How GOAT Payments Helps Merchants Navigate High Reserves and Unlock Additional Working Capital

For many merchants, especially those in high-risk industries, high processing reserves can feel like a constant burden. Your processor holds back a portion of your funds as a “reserve” to cover any potential chargebacks, fraud, or processing issues. While this is common practice, it can often lead to cash flow challenges—money that could be better used to fuel your business growth is tied up in a reserve account, out of your immediate reach.

At GOAT Payments, we specialize in helping merchants manage and mitigate these risks by offering comprehensive advisory services designed to optimize processing reserves, reduce reserve percentages, and ultimately unlock working capital that can be reinvested into marketing, e-commerce expansion, and business development.

Here’s how we can help your business access additional working capital and reduce reliance on high reserves:

1. Risk Mitigation Strategies That Lower Reserve Percentages

   The first step in freeing up your working capital is to assess the risk mitigation strategies that may be available to reduce your reserve percentage. High reserves are often tied to perceived business risk, but many merchants can successfully reduce their reserves with the right strategies in place. At GOAT Payments, we work with merchants to implement effective risk mitigation strategies that make your processing history more predictable and secure. These strategies can include:

   • Chargeback Prevention: We help you identify and mitigate sources of chargebacks by optimizing your payment processes, improving your customer service, and offering fraud protection tools.
   • Compliance Assurance: Ensuring that your business is fully compliant with industry regulations (such as PCI DSS standards) can reduce the likelihood of issues that might lead to higher reserves.
   • Transaction Monitoring: We provide tools for monitoring high-risk transactions in real-time, helping you address issues proactively before they escalate.

   By implementing these strategies, you can demonstrate to your processor that your business is low-risk and capable of maintaining healthy chargeback ratios, which may lead to a reduction in the percentage of funds held in reserve.

2. Review of Your Current Reserve Setup for Possible Reductions

   Many merchants are unaware that their processor’s reserve percentage can be negotiated or reduced over time. As your business grows and demonstrates a stable processing history, the amount held in reserve can often be adjusted. This is where GOAT Payments steps in. We’ll conduct a thorough review of your current reserve structure and work with you to prepare a case for reserve reduction. Our advisory team will analyze your historical processing data, chargeback history, and current risk mitigation measures, and then guide you through the process of approaching your processor to request a reduction in the reserve. This can provide an immediate influx of capital, giving your business more flexibility in managing cash flow and investing in opportunities for growth.

3. Reinvesting Working Capital for Marketing, E-Commerce Growth, and Business Development

   When your processing reserves are reduced, the money that was once tied up with your processor is now available to reinvest into critical areas of your business. With GOAT Payments, we don’t just stop at freeing up working capital—we help you make the most of it.

   • Marketing Growth: Use the additional funds to launch targeted advertising campaigns, build brand awareness, and reach new customers. Whether it’s digital ads, social media marketing, or influencer partnerships, more capital means more opportunities to grow.
   • E-commerce Expansion: Invest in your online presence by optimizing your website, improving the user experience, and scaling your e-commerce platform. From SEO to website redesigns and checkout process enhancements, reinvestment in your e-commerce operations can yield long-term growth.
   • Business Development: Expand your product or service offerings, hire new talent, or open new locations—there are many ways you can put this additional working capital to work to help you scale your business.

   With GOAT Payments, we provide you with the support you need to navigate your payment processing while also empowering you to allocate your funds effectively toward growth.

4. Building a Long-Term Partnership for Ongoing Support

   Unlike other payment processors who may only be interested in short-term transactions, GOAT Payments is dedicated to forming long-lasting partnerships with our merchants. We see your growth as our growth, and we work alongside you to ensure your business remains healthy and compliant over the long term. Our team will continue to monitor your processing volume, reviewing it periodically to ensure you always receive the best rates and lowest reserve percentages possible. As your business evolves, we’ll provide ongoing advisory services, from helping you refine risk management strategies to advising on future growth opportunities. This continuous partnership allows us to adjust your payment solutions as needed, ensuring that your processing remains flexible and optimized for growth.

5. Compliance and Consulting for Sustainable Growth

   Lastly, we understand that compliance is key to maintaining healthy relationships with payment processors and staying ahead of industry regulations. At GOAT Payments, our team of experts offers compliant consulting and helps you stay on top of the latest rules and regulations in the payments space. By staying compliant, you reduce the risk of future high reserves or potential termination of your merchant account. High processing reserves can feel like an obstacle, but they don’t have to hold your business back. With GOAT Payments on your side, you can reduce your reserves, unlock additional working capital, and reinvest that capital into areas that will drive business growth. Through expert risk mitigation, a thorough review of your current reserves, and ongoing consulting and advisory services, we help you ensure your processing setup is optimized for success. As your trusted partner, we will continue to work with you to achieve sustainable growth, lower reserves, and more financial flexibility to fuel your marketing efforts, e-commerce growth, and long-term success.

   Ready to reclaim your capital? Contact GOAT Payments at info@goatpayments.com today and start a conversation about reducing your processing reserves and maximizing your business potential.