What Is a PayPal Rolling Reserve?
A PayPal rolling reserve means PayPal temporarily withholds a percentage of each payment you receive and releases it after a fixed time period, usually 90 days.
The money is not taken from you. It is held for safety and then returned if no issues occur.
How a PayPal Rolling Reserve Works (Step by Step)
- You receive a payment
- PayPal withholds a percentage (for example, 10 percent)
- The remaining amount is available to you immediately
- The withheld portion is held for a set period
- After the holding period, the funds are released automatically
Each payment has its own release date, which is why it is called a rolling reserve.
Example of a PayPal Rolling Reserve
- You receive $1,000 in payments
- Rolling reserve rate is 10 percent
- PayPal holds $100
- You can use $900 immediately
- The $100 is released after 90 days
If you receive another payment tomorrow, that payment starts its own 90-day timer.
Why PayPal Uses a Rolling Reserve
PayPal applies rolling reserves to reduce risk. Common reasons include:
- New seller account
- Sudden increase in sales volume
- High refund or dispute rate
- Selling digital goods or subscriptions
- Long delivery or preorder timelines
It is a preventive measure, not a punishment.
How Long Does a Rolling Reserve Last?
Most rolling reserves last 30 to 90 days, but PayPal may keep it longer if risk factors remain. Accounts are reviewed regularly, and reserves can be adjusted or removed automatically.
Where Can You See Your Rolling Reserve?
You can check your rolling reserve details in:
- PayPal Dashboard
- Account notifications
- Seller or account settings
It will show:
- Reserve percentage
- Amount currently held
- Release timeline
Can You Withdraw Money Under a Rolling Reserve?
Yes, but only the available balance.
The reserved portion cannot be withdrawn or spent until it is released.
How to Reduce or Remove a PayPal Rolling Reserve
You can lower the chances of a rolling reserve by:
- Keeping disputes and chargebacks low
- Providing tracking and delivery confirmation
- Avoiding sudden spikes in sales
- Delivering products on time
- Maintaining consistent selling activity
You can also contact PayPal support and request a review once your account stabilizes.
Is a PayPal Rolling Reserve a Bad Sign?
No. Many legitimate businesses experience rolling reserves, especially early on. As trust builds and transaction history improves, the reserve is often reduced or removed.
Key Takeaway
A PayPal rolling reserve means PayPal holds a portion of each payment temporarily to protect against refunds and disputes. The funds are released automatically after the holding period if everything goes smoothly.