A Practical Look for High-Risk Merchants

If you're running a high-risk business, you’re probably familiar with rolling reserves. They’re part of the agreement you sign when setting up your credit card processing. But knowing they exist doesn’t make them any less frustrating — especially when those funds could be used to grow your business.

Many merchants see reserves as a punishment, especially when they’re operating responsibly. But there’s more to this setup than meets the eye — and a lot worth considering if you want more control over your cash flow.

Rolling Reserves: Still Frustrating, Still Real

Let’s skip the textbook definitions. You know what rolling reserves are — a percentage of your transactions held back for a few months as a buffer. They’re common in high-risk payment processing, whether you're selling supplements, running a subscription business, or offering digital services.

The issue isn’t that reserves exist. It’s how they’re applied, how long they last, and whether they truly reflect the risk your business presents.

Some merchants see 5 to 15% of their revenue held for up to six months. That’s not just inconvenient — it’s a potential roadblock to scaling, hiring, marketing, or simply staying competitive.

Why Payment Processors Do It

From the processor’s perspective, rolling reserves are a way to stay safe. If a merchant gets hit with fraud, chargebacks, or disappears altogether, that reserve covers the losses. It's a financial cushion.

Fair enough. But the problem arises when that same logic is applied across the board, without room for individual assessment. Not every high-risk business carries the same level of risk, and yet many are treated identically.

The result? Reliable, low-dispute merchants end up stuck with terms that don’t match their track record.

The Cash Flow Strain is Real

For new or growing merchants, having a chunk of revenue locked up can slow everything down. You might have a great product, loyal customers, and steady sales — but limited access to your funds keeps you from reinvesting.

It's not just about frustration. It can mean delayed product launches, missed marketing opportunities, or trouble making payroll. Even worse, some reserve agreements are vague, making it unclear when or how you'll see that money again.

If your payment gateway isn’t transparent about how reserves are managed, that’s a red flag.

Is There Room to Negotiate?

Yes — and you should try. If your business shows strong metrics like low refund rates, minimal chargebacks, and consistent volume, bring that data to the table. Many payment providers are open to adjusting reserve terms over time, especially if you’re working with a partner that understands high-risk industries.

You can also ask about alternatives:

  • A capped reserve (a maximum amount held)
  • A shorter holding period
  • A flat reserve instead of a rolling one

These aren’t always guaranteed, but asking puts you in a stronger position — and shows your provider that you're serious about managing risk collaboratively.

Picking the Right Payment Gateway

Not all gateways are built for high-risk. Some are set up with rigid policies that don’t allow for flexibility, no matter how reliable your business is. Others specialize in high-risk processing and understand that risk is more than just a category — it’s a spectrum.

A good payment partner will:

  • Communicate reserve policies clearly
  • Adjust terms based on your performance
  • Help you reduce disputes with better tools and support
  • Treat you like a long-term client, not a liability

That kind of relationship can make or break your growth potential.

Rolling Reserves Aren’t Going Away — But They Can Be Managed

This isn’t about trying to eliminate reserves altogether. In many cases, they’re necessary. But they shouldn’t feel like a punishment, and they definitely shouldn’t be the reason your business can’t grow.

If you’re stuck in a reserve arrangement that doesn’t make sense anymore, it might be time to reassess. Ask questions. Present your data. Explore other payment gateways that offer more tailored solutions.

Reserves will continue to be part of high-risk payment processing. But they should be one part of a bigger strategy — not a roadblock.