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Key facts (as of 29 October 2026)
- Typical high-risk terms: 5–15% of volume, often held for 6–12 months. These are terms published by high-risk processors, as compiled by Finzil.
- Outlier: one processor's case study describes an MGA-licensed casino whose acquirer held 25% for 12 months (Finzil).
- Settlement delay: high-risk payouts arrive anywhere from the next day to a week later. T+1 is the most common published window, listed by 28 of 79 iGaming payment providers (15M).
- Why reserves last so long: most Visa disputes can be raised within 120 days of processing, and some "not received" disputes run up to 540 days (Adyen, Visa dispute guidance).
- Margin squeeze: UK Remote Gaming Duty rose from 21% to 40% of gross gaming revenue on 1 April 2026 (HMRC; Finzil), while reserves kept cash locked up.
Card payments can be disputed long after they settle. If a merchant fails or disappears, the acquirer pays the refunds. A reserve is the acquirer's protection: part of the merchant's own money, kept until the risk window passes.
Reserve structures
| Type | How it works | When used | Merchant's main concern |
|---|---|---|---|
| Rolling reserve | A percentage of each day's settlement is held and released after a fixed period, on a rolling basis | Most common for high-risk merchants | Size of the steady-state balance |
| Up-front (fixed) reserve | A lump sum is deposited or withheld at the start | New merchants with no history | Cash needed before launch |
| Capped reserve | Holding continues until the reserve reaches a set amount, then stops | Mature merchants with steady volumes | Whether the cap rises with volume |
| Delayed settlement | Payouts are made later than standard, without a separate reserve | Often combined with the above | Working-capital gap |
| Collateral or guarantee | Bank guarantee or parent guarantee in place of cash | Larger groups | Cost of the guarantee |
What drives the terms
| Factor | Pushes reserve up | Pushes reserve down |
|---|---|---|
| Processing history | New merchant, no statements | Six or more clean months |
| Dispute ratio | Near or above VAMP or Mastercard thresholds | Well below thresholds |
| Delivery model | Future delivery (subscriptions, travel, pre-sales) | Instant delivery |
| Licence | Weak or unlicensed markets | Recognised licence (UK, Malta, Ontario) |
| Financial strength | Thin capital, single owner | Audited accounts, group backing |
| Market risk | Exposure to markets facing bans | Diversified, stable markets |
Brazil's 2026 ban shows the last factor in action. After MP 1.394, banks had to return R$1.325bn of player balances, and processors exposed to Brazilian operators faced sudden wind-downs. Acquirers price that kind of tail risk into reserves.
How a rolling reserve builds
flowchart LR
A[Daily card settlement] --> B[Acquirer deducts fees]
B --> C[10% held in reserve]
B --> D[90% paid to merchant]
C --> E[Reserve ledger: each day's hold dated]
E -- After 180 days --> F[Release to merchant]
E -- Chargeback or loss --> G[Acquirer debits reserve]Illustrative example: month by month
Illustrative example. The merchant, volumes and terms are invented.
A merchant settles 1,000,000 a month with a 10% reserve held for six months.
| Month | Held this month | Released this month | Reserve balance at month end |
|---|---|---|---|
| 1 | 100,000 | 0 | 100,000 |
| 2 | 100,000 | 0 | 200,000 |
| 3 | 100,000 | 0 | 300,000 |
| 4 | 100,000 | 0 | 400,000 |
| 5 | 100,000 | 0 | 500,000 |
| 6 | 100,000 | 0 | 600,000 |
| 7 | 100,000 | 100,000 | 600,000 |
| 8 | 100,000 | 100,000 | 600,000 |
From month 7 the balance plateaus at about six months of retentions. The money is the merchant's, but it cannot be used for payroll, marketing or player withdrawals. If volume doubles in month 8, the reserve keeps growing for another six months.
NoteReserves are an asset on the merchant's balance sheet, not an expense. They should be tracked in a separate ledger account and reconciled against acquirer statements each month. See Accounting, reconciliation and tax.
How merchants negotiate
Finzil's guidance for operators:
- Get the reserve percentage, the holding period and the release schedule in writing. A reserve with no release date is a warning sign.
- Ask for a review after six clean months. Low chargeback ratios are the main argument for a lower reserve.
- Spread volume across processors, so a reserve or volume cap at one does not stop the business.
- Keep a current application pack (licence, ownership chart, AML policy, six months of statements) so a second processor takes weeks, not months.
