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What are Reserves?

Reserves are funds that belong to you but have been set aside. We hold money in reserve just in case you receive payment reversals or chargebacks and your PayPal balance isn't enough to cover them. Reserves are typically applied to merchants who handle:
  • large sums of money,
  • high dollar items, or
  • items in high-risk categories
Your reserve amount is listed on your Pending Balance page. From time to time, we may need to adjust your reserve amount. If that happens, we’ll email you about the changes.
 
There are two types of reserves, rolling reserves and minimum reserves.
 
Rolling reserves
 
With rolling reserves, a percentage of each transaction is held and then released after a certain amount of time. For example, your reserve may be set at 10% and held for a 90-day rolling period. This means that we’ll hold 10% of the payments you receive on the first day until day 91, 10% of your second day's payments until day 92, and so on.
 
Minimum reserves
 
A minimum reserve is a specific amount of money that you must keep in your PayPal balance. A percentage of the payments you receive will be held until the reserve is met. For example, if your minimum reserve is $5,000.00 we'll hold a certain percentage of each transaction until you reach $5,000.00.
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