A reserve is to make sure that the funds are there to cover the check in the eve... | Hacker News

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		joshmanders on July 28, 2022 \| parent \| context \| favorite \| on: TIFU by using Stripe as a payment processor for my... A reserve is to make sure that the funds are there to cover the check in the event it may bounce. Checks do not take 120+ days to complete.

thallium205 on July 28, 2022 [–]

Credit card chargebacks can be initiated a half a year or more after a transaction has occured so yes, the reserve is in place to reduce the risk of losing money of the merchant bank from this event.

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