How a rolling reserve works mechanically
Every day's batch settles to the merchant minus the reserve withholding. After 180 days, each day's reserve is released back to the merchant — so the reserve "rolls" forward continuously. The total amount held is roughly: monthly volume × reserve percentage × 6 months.
For example, a $100K/month merchant at a 15% reserve — a figure inside the range often quoted in the industry, not a PeptideApprove rate — equals $90,000 of locked working capital at steady state. For a $500K/month merchant at that same example percentage, $450,000. PeptideApprove sets any reserve after underwriting.
Why reserves exist
Acquirers carry the legal liability for chargebacks. If a merchant fails after taking customer money, the acquirer reimburses the cardholders. The reserve is the acquirer's collateral against that exposure. The longer the reserve schedule, the better the acquirer is protected — and the worse the merchant's cash position.
What 180 days does to a growing brand
The 180-day reserve is engineered for the wrong cash-flow scenario. A peptide brand growing 20% month-over-month is producing more reserve obligations than reserve releases at every point — meaning the locked capital grows continuously rather than stabilizing. Generalist high-risk processors do not adjust for this.
How PeptideApprove handles reserves
PeptideApprove does not publish a card rate. Reserve requirements, if any, are determined by KYC/KYB, product category, chargeback profile, partner review, and written program terms.