Why do I have a negative balance on my platform?

Negative balance

A negative liable balance can be caused by multiple reasons. Some of these are: not taking chargeback costs, processing fees, or FX costs into account when calculating a commission split.

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 labeled internalTransfer? in an entry of category internal and type internalTransfer with a description or reference of "Negative Balance compensation for {AccountHolderId}". The description of reference for this entry will indicate that it’s a Negative Balance compensation for {accountHolderId}.

Note that negative balances only occur as a result of refunds or chargebacks. An account cannot have a negative balance due to paying or transferring a balance. You can only pay out or transfer the available balance.