000, there would be a hold of a rolling total amount of $2000.

The funds in the reserve are in place to protect both the merchant and credit card processor in the event of unplanned risk events such as chargebacks.

Reserves are put in place for merchants that are higher risk for some reason. Higher risk merchants might be new businesses, riskier industries (i.e. custom made furniture), or businesses with a history of chargebacks. You can read more about risk.

Share on facebook
Share on twitter
Share on linkedin
Share on email
Dots for Clearly Payments

Get access to wholesale payment processing rates for a low fixed monthly fee. You can’t get cheaper credit card processing than this.