Balances
Each of your sub-accounts has the following types of balances:
- Available
- Collateral
- Operational
- Payable
- Pending
After a payment is processed, the uncleared funds enter your Pending balance. When they clear, they move into Available, and are then paid out to your bank account as a settlement.
If any funds from Available need to be reserved, they move into Payable and are deducted from there when they clear.
The Available balance contains funds that you can use for outgoing payments. For example, for settlements, Bank and Card Payouts, sub-account transfers, and Issuing payments.
This balance changes regularly as funds clear from the Pending balance.
The Consolidated Available balance is the total of the Available balances for all of your entity's sub-accounts.
The Collateral balance holds funds that Checkout.com reserves to cover potential liabilities and unplanned risk events associated with your payment processing. For example, fraud, chargebacks, refunds, or business closure.
These funds are reserved on a fixed and/or rolling basis, depending on your account configuration.
The Operational balance holds funds as a backup to cover Bank and Card Payouts and Issuing payments when your Available balance is insufficient.
Holding an Operational balance ensures outbound payments are not declined and enables you to continue to process them, up to the amount held in this balance.
The Payable balance contains funds reserved from the Available balance for outgoing payments. For example, settlements, Bank and Card Payouts, and Issuing payments that are in transit and yet to clear.
When these payments clear, they are deducted from the Payable balance.
The Pending balance contains incoming funds for payments that are yet to clear, minus any refunds, chargebacks, and fees. Once cleared, these funds move to your Available balance after a fixed delay per sub-account.
Your delay is expressed as T+X, where:
- T is the transaction date.
- X is the number of business days after the transaction date that the delay lapses.
When the delay lapses, all payments processed that business day are batched and move to your Available balance shortly after midnight. Payments processed on non-business days are included in the batch on the next business day.