A rolling reserve temporarily withholds an agreed portion of incoming transactions to cover risks such as refunds and disputes. Release follows each transaction's age, unlike a fixed reserve releasing on one end date.[1]
Track withheld and released amounts separately in cash planning. A reserve is not automatically a fee or permanent loss, but the funds are not yet freely payable. Percentage, duration and application depend on the actual arrangement. Explaining the mechanism does not imply that a particular provider makes it available to every merchant.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.