Why do Merchant Accounts Sometimes Require Reserves?

Merchant Accounts may require reserves when banks or processors determine that additional risk protection is necessary based on factors such as Chargebacks exposure, delayed fulfillment, subscription billing, transaction volume, or business history.

Reserves are not a penalty. They are a risk control designed to ensure funds are available if customer disputes or refunds occur. Reserve requirements are determined during Underwriting or introduced later if risk conditions change.

Easy Pay Direct helps merchants understand why a reserve is required and how it impacts cash flow, but does not mandate reserve decisions.