Merchant Account Reserve
Reserve is a portion of the monthly revenue from a merchant’s card processing transactions that credit card processing companies may request to hold in an escrow account as an insurance against possible loss from chargebacks and other sources. Used mainly with high-risk merchant accounts, upon satisfactory completion of a predetermined period, reserves are returned to the merchants. In the case of a rolling reserve, a reserve is held every month for a certain period (usually six months).
Original text: Merchant Account Reserve
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