Why do I have a negative balance on my platform?

Negative balance

A liable balance account can become negative due to various reasons.  For instance, not taking chargeback costs, processing fees, or FX costs into account when calculating a commission split. 

A negative balance can also be caused by deductions such as invoice deductions, leftovers, or deposit corrections.

For your account holders, a negative balance can only occur as a result of refunds or chargebacks. An account cannot have a negative balance due to payouts or fund transfers. You can only pay out or transfer the available balance. 

Adyen allows negative balances for up to 30 days. If an account has a negative balance for more than 30 days, Adyen will deduct the amount from your platform’s liable account to compensate for it. 

Alternatively, you can give account holders the option to cover their negative balances by adding funds to their accounts.

When Adyen compensates for a negative balance, you will see an entry in the Balance Platform Accounting Report  with category internal and type internalTransfer with a description or reference of "Negative Balance compensation for {AccountHolderId}". You will also receive the following transfer webhooks:

• balancePlatform.transfer.created

• balancePlatform.transfer.updated 

If you want Adyen to inform your system when an account on your balance platform has a negative balance for over 20 days, you can configure a negative balance compensation warning webhook.