Resolve Negative Balances in Squarespace Payments
TL;DR:
- Negative balances happen when refunds and chargebacks drop your account below zero
- Auto-debits pull funds from your linked bank account to cover the deficit
- Failed auto-debits stop refunds and payouts until resolved
- Multiple auto-debit failures over 20 business days can suspend your account
- Keep sufficient funds in your linked bank account to avoid problems
Understanding your Squarespace Payments balance helps you avoid disruptions to your payment processing. Here's what you need to know about negative balances and how to fix them.
How Squarespace Payments Works
Your Squarespace Payments dashboard shows three key figures:
Total Payments Volume: All sales from the last 30 days, minus refunds and fees.
Currently Processing: Funds from completed sales that are still being processed (usually 1-2 days).
Upcoming Payout: Processed funds ready to transfer to your bank account.
What Causes Negative Balances
Your account goes negative when refunds or chargebacks push your balance below zero. This commonly happens when:
- You issue a refund larger than your current balance
- You receive a chargeback that exceeds available funds
- Multiple refunds are processed in quick succession
How Auto-Debits Work
When your account ends the day with a negative balance, Squarespace automatically pulls the deficit from your linked bank account through an auto-debit.
This usually happens overnight and clears the negative balance without any action from you.
When Auto-Debits Fail
If the auto-debit fails, your account functionality becomes restricted:
- You cannot issue refunds
- Payouts to your bank account stop
- New payment processing continues normally
Common reasons for failure:
- Insufficient funds in your bank account
- Outdated bank account details
- Bank blocking the transaction
Fixing Failed Auto-Debits
To resolve a failed auto-debit:
- Check your bank account has sufficient funds
- Update your bank details in Squarespace if they've changed
- Wait for the next auto-debit attempt
- Contact your bank if they're blocking the transaction
The system will retry the auto-debit, but if it fails repeatedly for 20 business days, your account gets suspended.
Account Suspension
During suspension:
- You cannot accept new payments
- Dashboard functionality is severely limited
- Existing customers cannot complete purchases
To lift a suspension, resolve the negative balance through a successful auto-debit or by receiving enough new payments to cover the deficit.
Prevention tip: Keep a buffer of funds in your linked bank account to cover potential refunds and chargebacks.
FAQs
How can I prevent negative balances?
Maintain extra funds in your linked bank account to cover refunds and chargebacks. Monitor your payments dashboard regularly to spot potential issues early.
Can I still accept payments with a negative balance?
Yes, you can still accept new payments. However, you cannot issue refunds or receive payouts until the negative balance is resolved.
What if my bank keeps blocking the auto-debit?
Contact your bank to authorise transactions from Squarespace. You may need to add Squarespace as a trusted merchant or increase your account's transaction limits.
Jargon Buster
Auto-debit: Automatic withdrawal from your linked bank account to cover negative balances in your Squarespace Payments account.
Chargeback: When a customer disputes a payment through their bank, forcing you to return the money plus additional fees.
Negative balance: When your account balance drops below zero, typically due to refunds or chargebacks exceeding available funds.
Wrap-up
Negative balances are manageable if you understand how they work and stay prepared. Keep sufficient funds in your linked bank account, monitor your payments dashboard regularly, and update your banking details promptly when needed. This prevents most payment disruptions and keeps your business running smoothly.
Ready to master your Squarespace site's payment systems? Join Pixelhaze Academy for expert guidance and troubleshooting support.