A merchant account reserve is a portion of your processed funds held back by your acquirer or processor as a safeguard against future chargebacks, refunds, or fraud. Reserves can be rolling (released after a set period), capped (fixed limit), or upfront (held from the start). They’re common in high-risk industries or with new merchants without established processing history.
Reviewing reserve terms regularly is especially important as your transaction volume or risk exposure changes.
AltoPay provides transparency into your reserve terms and helps forecast when funds will be released. Understanding how reserves work helps you manage cash flow and plan around payout timelines.
For more than a decade, Jessica Velasco has been a thought leader in the payments industry. She aims to provide readers with valuable, easy-to-understand resources.
