Table of Contents
Overview
A reserve is when a portion of your funds is temporarily held for a set period of time. It’s a standard practice in the payments industry and helps cover potential losses from client chargebacks or refunds.
Reserves are put in place to ensure there are enough funds available if any issues come up. Once the reserve period ends, the remaining funds (minus any covered refunds or chargebacks) will be paid out to you.
Having a reserve in place doesn’t affect your ability to accept payments or continue using Jobber Payments.
Types of reserves
There are multiple types of reserves including:
Rolling reserve
A rolling reserve is a type of reserve where funds are held for a set number of days, this is called the rolling window. For example, we might hold 5 percent of each day's processed volume and release those funds after 30 days. That means 5 percent of the volume you process today would be held and then released 30 days later. The same would apply to tomorrow's volume, which would be released 30 days after that, and so on.
It's important to note that the release date is when the funds are made available to be sent to your bank, not necessarily when they will appear in your bank account. When you first sign up for Jobber Payments, there is an initial authorization period where the first payout will take up to 5 business days to be deposited into your account. After this initial period, payouts typically take one to two business days after the release date to appear in your account, depending on your bank's processing times. Learn more about Jobber Payments Payout Windows.
Since reserves are released on a rolling basis, you’ll see funds gradually returned over time as each hold period ends. Even if the overall reserve plan expires, any funds already held will still be released only once their full 30-day window is complete.
Fixed reserve
A fixed reserve holds funds until a specific release date. As you continue processing transactions, a portion of your funds is added to the reserve. Then, once the release date is reached, all of the held funds are released at the same time, regardless of when they were originally held.
For example, if your fixed reserve is set to release on March 1, all reserved funds will be paid out on that date, even if they were placed in reserve weeks earlier.
Payout delays
Payout delay days refer to the number of days a payout or transaction is delayed before it is processed or completed. This concept is often used in financial systems to manage the timing of payouts, especially in scenarios involving risk management or fraud prevention.
For example, in some systems, payout delay days are used to provide a buffer period during which chargebacks can be filed or additional checks can be performed before the funds are released. The payout delay can vary based on factors such as the country of operation or specific account settings.
Learn more about
Standard Jobber Payments Payout Windows
Can you appeal a reserve?
In some cases, yes. If your reserve is eligible for appeal, the email you receive when the reserve is applied will include instructions on how to begin the process. If you have questions or want to talk through your specific situation, you can contact our team using the details provided in that email— we're here to help.
Here’s what to expect with different types of reserves:
- Fraud-related reserves: These are usually tied to a specific flagged transaction. If that payment is refunded, the reserved funds are released. These types of reserves are generally not open to appeal.
- Credit risk-related reserves (rolling or queued): These may offer more flexibility. While they often remain in place for a period of time, we regularly review them and can reassess based on how your business is performing. Demonstrating consistent, low-risk behavior—like a reduced chargeback or refund rate—can help your case over time.
As part of the review, we may request supporting documents or additional context. While final decisions are made at Jobber’s discretion, we aim to be fair and considerate by balancing your business needs with our risk requirements.
To support your appeal, be sure to include as much information as possible about your business, along with any relevant documents. This helps us better understand your situation and can speed up the review process.
To help move things forward smoothly, we recommend:
-
Responding promptly to emails from our team
-
Providing any requested documents
-
Reducing refund or chargebacks rates where possible
-
Ensuring a consistent account balance
We're committed to making the process as straightforward as possible while ensuring a safe experience for everyone using Jobber.
Frequently asked questions about reserves
When and why are reserves applied?
Jobber's Risk team may apply reserves or delay days as a way to protect both your business and your clients; especially when there’s a bit more uncertainty around payments or performance. These tools help manage financial risk in situations where there’s a higher chance of refunds or chargebacks.
Some common reasons we might apply them include:
- You’re new to the platform and haven’t built up much transaction history yet.
- You’ve had a sudden spike in sales, and we want to make sure everything is being delivered as expected.
- There’s been a higher rate of chargebacks or cancellations, which can signal a potential business risk.
- You’re in a higher-risk industry, where client chargebacks tend to be more common or delivery timelines are longer.
- We need to verify certain details about your business or services (e.g., during underwriting or document review).
By holding a portion of funds at each given time, we can ensure there’s enough coverage in case anything goes wrong, like a refund request or a delayed service delivery. We don’t hold these funds permanently, and we’re always reviewing your account performance to see if those controls can be reduced or removed over time.
What happens to reserved funds?
Reserved funds are set aside to help cover any potential refunds or chargebacks. If one comes up, the funds in reserve will be used right away to cover the amount. If no refunds or disputes occur, the reserved funds will be released in full at the end of the reserve period.
When is a reserve removed from your account?
When a reserve is placed on your account, you’ll receive an email outlining the details such as how much will be held and for how long.
A few days before the reserve is set to expire, we’ll complete a credit review to determine whether the reserve can be removed, reduced, or needs to be extended. This decision depends on several factors, including your business’s financial health, the number of chargebacks or refunds, and overall risk level.
In rare cases, a reserve may need to stay in place longer, or even remain in place indefinitely, if the level of risk stays high.
Why might a reserve be extended?
A few days before a reserve is set to expire, we’ll complete another review of your account to decide whether the reserve should be removed, reduced, or extended.
If there’s still an elevated level of risk (such as ongoing financial concerns, a high number of refunds or chargebacks, or other risk signals) the reserve may need to stay in place longer.
These decisions are based on your account’s overall risk profile. If you're looking to reduce the chance of an extension, see the tips below on how to lower your risk and keep your account in good standing.
How to reduce the risk level of your account
There are several steps you can take to build trust, reduce risk, and help avoid issues like chargebacks or fraud:
- Be clear and transparent with your policies. Make sure your refund, return, and cancellation policies are easy to find on your website, along with any shipping terms or money-back guarantees.
- Keep good records. Store receipts, agreements, and proof of delivery. For digital products or services, keep documentation that links usage back to your client.
- Make it easy for clients to reach you. Having a clear and responsive way for clients to contact you can help prevent chargebacks before they happen.
- Communicate delays proactively. If there’s a delay in providing a product or service, let your clients know right away. Clear communication helps manage expectations and builds trust.
- Respond to chargebacks quickly. If you receive a chargeback, reply as soon as possible. The sooner you respond, the better your chances of resolving it successfully.
Taking these steps helps keep your account in good standing and lowers the chance of needing a reserve or other risk-related review.