Rolling Reserve is a security measure applied by myPOS on all MO/TO (Mail Order/Telephone Order) transactions, as they are considered "risky transactions." These transactions, executed without the physical card being present, are more likely to be fraudulent and can lead to disputes and chargebacks.
Key Features of Rolling Reserve:
Purpose:
- The Rolling Reserve acts as a financial buffer to protect against potential chargebacks, transaction reversals, and fraud claims.
How It Works:
- Reserve Percentage: 30% of each MO/TO transaction amount is reserved as a precaution, with a minimum amount of EUR 1.
- Holding Period: The reserved amount is held for 180 days to cover any potential chargebacks or fraud claims.
Release of Funds:
- Funds are released back to the merchant in the order they were collected if no claims occur. Amounts withheld 180 days ago are released first, followed by those withheld 179 days ago, and so on.
- Reserve Accounts: Separate reserve accounts are created for each currency, which can be reviewed under the Reserve Accounts section in the myPOS account.
Managing Reserve Accounts:
- Future Releases: The Future Releases section shows the amounts due to be released first.
- Transferring Funds: Funds can be transferred between reserve accounts in the same or different currencies, handled through the basic accounts they are tied to.