Rolling reserves are a standard feature of conventional high risk merchant accounts and are particularly significant for MATCH list merchant accounts, where the acquiring bank imposes them at elevated percentages to buffer against the compounded risk of serving a listed merchant. A conventional MATCH list merchant account might require a rolling reserve of ten percent or more of processing volume, held for 180 days or longer, which at any given time means the merchant has a significant portion of its processing revenue locked in an account it cannot access. For businesses that have already been through the financial disruption of a processor termination and MATCH list placement, a large rolling reserve creates an additional cash flow burden at precisely the moment the business can least afford it.
The MATCH list crypto merchant account 27 Blockchain provides does not require a rolling reserve because the chargeback liability that rolling reserves are designed to buffer does not apply to blockchain-based transactions. Confirmed cryptocurrency payments cannot be reversed through a bank dispute process, which means there is no unilateral reversal exposure that the acquiring bank needs to hold reserves against. The merchant receives the full settlement value of confirmed transactions on the schedule established at integration. For MATCH list merchants who have been through the rolling reserve experience in a previous conventional high risk processor relationship, the absence of a reserve requirement in the 27 Blockchain merchant account arrangement has a direct and immediate positive effect on operating cash flow.
