A negative balance in your Squarespace Payments account occurs when your total account balance falls below zero, typically due to refunds or chargebacks. Here's what you need to know about managing and resolving negative balances.

Key Terms to Understand:

• Total payment volume: Gross sales processed in the last 30 days (before refunds and fees)
• Currently being processed: Completed payments moving through the card network
• Upcoming payout: Money being transferred to your linked bank account

Automatic Deductions:

• If your account has a negative balance at midnight UTC, the amount is automatically deducted from your linked bank account the next business day
• Outstanding funds from sales can offset negative balances
• Payouts are typically processed within 1-2 days

Failed Automatic Deductions:

• When a deduction fails, you cannot process refunds or receive payouts
• Common causes include insufficient funds or closed bank accounts
• Up to three additional deduction attempts will be made after updating your bank account
• You'll receive an email notification when the negative balance is cleared

Account Lockdown:

• Your account will be locked if the negative balance remains unresolved for 20+ business days
• During lockdown:
  • Online store cannot accept payments
  • Account dashboard access is restricted
  • You'll receive email instructions for repayment

To Resolve a Negative Balance:

1. Update your linked bank account information
2. Wait for the next automatic deduction attempt
3. Monitor your email for confirmation of balance clearance
4. If the balance is settled before the automatic deduction, you'll receive a payout

Note: Maintaining sufficient funds in your linked bank account and monitoring your balance regularly can help prevent negative balance issues.

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