What Is A Rolling Reserve And Will I Be Asked For One?
A Rolling Reserve usually rolls for 6 months and is given to the highest risk merchants. Basically, a percentage (ranges from 5% to 20% usually) is taken off the top of each transaction and is placed in a non-interest bearing checking account for 6 months. On the 7th month, the merchant receives the 1st month back. On the 8th month, the merchant receives the 2nd month back and so forth rolling forward. This is actually an awesome way to build predictable reserves against charge backs and establish higher and higher volumes without your business being capped.
