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

Key Terms

• Total Payment Volume: Gross amount of sales processed in the last 30 days (excluding refunds and fees)
• Processing: Completed payments being processed by the card network (1-2 days)
• Scheduled Transfer: Initiated funds in transit to your linked bank account

Automatic Debit Process When your account balance is negative at midnight UTC, funds are automatically debited from your linked bank account the next business day.

Failed Automatic Debits If an automatic debit fails:

• You can only issue refunds or receive transfers after covering the negative balance
• System makes three additional debit attempts after bank account update
• Account suspension occurs if not resolved within 20 business days

Resolution Steps

1. Update your linked bank account information
2. Wait for a successful automatic debit attempt
3. You'll receive email confirmation when the balance is settled

Account Suspension If negative balance remains unresolved for 20 business days:

• Online store payment processing stops
• Account dashboard access becomes limited
• Email instructions will be sent for resolving refunds and lifting suspension

Remember: A negative balance can be offset by pending sales funds. If the negative balance is covered before the automatic debit occurs, you'll receive a transfer of the funds instead.

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