A negative balance in your Squarespace Payments account occurs when your total account balance falls below zero, typically due to refunds or chargebacks. Understanding how this works is crucial for managing your online business effectively.

Key Terms to Know

• Total Payments Volume: Gross sales processed in the last 30 days (excluding refunds and fees)
• Currently Processing: Completed payments being processed through the card network (1-2 days)
• Upcoming Payout: Initiated funds in transit to your connected bank account

Auto-Debit Process

When your account has a negative balance at midnight UTC, Squarespace automatically debits the amount from your linked bank account the next business day. Pending sales can clear negative balances before auto-debit occurs.

Failed Auto-Debits

If an auto-debit fails (due to insufficient funds or closed account):

• Refunds and payouts are suspended
• Up to three additional attempts are made
• You must update your bank account information
• Email notification sent when balance is cleared

Account Suspension

Your account faces suspension if:

• Auto-debit remains unresolved for 20+ business days
• Your online store cannot accept payments
• Dashboard access becomes limited
• You'll receive email instructions for repayment

Resolution Steps

1. Update your connected bank account information
2. Wait for successful auto-debit attempt
3. Monitor email notifications about balance clearance
4. If balance resolves before auto-debit, funds will be paid out

This system ensures financial stability while protecting both merchants and customers in the Squarespace payment ecosystem.

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