---
title: "Reserve"
description: "Make sure that you always have enough funds for refunds, chargebacks, and other operational expenses."
url: "https://docs.adyen.com/account/balances/reserve"
source_url: "https://docs.adyen.com/account/balances/reserve.md"
canonical: "https://docs.adyen.com/account/balances/reserve"
last_modified: "2023-08-28T17:50:00+02:00"
language: "en"
---

# Reserve

Make sure that you always have enough funds for refunds, chargebacks, and other operational expenses.

[View source](/account/balances/reserve.md)

Setting up a reserve helps make sure you always have enough funds for refunds, chargebacks, and other operational expenses.

For example, when you refund a payment, the funds are deducted from your pending and next payout balances. If you have insufficient funds in both your pending and next payout balance to process the refund, the refund amount is deducted from the reserve. If you have not set up a reserve, or if the reserve does not have enough funds for the refund either, the refund fails.

Adyen does not automatically retry refund requests that failed due to insufficient funds. When enough funds are available again, resubmit the failed refund request.

An overview of all refunds that were not processed due to insufficient funds is available in the [Modifications not processed](/reporting/modifications-not-processed/) report.

## Requirements

Before you begin, take into account the following requirements, limitations, and preparations.

| Requirement                                                               | Description                                                                                                                                                                                   |
| ------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Integration type**                                                      | An [online](/online-payments) or [point-of-sale](/point-of-sale) integration with Adyen.                                                                                                      |
| **[API credential roles](/development-resources/api-credentials/roles/)** | To [manage your reserve using the API](#transfer-balance), make sure you have the credentials for Balance Control API with the following role:- **Balance control API - Balances management** |
| **[Customer Area roles](/account/user-roles)**                            | To manage your reserve using the Customer Area, make sure that you have one of the following roles:- **Merchant financial**
- **Merchant admin**                                              |

## Set up a reserve

Setting up a reserve means defining a threshold. The threshold is the amount that you want to be available in the reserve. The amount that is needed to fill the reserve up to this threshold is deducted from your payable balance when the [payout batch](/account/sales-day-payout) closes.

To set up a reserve, you need the following [user role](/account/user-roles):

* **Merchant financial**

To set up a reserve for a merchant account, in your [Customer Area](https://ca-test.adyen.com/):

1. Switch to the merchant account.
2. Go to **Finance** > **Balances overview**.
3. On the **Balance** tab, at **Reserve** select **Edit threshold**.
4. Under **Change reserve threshold** enter the amount that you want to be available in the reserve.
5. Select **Save**.

## Receive notifications about your reserve

We can send you a [Customer Area notification](/account/notification-center) when the reserve balance drops below a certain percentage of the reserve threshold. For example, if you set the percentage to **30%** and the reserve threshold is **EUR 1200**, you get a notification when the reserve balance drops below **EUR 360**.

To receive notifications when the reserve balance drops below a certain value, in your [Customer Area](https://ca-test.adyen.com/):

1. Switch to the merchant account.
2. Go to **Finance** > **Balances overview**.
3. On the **Balance** tab, at **Reserve** select **Edit threshold**.
4. Switch on the **Low reserve balance alert (%)** toggle to enable [Customer Area notifications](/account/notification-center).
5. Select **Save**.

## Add funds to your reserve

You have the following options to add funds to your reserve:

* [Increase the threshold](#threshold): the amount needed to fill the reserve is deducted from the payable balance.
* [Set up auto-funding](#auto-funding): the amount needed to fill the reserve is debited from your bank account.
* [Top up your Adyen account](#top-up): for payments made in **EUR** or **USD**, the funds are added to your reserve within two business days. For most other currencies, the funds are added to your reserve within three business days.
* [Make a transfer from another merchant account](#transfer-balance): the amount needed to fill the reserve is transferred from your other merchant account that has more funds available.

### Change the reserve threshold

This is what happens when you change the reserve threshold:

* If you **increase the threshold**, the amount needed to fill the reserve up to the new threshold is deducted from your payable balance when the payout batch closes.
* If you **lower the threshold**, the amount above the new threshold is added to your payable balance when the payout batch closes.

For example, if you start with a threshold of **EUR 7000** and increase it to **EUR 9000**, we move **EUR 2000** from the payable to fill the reserve. If you lower the threshold of **EUR 7000** to **EUR 4000**, we move **EUR 3000** from the reserve to your payable balance.

To change the reserve threshold, you need the following [user role](/account/user-roles):

* **Merchant financial**

To change the reserve threshold for a merchant account, in your [Customer Area](https://ca-test.adyen.com/):

1. Switch to the merchant account.
2. Go to **Finance** > **Balances overview**.
3. Select **Control your balances**.
4. Under **Reserve balance**, select **Change threshold**.
5. Enter the new threshold and select **Save**.

### Set up auto-funding

With auto-funding, we initiate a direct debit payment when a certain percentage of the reserve has been used. For example, if you set the percentage to **30%** and the reserve threshold is **EUR 1200**, automatic funding is triggered when the reserve balance drops below **EUR 840**. We then initiate a direct debit payment to fill the reserve up to the threshold value of **EUR 1200**.

The amount needed to fill the reserve is debited from the bank account where you receive the payouts for this merchant account. You can only use auto-funding for payout bank accounts in **EUR**, **GBP**, or **USD**.

To set up auto-funding, you need both the [user roles](/account/user-roles):

* **Merchant financial**
* **Merchant admin**

To set up auto-funding for a merchant account, in your [Customer Area](https://ca-test.adyen.com/):

1. Switch to the merchant account.
2. Go to **Finance** > **Balances overview**.
3. Select **Control your balances**.
4. Under **Auto-funding**, select **Request**.
5. Under **Request auto-funding**, enter a number to indicate a percentage of the reserve threshold.\
   For example, enter **30** to trigger automatic funding when **30%** of the reserve threshold has been used.
6. Select **Request auto-funding**.

