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

# Manage negative balances

Platforms may experience scenarios that cause accounts to go into a negative balance (such as chargebacks, refunds, or returns). For these scenarios, you need at minimum the following details:

## Account setup

- Funding Account: Set up by JPM 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 JPM 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.

Learn more about [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": "OsULatnXqfjdoISq",
  "transactionReferenceId": "BREj9u9HC7BlfwI",
  "originatingId": null,
  "status": "COMPLETED",
  "type": "TRANSFER",
  "originatingTransactionType": null,
  "ledgerBalance": -1375.71,
  "debtorClientId": null,
  "debtorAccountId": "4cd6a1f480704b93af3bed5d2fcdc0f87",
  "debtorAccountNumber": null,
  "debtorName": "J.P. Morgan Chase Bank",
  "creditorClientId": "S007299123",
  "creditorAccountId": "d41f8ec079444a13abca00f52c5809ac",
  "creditorAccountNumber": "...5090",
  "creditorName": "Test EP - VUTUOQ",
  "recipientId": null,
  "amount": 216,
  "targetCurrency": null,
  "currency": "USD",
  "targetCurrencyUnit": null,
  "memo": null,
  "paymentDate": "2025-11-07",
  "acknowledgedAt": "2025-11-07T08:20:25.123Z",
  "postingVersion": 1,
  "effectiveDate": "2025-11-07",
  "localInstrumentCode": "",
  "fxInformation": null
}
```

Offset to Funding Movement:

```json
{
  "id": "14FkblzK1lEri3Lc4",
  "transactionReferenceId": "WERf4sOCweB3c2f",
  "originatingId": null,
  "status": "COMPLETED",
  "type": "TRANSFER",
  "originatingTransactionType": null,
  "ledgerBalance": 0,
  "debtorClientId": null,
  "debtorAccountId": "c41f8ec079444a13abca00f52c5809ac",
  "debtorAccountNumber": "...5090",
  "debtorName": "Test EP - VUTUOQ",
  "creditorClientId": "S007299123",
  "creditorAccountId": "4cd6a1f480704b93af3bed5d2fcdc0f87",
  "creditorAccountNumber": null,
  "creditorName": "J.P. Morgan Chase Bank",
  "recipientId": null,
  "amount": 216,
  "targetAmount": null,
  "currency": "USD",
  "targetCurrency": null,
  "memo": null,
  "paymentDate": "2025-11-07",
  "createdAt": "2025-11-07T08:02:25.123Z",
  "postingVersion": 1,
  "effectiveDate": "2025-11-07",
  "localInstrumentCode": "",
  "fxInformation": null
}
```