Rolling Reserve

A rolling reserve is used as a risk mitigation strategy: a percentage or flat amount of each transaction is kept in reserve by the payments processor for a specific period of time. If the merchant’s account is closed or shut down, these funds are used to cover any losses resulting from processing the merchant’s transactions, e.g. to cover the cost of chargebacks and refunds.

What is a rolling reserve in payment processing and how does it work?
How is the amount of rolling reserve determined?
How are rolling reserves handled in IXOPAY?

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