### Top up your Adyen account

The fastest way of transferring funds to your account is to generate a top-up payment. When we receive the top-up payment, we add the funds to your reserve. This can take up to four business days. Any amount above the reserve threshold is transferred back to you with the next payout. Therefore, you may need to [change the reserve threshold](#threshold).

For some currencies, for example **ZAR**, you need to [use specific details](https://help.adyen.com/knowledge/payments/refunds/how-can-i-transfer-funds-into-my-adyen-account) for your bank transfer.

To generate a top-up payment, you need the following [user role](/account/user-roles):

* **Merchant financial**

To transfer funds into your Adyen account, in your [Customer Area](https://ca-test.adyen.com/):

1. Switch to the merchant account.
2. Go to **Finance** > **Balances overview**.
3. Select **Top up**.
4. Select the reason for your top-up payment.
5. Select the currency and enter the amount that you want to add to the reserve.
6. Select **Top up with your bank account** or **Other top up methods**.
7. In the new window that opens, complete the payment.

For payments made in **EUR** or **USD**, the funds are added to your reserve within two business days. For most other currencies, the funds are added to your reserve within three business days.

If you fund your account in a currency different from your reserve currency, this will credit your payable instead of your reserve. This is done to offset any negative payable amounts in that particular currency.

### Make a transfer from another merchant account

##### Use an API to transfer balance

Automate the process or build your own implementation with the [/balanceTransfers](https://docs.adyen.com/api-explorer/BalanceControl/latest/post/balanceTransfers) endpoint.

You can transfer balance between two merchant accounts under the same company account and legal entity. For this to work, these two merchant accounts must have at least one common processing currency. This currency is used to transfer balance.

You can transfer balances using the Customer Area or the Balance Control API.

### Tab: Customer Area

To transfer balances using the [Customer Area](https://ca-test.adyen.com/), you need the following [user role](/account/user-roles):

* **Merchant financial**

To make a funds transfer from one merchant account to another, in your [Customer Area](https://ca-test.adyen.com/):

1. Switch to the merchant account which you want to transfer the balances *from*.
2. Go to **Finance** > **Balances overview**.
3. Select **Transfer balance**.
4. Select the currency and enter the amount that you want to transfer.
5. Select the destination account: the merchant account that you want to transfer the amount to.
6. Optional: Deselect **Reconfigure reserve if necessary**, if you do not want to change the configured [reserve threshold](#threshold) of the destination account.
7. Select **Move**.

### Tab: Balance Control API

To make a funds transfer using the Balance Control API, you need the following [user role](/account/user-roles):

* **Balance control API - Balances management**

To transfer balance from one merchant account to another:

1. Make a POST `/balanceTransfer` request. In the request body, specify the following parameters:

   | Parameter         | Required                                                                                                      | Description                                                                               |
   | ----------------- | ------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- |
   | `amount.value`    | ![Required](/user/pages/reuse/image-library/01.icons/required/required.svg?decoding=auto\&fetchpriority=auto) | The amount of the balance transfer, in minor units.                                       |
   | `amount.currency` | ![Required](/user/pages/reuse/image-library/01.icons/required/required.svg?decoding=auto\&fetchpriority=auto) | The currency of the balance transfer.                                                     |
   | `fromMerchant`    | ![Required](/user/pages/reuse/image-library/01.icons/required/required.svg?decoding=auto\&fetchpriority=auto) | The unique identifier of the source merchant account from which funds are deducted.       |
   | `reference`       |                                                                                                               | Your reference for the balance transfer. **Format**: Maximum length: 80 characters.       |
   | `toMerchant`      | ![Required](/user/pages/reuse/image-library/01.icons/required/required.svg?decoding=auto\&fetchpriority=auto) | The unique identifier of the destination merchant account to which funds are transferred. |
   | `type`            | ![Required](/user/pages/reuse/image-library/01.icons/required/required.svg?decoding=auto\&fetchpriority=auto) | The type of balance transfer. Set this to **credit**.                                     |

   The following example shows how to transfer funds from **MerchantAccount1** to **MerchantAccount2**.

   ```bash
   curl https://balance-control-test.adyen.com/balance-control/api/v2/balanceTransfers \
   -H 'x-api-key: ADYEN_API_KEY' \
   -H 'content-type: application/json' \
   -X POST \
   -d '{
          "amount": {
             "currency": "EUR",
             "value": 3000
          },
          "reference": "Your reference for the balance transfer",
          "fromMerchant": "MerchantAccount1",
          "toMerchant": "MerchantAccount2",
          "type": "credit"
   }'
   ```

2. Verify that you receive a response with HTTP status **200**, that includes the following parameters:

   | Parameter      | Required                                                                                                      | Description                                                           |
   | -------------- | ------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- |
   | `pspReference` | ![Required](/user/pages/reuse/image-library/01.icons/required/required.svg?decoding=auto\&fetchpriority=auto) | A 16-character unique reference associated with the balance transfer. |
   | `createdAt`    | ![Required](/user/pages/reuse/image-library/01.icons/required/required.svg?decoding=auto\&fetchpriority=auto) | The date and time at which the balance transfer was performed.        |

   The following example shows the response that you receive after you send a successful request.

   ```bash
   {
    "pspReference": "993617895204576J",
    "createdAt": "2025-10-29T10:30:00.275+00:00"
   }
   ```

The transfer is initiated immediately, and the funds are deducted from the pending balance of the source merchant account. However, it can take up to one hour for the funds to become visible on the pending balance of the target merchant account.

## See also

* [Monthly finance report](/reporting/monthly-and-daily-finance-report)
* [Account structure](/account/account-structure)
