Why reserves exist
Card transactions can be reversed weeks after they happen. Reserves protect partners and the platform against losses from refunds, chargebacks, fraud, and merchant insolvency. They are baked into how the card industry works.
A reserve is a portion of settlement held back to cover refunds, chargebacks, and compliance risk. It is standard practice across regulated payment processing.
Card transactions can be reversed weeks after they happen. Reserves protect partners and the platform against losses from refunds, chargebacks, fraud, and merchant insolvency. They are baked into how the card industry works.
A percentage of each settlement is held for a defined period (for example, 5% held for 90 days). After the holding period, that portion releases to your normal payout. The exact rate and period depend on country, merchant category, processing history, and partner requirements.
On account opening for higher-risk categories, after sudden volume changes, after elevated chargeback or refund rates, and when partner-side rules require it. We try to communicate changes in advance where possible.
Have a question about a reserve?
Contact PayKato support and we'll walk through your specific reserve setup.
PayKato is built to integrate with licensed payment processors and banking partners. Specific processors and availability are confirmed during onboarding based on country, merchant category, and partner approval. PayKato is not a bank and does not hold customer funds.