Payments glossary
Rolling reserve
A rolling reserve is a percentage of a merchant's card turnover that a payment provider holds back for a fixed period - commonly around 5-10% for 90 to 180 days - as a buffer against future chargebacks and refunds, paid out on a rolling schedule as each period matures.
How a rolling reserve actually works
Suppose your agreement specifies a 10% reserve held for 90 days. Of today's R10,000 in card sales, R1,000 is held back and R9,000 settles to you on your normal schedule. Ninety days from now, that R1,000 is released - and the same mechanic applies to every subsequent day's sales, which is what makes the reserve "rolling": money is always being held and always being released, with the total held amount stabilising at roughly the reserve percentage of one period's turnover.
Why honest providers talk about reserves upfront
A reserve surprise at payout time destroys more merchant relationships than the reserve itself ever would. The mechanics exist for a sound reason - card payments are reversible long after the goods have shipped - but the terms belong in the open: the percentage, the holding period, the review date, and what performance earns a reduction. That is the standard LekkaPay holds itself to on merchant accounts.
Frequently asked questions
Why do payment providers hold a rolling reserve?
Because card payments can be reversed for months after settlement. If a merchant fails or is hit by a chargeback wave after being paid out, the payment facilitator carries the loss - the reserve is the buffer that makes facilitating higher-risk merchants possible at all.
Does every merchant pay a rolling reserve?
No. Reserves are risk-based: established merchants in low-risk industries with clean chargeback histories often have reduced or no reserves, while new merchants, pre-order businesses and high-risk categories typically start with one. Terms should be reviewed as your track record builds.
Do I earn interest on reserved funds?
Usually not - reserve terms are set in your merchant agreement, and interest treatment varies by provider. Ask before you sign; a provider that explains its reserve mechanics plainly is telling you something about how it will treat you generally.
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