Understand Negative Balance Transfers (Top-Ups)

Maxio Payments automatically debits your connected bank account, known as a top-up, to keep your merchant balance from staying negative, so you don't have to take any action to keep your account in good standing. Top-ups show up in your deposit reports, and in your general ledger if you sync one.

What is a negative balance transfer?

A negative balance transfer occurs when your account enters a negative balance and remains there for a short period of inactivity. To correct this, Maxio automatically debits your connected bank account and transfers the necessary funds to your merchant balance.

This activity appears in your deposit reports as a transaction type labeled Transfer.

Why does this happen?

Your balance may become negative if your recent sales don't cover deductions such as:

• Large refunds
• Chargebacks
• Returned ACH payments (ACH rejects)

If you need help identifying the source of a specific ACH reject, see Understand ACH Payments and Rejects.

After a continued negative balance is detected, the system initiates a transfer debit, also known as a top-up.

How the process works

A top-up follows this general sequence:

1. Your merchant balance drops below $0.00.
2. The system monitors the account and sees no incoming funds for a brief duration.
3. Maxio automatically debits your linked bank account.
4. The transfer appears in your records as a Transfer transaction for the amount debited, plus a separate Transfer fee entry.
5. Once your balance is at or above $0.00, normal payout activity resumes.

Where to see it in your records

When reviewing your deposit reports, a Transfer entry indicates that a top-up has occurred to resolve a negative balance. This may appear alongside new sales or other transactions, depending on your activity level.

If no new sales occur during the top-up period, the transfer may not appear until your next deposit includes sales activity.

Timing of fees

Fees for refunds, chargebacks, and ACH rejects are applied at the time of deposit, not when the original event occurs. If your deposit record still shows a small negative balance after a top-up, this is likely due to those event-related fees.

Example scenario:

1. Your balance becomes -$20,465.91.

2. Maxio debits $20,417.98 from your bank account as a top-up, leaving a residual balance of -$47.93.

3. On the same day, you process two new sales totaling $1,372.52, and a $15.00 reject fee is deducted.

4. Your adjusted balance becomes $1,309.59, and normal payouts resume:

   -$47.93 + $1,372.52 = $1,324.59 $1,324.59 - $15.00 = $1,309.59 ✅

GL mapping and transaction description

If you sync deposits from Maxio Payments to QuickBooks or NetSuite, a top-up's deposit line is sent to your Unassociated Payments Account setting. You must configure this account before deposit sync can run; it has no default value.

In your general ledger, look for the following transaction description:

"Negative balance deposit line"

Related information

To view and export your deposit reports, including transfer entries, see View and Export Deposits.

If a top-up's deposit line isn't syncing to your general ledger as expected, see Troubleshoot Deposit Sync Issues with Your General Ledger.

Get help

If you have questions about negative balance transfers or need help reviewing your deposit records, contact our support team at support@maxio.com.