If your Available balance is insufficient for a Bank Payout or Card Payout, Checkout.com allows it to go negative so long as the deficit does not exceed the amount held in your Operational balance.
If a payout request would cause the Available balance to go negative and the deficit:
- Does not exceed the amount in the Operational balance – The payout is processed successfully and the Available balance goes negative.
- Exceeds the amount in the Operational balance – The payout is declined due to insufficient funds.
When inbound funds from processed payments are credited to your account, they are added to:
- The Available balance until it is positive again
- The Operational balance, if required, to ensure you have sufficient funds for future payouts
Example
You have the following balances:
- Available – $2,000.00
- Operational – $10,000.00
You initiate a payout of $5,000.00.
Since your Available balance is only $2,000.00, it goes negative to -$3,000.00 and the $5,000.00 payout is processed successfully. This is because there are sufficient funds in the Operational balance.
A few days later, you receive $6,000.00 from processed payments. This amount is credited to your Available balance, clearing the -$3,000.00 deficit and leaving the balance positive $3,000.00.
Your balances are as follows:
- Available – Updated to $3,000.00
- Operational – Remains $10,000.00