A negative balance in your deposit account occurs when the available funds are insufficient to cover a payment or withdrawal that you have authorized a merchant. This can happen if a merchant, who has the authorization to make a transaction on your Account, charges more for their transaction than your available balance in your Account.
If the account balance should become negative due to a payment or withdrawal exceeding the available funds, we have the right to refuse to honor that transaction. This refusal is to protect both you and us from incurring additional fees or charges that may arise from a negative balance situation. However, please keep in mind that some pre-authorized transactions can be processed by the merchant and depending on the charge. An example of this occurring is a hotel or car rental transaction where additional fees or charges were incurred and added to the original pre-authorized amount.
If your account balance becomes negative for any reason, it is your responsibility to correct the situation promptly. You must make a deposit or deposits immediately to cover the negative balance and bring your Account back into a positive status.
In cases where your Account remains in a negative balance state for sixty (60) calendar days, it may be closed. You will remain liable to us for any amounts owed due to negative balances, and we reserve the right to pursue all remedies under law to resolve any negative balance, including setting off the balance with other funds you may hold with the Bank. However, if the charge that resulted in a negative balance was unauthorized and you do not recognize the merchant, please contact our Support Team here.
Tips to Avoid Negative Balances
- Regularly Monitor Your Account: Keep track of your account balance and transactions to ensure you always have enough funds to cover your expenses.
- Be Mindful of Low Balance Alerts to your Mobile Device: At NorthOne, if your balance falls below $50, you will receive a notification that says “Time to Add Money!” This notification is sent out every two weeks, if your balance remains below $50.
- Consider setting up Auto Top-Ups on your Account.
Question: Why am I being alerted as a customer that my balance is low?
Answer: As a business owner, you spend your day-to-day focused on running your business. You shouldn't have to worry about missing payments for a low balance or because you didn't log in at the right time. No action is required by you, but if you do have any upcoming payments or purchases to make, we'd recommend adding funds to your NorthOne Business Account to make sure those go through smoothly.
By monitoring your Account regularly, being cautious with transactions, and promptly addressing any negative balances, you can maintain a healthy banking relationship and avoid potential Account closures or additional liabilities. If you have any questions or concerns about negative balances or your Account, don't hesitate to contact our customer support team for assistance.
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NorthOne is a financial technology company, and not a bank. Banking services are provided by The Bancorp Bank, N.A., Member FDIC.