How a Virtual Card's Available Balance is Calculated
A card’s available balance is re-calculated in each of the following scenarios:
When the card is authorized:
| Event | Event Amount | Available Balance |
|---|---|---|
| Card Issued | $1,000.00 | $1,000.00 |
| Authorization 23456 successful | $200.00 | $800.00 |
When the authorization clears for the authorized amount, the available balance does not change:
| Event | Event Amount | Available Balance |
|---|---|---|
| Card Issued | $1,000.00 | $1,000.00 |
| Authorization 23456 successful | $200.00 | $800.00 |
| Authorization 23456 cleared | $200.00 | $800.00 |
When the authorization settles for less than the authorized amount, the available balance is adjusted based on the settled amount:
| Event | Event Amount | Available Balance |
|---|---|---|
| Card Issued | $1,000.00 | $1,000.00 |
| Authorization 23457 successful | $200.00 | $800.00 |
| Authorization 23457 cleared | $150.00 | $850.00 |
If an authorization settles for more than the authorized amount, the available balance is adjusted based on the settled amount:
| Event | Event Amount | Available Balance |
|---|---|---|
| Card Issued | $1,000.00 | $1,000.00 |
| Authorization 23458 successful | $1,000.00 | $0 |
| Authorization 23458 cleared | $1,002.00 | $(2.00) |
When an authorization has multiple settlements, each settlement impacts the available balance:
| Event | Event Amount | Available Balance |
|---|---|---|
| Card Issued | $1,000.00 | $1,000.00 |
| Authorization 23459 successful | $200.00 | $800.00 |
| Authorization 23459 cleared | $150.00 | $850.00 |
| Authorization 23459 cleared | $50.00 | $800.00 |
When an authorization is voided, the available balance is immediately updated by the voided amount:
| Event | Event Amount | Available Balance |
|---|---|---|
| Card Issued | $1,000.00 | $1,000.00 |
| Authorization 23460 successful | $200.00 | $800.00 |
| Authorization 23460 voided | $200.00 | $1,000.00 |
When there is a refund to the card, the refunded amount is not added back to the available balance until the refund clears (settles):
| Event | Event Amount | Available Balance |
|---|---|---|
| Card Issued | $500.00 | $500.00 |
| Authorization 23461 successful | $200.00 | $300.00 |
| Authorization 23461 cleared | $200.00 | $300.00 |
| Refund Authorized | $200.00 | $300.00 |
| Refund cleared | $200.00 | $500.00 |
How Limit Windows Impact Available Balances
Lodged cards can have DAILY, WEEKLY, MONTHLY or LIFETIME limit windows. A card’s available balance is reset at the beginning of each limit window
For cards with a daily limit, a daily job runs each day at 12:00 am UTC and refreshes the available balance. For example, If a card is issued for $5,000 on 9/1 with a daily limit window and $3,000 is authorized on 9/1, then the available balance on 9/1 is $2,000. Then on 9/2, the available balance resets to $5,000.
A weekly job runs each Monday at 12:00 AM UTC and refreshes the available balance for all lodged cards that have a weekly limit window.
A monthly job runs on the first day of each month at 12:00 AM UTC and refreshes the available balance for all lodged cards that have a monthly limit window.
For each limit window, if you change the spend limit on the card at any point, that new spend limit will be what the card is set to at the beginning of each limit window (DAY, WEEK, MONTH).
If you lower the spend limit below the amount already spent, causing a negative available balance, we display the negative balance so that you know the card cannot be spent until either the limit window refreshes, or you create a higher spend limit on the card.
A little more detail on how Voids and Returns are handled:
If a supplier voids a sale before it settles (clears), the card's available balance is increased immediately. If the supplier returns a sale, we don't apply the return amount back to the card's available balance until the refund settles.
For example, if you issue a $100 Lodged Card and authorize $25, the available balance will be immediately updated to $75. If that sale is voided before it settles, the available balance goes back to $100 immediately upon the void event. If that sale is returned after the sale settles, the available balance will not go back to $100 until the refund settles.
Refunds to lodged cards are not added back to the available balance if the limit window is set to anything other than “Lifetime”. For Daily, Weekly and Monthly limit window cards, refund totals are not added back to the available balance.
Virtual Card Chargebacks are not added back to the available balance on a card.
How Amount Limit Modifications Impact Available Balances:
If you modify the amount limit on a lodged card, the available balance on the card will be re-calculated based on the new amount limit:
| Event | Event Amount | Available Balance |
|---|---|---|
| Card Issued | $500.00 | $500.00 |
| Authorization 23461 successful | $200.00 | $300.00 |
| Authorization 23461 cleared | $200.00 | $300.00 |
| Amount Limit Changed to $800.00 | $800.00 | $600.00 |
| Authorization 23462 successful | $300.00 | $300.00 |
| Authorization 23462 cleared | $300.00 | $300.00 |
| Amount Limit Changed to $1,000.00 | $1,000.00 | $500.00 |
A Note About Refunds
When a virtual card is refunded, the refunded amount will be included in your daily total activity calculation (funds are "returned" to you as part of the Daily Accounting process). The refund amount is also added back to the card's available balance (for lodged cards with a lifetime limit window and all one time/limited use cards). For one time or limited use cards, best practice is to terminate all cards once they have been used to minimize any risk of future use of the card.
Updated 2 months ago