If applicable for the payment gateway account, the method by which transaction funds are held in the risk reserve sub-account to cover possible returns or chargebacks.
Fixed Reserve – The reserve balance is established by either, (1) the receipt of a lump sum deposit from a merchant, or (2) the withholding of funds from each batch settlement at a fixed reserve rate until the reserve balance reaches a set reserve amount. A Fixed Reserve can also be established by a combination of lump sum deposit and withholding of settlement funds.
Rolling Reserve – The reserve balance is established by the withholding of a percentage of funds from each batch settlement. With a Rolling Reserve, no set reserve amount or cap is specified. Rather, the amount withheld is retained for a specified number of Reserve Holding Days and then deposited to the merchant’s bank account.