If you've been notified that a reserve has been placed on your account, don't panic — this article will walk you through exactly what that means, why it happens, and what you can do about it.
What is a reserve?
A reserve is simply a portion of your payment settlements that gets held in a separate account as a financial safety net. Think of it like a security deposit. It's there to cover any disputes or refunds that might come up if a customer challenges a charge and the funds aren't readily available in your account to cover it.
There are two types of reserves you might see:
Fixed reserve (capped reserve) — A specific dollar amount is held from your settlements until that target balance is reached. Once it's met, no more funds are withheld.
Rolling reserve — A percentage of your daily settlements is held over a set period of time. Once that period ends, those held funds are released back to your bank account automatically or on a schedule set by the risk team.
Why was a reserve placed on my account?
Reserves are put in place to protect both you and your customers. There are a few common reasons this might happen:
Credit-related factors — A credit score of 550 or below, recent late payments or delinquencies, an active or recent bankruptcy, outstanding liens or judgments, or a history of accounts sent to collections.
Financial factors — Your banking history doesn't support the processing volume you've requested, or your overall financial picture is considered a higher risk.
Industry type — Some business types are considered higher-risk by card networks, which can require a reserve regardless of your individual credit profile.
Where can you see your reserve details?
You can track everything related to your reserve right inside the app.
Reserves Report — Shows how much is currently being held, the reserve rule applied to your account, and a full history of past holds and releases.
Deposit Report — Includes reserve holds and releases as individual line items so you can reconcile your account accurately.
When does the reserve go away?
That depends on the type of reserve on your account. A fixed reserve is released once the target amount has been collected. A rolling reserve remains in effect for a period of time determined by the risk team. The timeline will be communicated to you when the reserve is set up.
Can you get out of it sooner?
Possibly! If you can show meaningful improvement in your credit profile or provide stronger financial documentation, you can submit a request to have your reserve reviewed early. The risk team makes the final call and it's not guaranteed, but it's absolutely worth asking if your situation has improved.
Still have questions?
Reach out to our support team: