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

Key Terms

• 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-debits occur.

Failed Auto-Debits

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

• You cannot issue refunds or receive payouts
• Squarespace attempts up to three more debits after bank account updates
• Account suspension occurs if unresolved after 20 business days

Resolving Negative Balances

1. Update your connected bank account
2. Wait for successful auto-debit attempt
3. Watch for email confirmation of cleared balance

During Account Suspension

• Online store payment processing stops
• Account dashboard access becomes limited
• You'll receive email instructions for repayment
• Store functionality resumes after balance resolution

If your negative balance resolves before the scheduled auto-debit, you'll receive those funds as a payout instead.

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