Large companies with significant turnover (£100,000+ per month) may often incur a rolling reserve with their merchant acquirer. Depending on the chargeback risk, the actual % can vary. What this means is that the acquirer will hold on to a certain % of all payments for a longer period of time than the usual payout because the volume is so high. If a large amount of these payments were disputed, the acquirer would incur a significant risk. By holding a rolling reserve there will always be funds available to cover lost disputes and chargebacks.
The percentage tends to fluctuate around 10%.
Rolling reserves will also be introduced for accounts that are exhibiting a significant % of chargebacks and disputes, again as a means of risk mitigation.
The general principle for SmartTrade App users is not to incur any rolling reserves but to the extent that the turnover or number of disputes is significant then this credit mitigant may need to be employed by the Payment Provider.