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 to manage and resolve these situations is crucial for maintaining smooth business operations.

Key Terms to Understand:

• Total Payment Volume: Gross sales processed in the last 30 days (excluding refunds and fees)
• Currently Processing: Completed payments being processed by the card network (1-2 day processing time)
• Upcoming Payout: Initiated funds transfer to your linked bank account

Automatic Debit Process:

• Negative balances are automatically debited from your linked bank account if not resolved by midnight UTC
• The debit occurs on the next business day
• Outstanding sales funds can offset negative balances

Failed Automatic Debits:

1. Immediate Effects:

• Cannot process refunds
• Cannot receive payouts
• Payment processing continues

2. Resolution Process:

• Up to 3 additional debit attempts after updating bank account
• Must update linked bank account information
• Email notification sent upon successful resolution

Account Lockout:

• Occurs after 20 business days of unresolved negative balance
• Restricts payment acceptance
• Limits dashboard functionality
• Requires following specific repayment steps provided via email

Prevention Tips:

• Maintain sufficient funds in linked bank account
• Monitor account balance regularly
• Keep bank account information current
• Address negative balances promptly

Note: If your negative balance clears before the automatic debit occurs, you'll receive a payout of that amount instead.

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