Rolling Reserve
A rolling reserve is a portion of an operator's revenue a payment processor withholds to cover potential chargebacks and refunds.
What it means
A rolling reserve is money a payment provider holds back — typically 5-10% of processed volume — and releases on a delay, often 90-180 days. It is the processor's buffer against chargebacks, refunds, and fraud in a high-risk vertical like iGaming.
Why it matters for operators
Reserves tie up working capital, sometimes a large amount, so they directly affect cash flow. The percentage and hold period are negotiable and improve as you build a clean processing history. Operators should model reserves into their cash planning rather than be surprised by withheld funds.
Example
A processor holding a 10% rolling reserve for 180 days on 500,000 monthly volume can have around 300,000 of an operator's money tied up at any given time.