Your WooCommerce Payments balance can become negative in a few ways. The most common by far is the following scenario:
- You charge a customer for their order on your WooCommerce site.
- Those funds get added to your WooCommerce Payments balance.
- The money is deposited, reducing your account balance to zero.
- You refund an order, or a dispute is filed. Now your balance is negative.
For merchants with a high volume of orders, this will be less common, since new incoming orders may provide your WooCommerce Payments account balance with enough of a “buffer” to accommodate any refunds or disputes. For low volume merchants, negative balances may happen more often, since there are fewer sales to help offset incoming refunds or disputes.
If you use a bank account to receive deposits from your WooCommerce Payments accounts, your bank account may be debited to cover the negative balance.
If you use a debit card to receive deposits, your card will not be debited. Instead, the money from future sales on your site will pay down the negative balance. Once your balance becomes positive again, deposits to your card will resume as normal.
One other thing to note: if you are using a debit card for deposits and your balance becomes negative, it will not be possible to issue refunds to customers until you’ve made enough sales to bring your balance back up to more than the refund amount. This is one reason we suggest adding a bank account instead of a debit card, if possible.