If your Available balance is insufficient for a payout, Checkout.com allows it to go overdrawn up to the amount available in your Operational balance. Here is how the process works and what to expect if funds are low:
- Overdrawn balance limit: Payouts can be processed even if the Available balance goes overdrawn, as long as it doesn’t exceed the Operational balance.
- Payouts decline on insufficient funds: If a payout request causes the Available balance to go overdrawn beyond the Operational balance, it will be declined due to insufficient funds.
When inbound funds from payment processes with Checkout.com are credited to your account, they will:
- Restore the overdrawn Available balance.
- Replenish the Operational balance, ensuring you have sufficient funds for future payouts.
Example
Consider the scenario where your Checkout Business Account has:
- Operational balance: $10,000.00
- Available balance: $2,000.00
You initiate a payout of $5,000.00. Here’s how the process unfolds:
- Overdrawn Available balance: Since your Available balance is only $2,000.00 it will go overdrawn to -$3,000.00 to accommodate the $5,000.00 payout. This is because Operational balance is $10,000.00 so your overall balance is positive and the overdrawn Available balance is permitted.
- Inbound payments to replenish balance: A few days later, your business receives $6,000.00 from processed payments. This amount is credited to your Available balance, clearing the -$3,000.00 overdrawn and leaving $3,000.00 in Available balance.
- Updated balances:
- Available balance: Now $3,000.00
- Operational balance: Remains $10,000.00