Fixed and rolling reserve FAQs
Last updated: November 23, 2022
This page should help answer any questions you might have about fixed and rolling reserves.
For the duration of your Checkout.com contract, we hold a fixed amount of your funds in reserve to cover things like chargebacks and refunds. This is known as a fixed reserve.
For the duration of your Checkout.com contract, we hold a percentage of the daily transactions that we process for you on a rolling basis over a specified period of time. This is known as a rolling reserve and covers things like chargebacks and refunds.
For example, let's say you have a rolling reserve of 10% with a 30-day rolling period. We will then hold 10% of the transactions processed, on a daily basis. Each day's reserve will be held for 30 days from the date we deducted the funds.
The rolling reserve mechanism will continue for the duration of your contract, unless we inform you otherwise.
We will hold the reserve in accordance with the terms of your Checkout.com contract. As the details may be different for each merchant, we will communicate these separately to you.
Your reserve amount, rate, rolling period and/or retention period is subject to increase, decrease, or change depending on:
- The volume of transactions you process
- Your financial health
- The number of refunds and chargebacks raised against you
- Any other factors that affect your risk profile
As a result of such a review, we may make further changes to the terms of your reserve, in accordance with the terms of your Checkout.com contract.
Yes, your reserve is safeguarded.