Depending on the industry your business operates in, Mamo might deem it necessary to apply a rolling reserve to your account. Rolling reserves help protect payment providers from financial risk, allowing them to keep offering their services to businesses like yours safely and reliably.
What is a rolling reserve?
A rolling reserve is a portion of your sales that Mamo temporarily holds to protect against chargebacks and disputes. It applies mainly to businesses where there’s a higher risk of customer disputes. The money gets returned to you directly after a pre-defined period of weeks.
How does a rolling reserve work?
A percentage of each payment transaction you process is set aside in a reserve account.
The funds remain in the reserve for a period of time before being released back to your Mamo balance.
The reserve is "rolling" because as transactions pass the holding period, those funds are returned to you continuously.
How much money is held, and for how long?
We determine the percentage and duration based on our industry calculator and our Risk team’s criteria on a case-by-case basis.
In most standard rolling reserve setups:
Between 10-25% of each transaction (before fees) is held in a reserve account.
Funds are released after ~26 weeks (6 months).
The 6-month period aligns with the timeframe cardholders have to dispute a charge.
Funds that are in the reserve account cannot be settled, used for payouts or card top-ups, until it is release back to your Mamo balance.
Where can I track the rolling reserve amounts?
The reserved and released amounts will appear in the breakdown of your settlement statement, as well as in your Finances balance sheet in your Mamo dashboard.
Reserved funds will be displayed as
Rolling reserveReleased funds will be displayed as
Rolling reserve released
Will chargebacks be paid from the reserve account?
Should you face any disputes or chargebacks while your account is active, repayments will still be debited from your Mamo account. It’s only in the event that your Mamo account is closed or your balance is in the negative, that we would draw funds from the reserve account. The reserve account simply acts as an insurance policy for Mamo.
Can the rolling reserve be removed?
A rolling reserve is not always permanent. If your chargeback rate decreases over time, Mamo’s Risk and Compliance team may lower the percentage or remove the reserve altogether. This is reviewed periodically and on a case-by-case basis.
What if I do not agree to a rolling reserve?
A rolling reserve is a standard security measure put in place to protect your business and ours. If you do not agree to having rolling reserve applied to your account, we won’t be able to provide our services to you.
What if I close my account?
If you close your Mamo account while funds are still in the reserve, they’ll be held for the full reserve period and then returned to you as a settlement.
If your account is suspended due to suspected fraud, Mamo may hold the rolling reserve, along with all other funds in your Mamo balance, for an extended period as outlined in our Terms and Conditions.