When reviewing your X-1PAY disbursement reports, you may occasionally see entries labeled RSRV or COVR. These are payment processor adjustments that can affect the amount deposited into your bank account.
What is RSRV?
RSRV stands for Reserve.
A reserve is a portion of processed funds that the payment processor temporarily withholds as a risk management measure. These funds help cover potential future liabilities such as:
Chargebacks
Customer disputes
Refunds
ACH returns
Fraud-related activity
The funds are not permanently deducted and are typically released in future disbursements once the processor determines the risk has passed.
Why does the reserve amount vary?
The reserve amount is dynamic, meaning it can change from one disbursement to another and may not appear on every payout.
Factors that can influence whether a reserve is applied include:
Processing volume
Chargeback history
Refund activity
Overall account risk during the settlement period
Because reserves are calculated based on overall processing activity, the percentage withheld may vary over time.
Is RSRV tied to a specific invoice?
No.
Reserve amounts are calculated based on the total processing volume during a settlement period and are not associated with individual customer invoices or transactions. As a result, it is not possible to identify a specific invoice that corresponds to an RSRV entry.
Example
If a disbursement report shows:
Code | Description | Amount |
RSRV | Reserve Withheld | $3,000.51 |
This means the payment processor temporarily withheld $3,040.51 from that payout. The funds remain on your merchant account and are typically released in a future disbursement.
What is COVR?
COVR stands for Carryover.
A carryover represents a balance or adjustment from a previous settlement period that is being applied to a future disbursement.
Unlike a reserve, which is a temporary hold for risk management purposes, a carryover reflects an amount that was previously deferred and is now being accounted for in the current funding cycle.
Why does COVR appear?
A carryover may appear when:
A prior adjustment could not be fully applied during an earlier settlement period.
A processor adjustment is carried into a subsequent funding cycle.
Settlement timing causes balances to roll into a future disbursement.
Is COVR tied to a specific invoice?
No.
Similar to reserves, carryover entries are generally processor-level adjustments and are not directly linked to individual invoices within X-1FBO.
Example
If a disbursement report shows:
Code | Description | Amount |
COVR | Carryover Adjustment | $1,200.23 |
This indicates that a prior balance or adjustment of $1,238.23 was carried forward and applied during the current disbursement cycle.
Reconciling RSRV and COVR in X-1FBO
From an Accounts Receivable perspective, RSRV and COVR entries are generally not applied to specific customer invoices.
If your FBO needs to account for these processor adjustments within X-1FBO, they should typically be recorded using the Other Fee section when applying the payment rather than allocating the amount to an individual invoice.
Summary
Code | Meaning | Description |
RSRV | Reserve | Funds temporarily withheld by the payment processor to cover potential risk such as chargebacks, refunds, or disputes. Released in future disbursements. |
COVR | Carryover | A balance or adjustment carried forward from a previous settlement period and applied to a future disbursement. |
If you have questions regarding a specific RSRV or COVR adjustment, please contact X-1 Support and provide the applicable disbursement report for review.