Rolling reserve: what it is and how it works

A rolling reserve is a small part of your takings that is set aside for a period and then returned. It covers possible future disputes or refunds. Most accounts do not have one: it applies only in certain cases.

When it applies #

It depends on your account’s risk assessment. Some typical examples:

• activities in sectors considered higher risk;
• many disputes (chargebacks) in the payment history;
• a new activity with no history yet;
• sales taken long before the service: travel, events, tickets, bookings.

The rolling reserve can apply only to payments through the Pay provider. Pay Plus payments are never affected. If your account has a reserve, we will tell you the percentage applied.

How it works #

1. A percentage is withheld from each payment.
2. That sum stays blocked for 180 days, about 6 months.
3. After the 180 days, it is returned to you with the normal payout.

Each payout withholds a new share and, after the first six months, returns an old one. That is why it is called «rolling»: after the start, the money going into and coming out of the reserve balances out.

A concrete example #

A shop takes CHF 8’000.- a month with a 5% reserve.

• In the first six months you receive CHF 7’600.- a month instead of 8’000.- (fees aside).
• The reserve reaches CHF 2’400.- at most, that is six shares of CHF 400.-.
• From the seventh month you receive CHF 8’000.- a month again: 7’600.- of takings plus 400.- returned from the reserve.

If takings change from month to month, so do the shares, but the principle stays the same.

Where you see it #

• Under Payouts you see the total currently withheld.
• When you open a single payout, you see how much was withheld and returned in that period.
• In the transaction export, withholdings appear as payout-reserve and returns as payout-reserve-reversal.

Can it be removed? #

The reserve is reassessed over time. With a regular history and few disputes you can ask us to review it: write to us at info@1pay.ch.