How a rolling reserve works mechanically
Every day's batch settles to the merchant minus the reserve withholding. After 180 days, each day's reserve is released back to the merchant — so the reserve "rolls" forward continuously. The total amount held is roughly: monthly volume × reserve percentage × 6 months.
For a $100K/month merchant at 15% reserve, this equals $90,000 of locked working capital at steady state. For a $500K/month merchant, $450,000.
Why reserves exist
Acquirers carry the legal liability for chargebacks. If a merchant fails after taking customer money, the acquirer reimburses the cardholders. The reserve is the acquirer's collateral against that exposure. The longer the reserve schedule, the better the acquirer is protected — and the worse the merchant's cash position.
What 180 days does to a growing brand
The 180-day reserve is engineered for the wrong cash-flow scenario. A peptide brand growing 20% month-over-month is producing more reserve obligations than reserve releases at every point — meaning the locked capital grows continuously rather than stabilizing. Generalist high-risk processors do not adjust for this.
How PeptideRails handles reserves
Our reserve is statement-audited and released on a 90-day rolling schedule — half the industry default. The exact percentage is calibrated to your chargeback history and product category, and disclosed in writing in your underwriting letter before signing. We don't quote reserves as a public number because the right reserve is a function of your actual merchant profile, not a default tier.