In payments
A processor or acquiring arrangement may retain part of a merchant’s payable balance rather than sending the full amount with the normal payout. Reserve structures and release terms vary by agreement.
In reconciliation
A reserve can explain why a settlement or expected deposit is larger than the amount that reaches the bank. Finance should identify the reserve movement rather than treating the withheld amount as an unexplained shortfall.
Example
Expected funds before reserve$24,000
Reserve withheld$1,500
Bank deposit$22,500
The $1,500 difference is explained by the reserve.
Related terms
Updated
September 22, 2026
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