Additional points worth putting in the contract:
- what happens to the reserve on termination, and how long it is kept afterwards
- whether interest is paid on it (often not)
- which events allow the acquirer to raise it mid-contract
- whether a capped reserve's cap moves with volume
WarningChargeback performance drives reserves. Keeping well inside Visa's VAMP thresholds is the strongest negotiating position. Crossing a threshold often leads to a higher reserve long before any scheme fine.
Reserves and stablecoins
Stablecoin transfers have no chargeback mechanism. A business that settles part of its volume in stablecoins does not face reserves on that part for chargeback reasons. It still needs liquidity for refunds, player withdrawals and counterparty risk. Card volume keeps its reserve terms.
At the network level, Visa says its seven-day USDC settlement can help support collateral reduction for issuers and acquirers that settle daily. That concerns the bank-to-network relationship. It does not automatically change a merchant's reserve.
WarningMoving volume off cards to escape a reserve does not escape consumer-protection duties. Gambling regulators expect operators to handle complaints and refunds whatever the payment method.
Jurisdiction notes
| Market | Factor that affects reserves |
|---|---|
| United Kingdom | Credit card gambling ban; financial vulnerability checks when net deposits exceed £150 in a rolling 30 days (since 28 Feb 2025; UKGC); higher Remote Gaming Duty |
| Netherlands | Deposits blocked above €700 a month net (€300 for 18–24-year-olds) until affordability is shown (since 1 Oct 2024) |
| Germany | €1,000 a month cross-operator deposit limit since 1 July 2021 |
| Brazil | Ban from 25 Sep 2026; processors face wind-down and refund obligations |
| Malta | MGA-licensed operators: the 25% / 12-month case cited above shows terms can be steep even with a strong licence |
Timeline
| Date | Event |
|---|---|
| 1 Jul 2021 | Germany's €1,000 monthly deposit limit applies |
| 1 Oct 2024 | Dutch net deposit thresholds apply |
| 28 Feb 2025 | UK financial vulnerability checks begin |
| 1 Jun 2025 | Visa's consolidated VAMP takes effect |
| 1 Apr 2026 | UK Remote Gaming Duty rises to 40%; VAMP merchant threshold falls to 150 bps in four regions |
| 25 Sep 2026 | Brazil bans fixed-odds betting |
Q/A
Is a rolling reserve a fee?
No. It is the merchant's money, held and then released. The cost is the working capital tied up.
Can an acquirer change the reserve mid-contract?
Many merchant agreements allow it if risk rises. Read the clause before signing.
Why is the holding period so long?
Dispute windows. Most Visa disputes can be raised within 120 days, and some delivery disputes much later. Acquirers set periods to cover most of that tail.
What happens to the reserve if I switch acquirer?
The old acquirer usually keeps it until the dispute window on past transactions closes. Plan for paying two reserves for a while.
Do open banking payments carry reserves?
Account-to-account payments carry no card chargebacks, so processors usually do not hold chargeback reserves on them, though they may hold some funds against refunds and fraud.
Does a lower reserve justify higher fees?
Sometimes. Compare the cost of tied-up capital against the fee difference.
Sources
- Finzil, iGaming payment challenges (18 October 2026): https://finzil.com/blog/igaming-payment-challenges
- 15M, payments and fintech news: https://15m.com/news/payments-fintech/
- Adyen, dispute timeframes: https://docs.adyen.com/risk-management/understanding-disputes/dispute-timeframes
- Visa, dispute management guidelines for merchants: https://usa.visa.com/dam/VCOM/global/support-legal/documents/merchants-dispute-management-guidelines.pdf
- Visa, VAMP fact sheet (2025): https://corporate.visa.com/content/dam/VCOM/corporate/visa-perspectives/security-and-trust/documents/visa-acquirer-monitoring-program-fact-sheet-2025.pdf
- Visa, USDC settlement in the United States: https://corporate.visa.com/en/sites/visa-perspectives/newsroom/visa-launches-stablecoin-settlement-in-the-united-states.html
- Ministério da Justiça, R$1.325bn to be returned: https://www.gov.br/mj/pt-br/assuntos/noticias/bets-fora-do-ar-plataformas-cumprem-determinacao-e-encerram-apostas-no-brasil
- HM Revenue & Customs, gambling duty changes (policy paper): https://www.gov.uk/government/publications/changes-to-gambling-duties/gambling-duty-changes
- UK Gambling Commission, LCCP SR Code 3.4.4 financial vulnerability check: https://www.gamblingcommission.gov.uk/licensees-and-businesses/lccp/condition/3-4-4-financial-vulnerability-check
- UK Gambling Commission, credit card ban (14 January 2020): https://www.gamblingcommission.gov.uk/news/article/gambling-on-credit-cards-to-be-banned-from-april-2020
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