# JPMC-PDP Documentation from https://developer.payments.jpmorgan.com

# Manage negative balance

Platforms may experience scenarios that cause accounts to go into a negative balance (such as chargebacks, refunds or returns). 

## Account setup

- Funding account: Set up by J.P. Morgan implementation team. Pre-funded by the platform to offset negative balances within the platform’s program.

- Offset accounts (Processing offset / Client offset): Set up by J.P. Morgan implementation team. Aligned to platform’s processing account and all user LIMITED_DDA accounts to offset any negative balances within the platform’s account structure.

## Notifications

- ACCOUNT_OVERDRAWN: Notification sent when an account exceeds its negative balance limit.

- THRESHOLD_LIMIT: Notification sent when program-level or account-level thresholds are approached or breached.

To learn more, see [Notifications](/docs/embedded-finance-solutions/embedded-payments/capabilities/notification-subscriptions/index). 

## Limits

- Program-level limits: Define the maximum cumulative negative balance for the program across all platform processing and client accounts.
  - Platforms receive an initial webhook alert when approaching the maximum limit.
  - A secondary notification is sent when the maximum limit is breached.
  - Notifications are also sent when negative balances are restored to pre-determined levels.

- Account-level limits: Define the maximum negative balance each individual processing or client account can reach before transactions are rejected.
  - Immediate response is provided when a debit transaction surpasses account-level limits.
  - Platforms are expected to remediate negative balances before further processing direct debits.

- Ongoing operations: Automatic money movements occur at the end of each day, depending on daily changes in aggregate negative balances.
  - Platforms are notified of these movements via API integration.
  - On request, platforms can receive an outstanding balance report listing accounts in negative balance and duration, providing treasury teams with visibility.

## Automated fund movements

At the end of New York branch close (5:00 p.m. ET), the aggregate negative balances in across LIMITED_DDA accounts and processing accounts are automatically managed by pulling funds from the pre-funded funding account into the offset accounts to cover any shortfalls.

Money movement scenarios:

- Funding account to offset account: At branch close, funds move from the funding account to the offset account to cover any negative balances.

- Offset account to funding account: If you top up your processing or LIMITED_DDA accounts to resolve negative balances and no other changes occur before branch close, the system automatically moves funds from the offset account back into the funding account.

## Search fund movements by ID

You can review these transactions by searching for the transaction ID by calling `GET /transactions`. Below are examples of movements between the funding and offset accounts.

Funding to offset movement:

```json
{
  "id": "V2V_PROC_OFFSET_001",
  "transactionReferenceId": "v2v_proc_offset_ref001",
  "type": "TRANSFER",
  "status": "COMPLETED",
  "requestedExecutionDate": "2026-05-21",
  "valueDate": "2026-05-21",
  "amount": "1000.00",
  "currency": "USD",
  "debtor": {
    "clientId": "0001007621",
    "partyDetails": {
      "name": "EP Processing Account"
    },
    "account": {
      "type": "REGISTERED_ACCOUNT",
      "registeredAccount": {
        "id": "a1b2c3d4e5f6a1b2c3d4e5f6a1b2c3d4",
        "number": "...7001",
        "ledgerBalance": "49000.00",
        "postingVersion": 16
      }
    }
  },
  "creditor": {
    "clientId": "0001007621",
    "partyDetails": {
      "name": "EP Client Offset Account"
    },
    "account": {
      "type": "REGISTERED_ACCOUNT",
      "registeredAccount": {
        "id": "b2c3d4e5f6a1b2c3d4e5f6a1b2c3d4e5",
        "number": "...7002",
        "ledgerBalance": "1000.00",
        "postingVersion": 3
      }
    }
  }
}
```

Offset to funding movement:

```json
{
  "id": "V2V_OFFSET_PROC_001",
  "transactionReferenceId": "v2v_offset_proc_ref001",
  "type": "TRANSFER",
  "status": "COMPLETED",
  "requestedExecutionDate": "2026-05-21",
  "valueDate": "2026-05-21",
  "amount": "1000.00",
  "currency": "USD",
  "debtor": {
    "clientId": "0001007621",
    "partyDetails": {
      "name": "EP Client Offset Account"
    },
    "account": {
      "type": "REGISTERED_ACCOUNT",
      "registeredAccount": {
        "id": "b2c3d4e5f6a1b2c3d4e5f6a1b2c3d4e5",
        "number": "...7002",
        "ledgerBalance": "0.00",
        "postingVersion": 4
      }
    }
  },
  "creditor": {
    "clientId": "0001007621",
    "partyDetails": {
      "name": "EP Processing Account"
    },
    "account": {
      "type": "REGISTERED_ACCOUNT",
      "registeredAccount": {
        "id": "a1b2c3d4e5f6a1b2c3d4e5f6a1b2c3d4",
        "number": "...7001",
        "ledgerBalance": "50000.00",
        "postingVersion": 17
      }
    }
  }
}
```