In the European payments ecosystem, rolling reserves and risk ratios define how much of your transaction volume stays on hold, especially if you’re in a high risk industry like gaming, forex, crypto, or CBD.
At KunnectPayments, we help merchants reduce reserve percentages and negotiate better terms with acquirers and PSPs, so your cash flow stays strong.
1. What Is a Rolling Reserve?
A rolling reserve is a portion of each transaction (usually 5–10%) that your acquiring bank withholds for a set period, typically 90 to 180 days.
It acts as a safety buffer for potential chargebacks or refunds.
💡 Example:
If your business processes €100,000 monthly with a 10% reserve, €10,000 is held back and released after 90 days.
2. Why It Exists in the EU Market
EU acquirers follow PSD2 and EBA guidelines that emphasize risk mitigation. High risk merchants face higher reserves due to:
- Elevated chargeback rates
- New or unproven business models
- Cross border transactions
- High ticket or subscription based payments
3. What Are Risk Ratios?
Risk ratios measure your chargeback-to-transaction ratio, refund frequency, and fraud score.
If these metrics exceed 1%, acquirers may increase reserves or freeze settlements.
💡 KunnectPayments monitors your live ratios and flags risks before banks act.
4. How KunnectPayments Minimizes Reserves
We use data-driven profiling and strong acquirer relationships to secure better terms:
- Negotiate lower reserve rates (as low as 3%)
- Automate chargeback reduction with AI based fraud filters
- Provide transparent dashboards to monitor funds held
- Work with multiple acquirers to diversify risk
💡 Merchants processing via KunnectPayments often see reserve release timelines reduced by up to 40%.
5. The EU Advantage with KunnectPayments
- EU compliant setup under PSD2, MiCA, and AMLD6
- Fast track onboarding with pre approved acquirer networks
- Local currency settlements and transparent reserve reporting
Rolling reserves are part of doing business in Europe’s high risk sectors but they don’t have to choke your growth.
With KunnectPayments, merchants get smart reserve management, real time visibility, and bank relationships built to scale safely.
Partner with KunnectPayments today to reduce your rolling reserves and unlock steady cash flow.