Most of the time, your transactions go through without a hitch — quick, easy, and stress-free. But every now and then, a few bumps can appear along the way. Spotting a negative balance can feel like a buzzkill.
But, hey! Let's break down why this might happen and how you can fix it. 😎
Reasons Why Your Account Balance Can Turn Negative:
Currency Conversion Difference 💱
Currency Conversion Difference 💱
When you make an international transaction, we deduct the amount based on the exchange rate at that time. However, the merchant can settle (claim) the funds anytime over the next 90 days. If the exchange rate increases during this period, your account balance might turn negative due to the difference.
To help you understand this better, please refer to this article👇
Here’s a simple example for more clarity:
Imagine you buy an item from Aliexpress for 10 USD, and the conversion rate on that day is 1 USD = 280 PKR, so let’s say we deduct Rs. 3,161 from your SadaPay account (tax + fee inclusive). We hold this amount and wait for Aliexpress to claim it.
Now, let’s say Aliexpress claims the transaction 4 days later, and the conversion rate has increased to 1 USD = 285 PKR. The total amount now will be Rs. 3,216 (tax +fee inclusive). If your account balance was less than Rs. 3,216, this Rs. 55 difference will be deducted from your account, possibly leading to a negative balance.
On the other hand, if the conversion rate drops to 1 USD = 275 PKR on the day of settlement, the total amount would be Rs. 3,106. In this case, the extra Rs. 55 that were initially deducted will be credited back to your account.
Duplicate Transaction 🔄
Duplicate Transaction 🔄
Sometimes, due to a technical glitch, you might be charged twice for the same transaction. This can lead to a negative balance if your account doesn’t have enough funds. Don’t worry! Reach out to our in-app chat support team, and we’ll file a dispute to sort this out for you.
Here’s a simple example for more clarity:
Imagine you have Rs. 1000 in your SadaPay account and you buy an item from Foodpanda for Rs. 1000. Due to a technical error, the amount gets deducted twice, turning your account balance negative (-1000).
But don’t worry, our team will file a dispute for your transaction and sort it out for you.
Late Presentment ⏳
Late Presentment ⏳
When you make a transaction, the merchant has 90 days to settle (claim) the funds. As per standard banking practice, we hold the amount for 30 days. If the merchant does not claim it within 30 days, we reverse the amount back into your account. However, the merchant can still claim the transaction after 30 days, if you received the goods/services. This can lead to a negative balance.
Insufficient balance at the time of settlement.
An increase in the exchange rate between the transaction and settlement times (for international transactions only).
Here’s a simple example for more clarity:
Imagine you have Rs. 1000 in your SadaPay account and you buy an item from Foodpanda for Rs. 1000. This amount is instantly deducted, making your account balance Rs. 0. We hold the payment for 30 days for Foodpanda to claim it.
If Foodpanda doesn’t claim the transaction within 30 days, we reverse the amount back into your account, making your balance Rs. 1000 again.
Now, suppose you spend this Rs. 1000, so your balance is Rs. 0 again. If Foodpanda claims the transaction on the 40th day (10 days after the amount is reversed), your account balance will turn negative to Rs. -1000.
Note: If you need details about these transactions or feel the reversal didn’t reflect in your account, please reach out to us via in-app chat.
Mismatch/Unmatched Presentment 🔁
Mismatch/Unmatched Presentment 🔁
When you make a card transaction, we instantly deduct funds from your account. The merchant can claim these funds, or sometimes, they might not. If the merchant claims the same amount as a different transaction instead of the original one, it can result in a second deduction and lead to a negative balance.
But don’t worry! Contact our in-app chat support team, and we’ll file a complaint to get this sorted.
Here’s a simple example for more clarity:
Imagine you have Rs. 1000 in your SadaPay account and you buy an item from Foodpanda for Rs. 1000. This amount is instantly deducted, making your account balance Rs. 0. We hold the payment for 30 days for Foodpanda to claim it.
If Foodpanda claims a different transaction instead of the original one, it leads to a second deduction, turning your account balance negative.
But don’t worry, our team will file a dispute for your original transaction and sort it out for you.
FAQs❓
FAQs❓
Q: Till when can a merchant claim/settle the transaction?
A. The merchant can claim/settle the funds for a transaction anytime within 90 days from the transaction date.
Q: Till when can SadaPay hold a particular transaction if the merchant has not claimed the transaction?
A. As per standard banking practice, we hold the amount for 30 days. If the merchant does not claim it within 30 days, we reverse the amount back into your account
Q: What happens when a merchant does not claim/settle the transaction within 30 days?
A: When a transaction isn't claimed by the merchant within 30 days, we automatically reverse the amount to your SadaPay account, and your balance is updated to reflect this. Please note that this does not mean the merchant cannot claim the transaction later. If the merchant claims a valid transaction after 30 days, it will be honored, and the funds will be deducted again from your account.
Q: Can a merchant claim/settle the transaction after it has been reversed i.e post 30 days?
A: Yes, the merchant can claim the transaction after it has been reversed, even after 30 days. The claiming process is controlled by the merchant, not SadaPay. While we fulfill our role in the payment process, some steps are beyond our control.
Q: Why can't I see the transaction reversal after 30 days in my transaction history?
A: Currently, we don't show these reversals in our transaction history, which can sometimes be confusing. However, if you feel that this reversal didn't reflect in your account, here are two things you can do for further clarification:
Contact the merchant, share the transaction details with them, and confirm with them.
Check the transactions you made after the date of reversal. If needed, you can ask us for an account statement to see all transactions made within a certain date range. Transactions during this period will indicate that you had sufficient balance due to the reversal.
Q: Why did my balance go negative after the merchant claimed the transaction?
A: Your balance went negative because the merchant claimed the transaction after we reversed the amount in your account (after 30 days). Even though the amount was reversed and your balance was updated, the payment still went through, causing your balance to go negative.
Key Terms to consider in Payment Processing 🔤
Key Terms to consider in Payment Processing 🔤
1. Transaction Initiation: The act of starting a purchase or payment using your SP account.
2. Immediate Deduction: The initial deduction of the transaction amount from your account balance.
3. Authorization: The process of verifying and approving the transaction amount to be held from your account.
4. Presentment: The step where the merchant finalizes the payment by claiming the funds from your account. This can occur anytime within 90 days of the transaction.
5. Settlement: The process of transferring funds from your account to the merchant's account, completing the transaction.
6. Reversal: The process of returning the held amount to your account if the merchant does not claim the funds within 30 days.
7. Currency Conversion: The conversion of the transaction amount from one currency to another, applicable in international transactions.
8. Duplicate Transaction: An error where the transaction amount is deducted twice due to a technical glitch.
9. Late Presentment: When the merchant claims the transaction funds after the 30-day hold period, potentially leading to a negative balance if there are insufficient funds in the account.
10. Mismatch/Unmatched Presentment: When the merchant claims a different transaction amount than the original one, leading to a second deduction.
11. Dispute: The process initiated to resolve any errors or discrepancies in the transaction, such as duplicate transactions or unmatched presentments.
12. Chargeback: A reversal of funds initiated by SP on behalf of the user due to a disputed transaction.
13. Merchant: The entity (website or physical store) where the purchase or payment is made.
14. Claim/Settle: The action of the merchant receiving the payment made by the user for goods or services.
15. Account Balance: The current amount of money available in your SP account.
16. Negative Balance: When the account balance falls below zero, often due to late presentments or exchange rate fluctuations in international transactions.