A Negative Balance occurs when your Account Balance drops below zero. This article explains why this happens, how it affects your ability to process refunds or receive payouts, and the steps required to return your balance to positive.
Why negative balances happen
A Negative Balance happens when money leaves your Account before enough customer Payments have been settled. This means there is temporarily not enough money available in your Account. It typically occurs for one of the following reasons:
- Refunds before Settlement: If you issue a Refund before the original Payment settles, the funds are deducted from your current balance. If your balance is low, this deduction can drop it below zero.
- Chargebacks or deductions: Deductions such as Chargebacks or adjustments reduce your Account Balance. If these deductions exceed your available funds, your balance becomes negative.
What happens when your balance is negative
When your Account Balance is negative, we may limit certain actions until funds are available again.
Refunds may be blocked
You cannot process Refunds if you do not have enough settled funds to cover them. You may see a message on your Card Machine stating: "Your balance has reached its negative limit."
Settlements will be delayed
Funds will not be settled to your bank account while your balance is negative. Any new Payments you accept will first go towards clearing the negative amount. Once the balance returns to positive, Settlements will resume as normal.
How to resolve a negative balance
You must add settled funds back into your Account to resolve the issue.
- Accept more Payments: This is the quickest way to resolve a Negative Balance if you are actively trading. Continue using your Card Machine to accept customer Payments. As these new Payments process and settle, they will reduce the negative amount automatically.
- Contact Team Teya: If you are not currently accepting Payments (for example, if you are a seasonal business) but want to clear the balance, contact Team Teya. We will guide you through the available options for your Account.
How to check your balance
You can view your current Account Balance in three places:
Teya App, in the Sales section
Teya Business Portal, in the Sales section
- Your Settlement reports
How to avoid a negative balance
Follow these best practices to reduce the chance of your balance dropping below zero:
- Wait for Settlements: Ensure Payments have settled before you issue large Refunds.
- Monitor your balance: Regularly review your Account Balance in the Teya App or Teya Business Portal.
- Check reports: Review your Settlement reports often to spot deductions or adjustments early.
- Know your timing: Be aware of daily cut-off times and how they affect when funds become available.