Why Your Payout Balance May Be Negative
If you notice that your payout balance is negative, don’t worry — this usually happens for a few common reasons, such as refunds or disputes. Below, we’ll explain why this occurs and what it means for your payouts.
1. Refunds You’ve Recently Processed
Refunds reduce your payout balance. Depending on your current balance, this can either reduce the amount you’ll be paid out or create a temporary negative balance.
If you have a positive payout balance
The refund amount is deducted from your balance.
Any remaining balance is sent to your bank account on your next scheduled payout date.
Example:
Payout balance: $110
Refund: $50 → New balance: $60 → paid out the next business day.
If your payout balance is $0
The refund amount creates a negative balance.
As you continue to process payments, new funds first cover the negative balance before future payouts are sent.
Example:
Balance: $0
Refund: $100 → new balance = -$100
Next payment received: $110 → new balance = $10 → paid out next business day.
2. A Dispute Was Recently Settled Against Your Business
If a dispute (chargeback) is decided in favour of the client, the disputed funds are returned to the cardholder. This works just like a refund and may create a negative payout balance.
If your balance is positive: The disputed amount is deducted from your balance.
If your balance is $0: The disputed amount creates a negative balance, which will carry forward until covered by new payments.
👉 To learn more about the dispute process, click here.