What is a Deposit correction?

What is a deposit correction?

Deposit corrections are seen when funds are moved in and out of the deposit. This can happen due to the deposit threshold being increased or decreased based on the Merchant Potential Liability (MPL) tool.

The MPL estimates the total exposure Adyen has for each merchant account based on the actual transaction data. This tool runs daily and always before the merchant payout is processed to ensure that the exposure on your merchant account is not higher than the current coverage by a threshold of EUR 10,000.00.

For example, if the total exposure exceeds the total coverage by more than EUR 10,000.00, the MPL tool automatically withholds funds from the settlement to cover the net exposure on the account.

Debit deposit correction

A debit deposit correction means funds are moving from the payable into the deposit to compensate for the exposure and a credit deposit correction implies funds are moving back from the deposit into the payable as the exposure has now been balanced.

The funds held by Adyen in the deposit are still owned by you. If you cease to transact on the platform, the deposit will be gradually paid back net of chargeback costs. Once Adyen has no more exposure to chargebacks (around 6 months after processing has stopped), the remaining deposit will be returned.