Payment problems
Your rolling reserve is strangling cash flow.
A rolling reserve is the acquirer holding a slice of every settlement against future chargebacks. Set lazily, it can cost more than your processing fees.
What’s actually happening
Reserves exist because chargebacks arrive months after sales: the acquirer holds a percentage of takings (commonly 5–15% in specialist sectors) for a rolling period (often 90–180 days), releasing each tranche as its risk window closes.
The problem is calibration. Category-level underwriting sets reserves by sector reflex; file-level underwriting sets them by your actual chargeback ratio, delivery window and history. The difference is your working capital.
What to do right now
- Check your agreement for the reserve type (rolling, capped, up-front), percentage, holding period and — crucially — the release schedule and review clause.
- Build the evidence for a reduction: 6–12 months of chargeback ratios, refund practice, fulfilment proof. Then formally request a review; providers rarely volunteer one.
- Model the real cost: reserve percentage × monthly volume × holding period is capital you are lending your acquirer interest-free.
How the group helps
Re-underwriting on your file, not your category: reserves and terms quoted against your actual history, with every cost — including the reserve mechanics — explained before you commit.
As history accrues, terms are reviewed: clean ratios are evidence, and evidence moves pricing.
Realistic expectations
In higher-risk categories some reserve is normal and honest — anyone promising “no reserves” for a high-chargeback sector is mispricing risk and will correct it at your expense later. The goal is a reserve that matches your file.
Related: Pricing, explained · Chargeback management · Payment gateway costs
VIP360 is the platform, not the counterparty: regulated services are provided by the licensed institution you are matched with, under its own licence and terms.
Frequently asked questions
What is a normal rolling reserve?
Mainstream retail often has none; specialist sectors commonly see 5–15% held for 90–180 days. Within that range, your ratio and history should set the number — not the sector average.
Can reserves be removed entirely?
Sometimes, after sustained clean history — more often they step down. A written review schedule is the realistic ask.
Is the reserve the provider’s money?
No — it remains your money, held against contingent liabilities and released per the schedule. The agreement should state exactly when and how.
Talk it through with a specialist
Tell us what happened: sector, provider, timeline. You’ll get an honest read on your options, typically within one business day.
Prefer to write directly? Email info@vip-360.com with “urgent” in the subject line and what happened — it reaches the same specialists, and honesty about your situation speeds everything up.