# Balances

Each of your entity sub-accounts has the following types of balance:

- _Available_ balance
- _Collateral_ balance
- _Operational_ balance
- _Payable_ balance
- _Pending_ balance

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## How it works

After a payment is processed, the uncleared funds enter your _Pending_ balance.
When they are ready for [settlement](https://www.checkout.com/docs/funds-management/receive-settlements.md), they move into _Available_, and are then paid out to your bank account.

If any funds from _Available_ need to be reserved, they move into _Payable_ and are deducted from there when they clear.

Refunds and chargebacks are debited immediately from your _Available_ balance.

![Flowchart representing the structure of Checkout Business Account with sub-accounts](https://www.checkout.com/docs/Checkout Business Account/Balances.png)

> **Information**
>
> To view and manage your balances, see [Manage balances](https://www.checkout.com/docs/funds-management/manage-funds/balances/manage-balances.md).

---

## Available balance

The _Available_ balance contains funds that are ready for settlement or available to use.
For example, for [Bank and Card Payouts](https://www.checkout.com/docs/payments/request-payouts.md), [sub-account transfers](https://www.checkout.com/docs/funds-management/move-funds/transfer-funds.md), and [Issuing](https://www.checkout.com/docs/card-issuing.md) payments.

This balance changes regularly as funds that are ready for settlement enter from the _Pending_ balance, and as refunds and chargebacks are debited.

> **Information**
>
> If your _Available_ balance has insufficient funds to cover refunds, card payouts, and issuing payments, you can overdraw _Available_ up to the amount you have in _Pending_.

### Consolidated Available balance

If you have more than one sub-account in more than one currency, we also provide your _Consolidated Available_ balance.
This is the total of the _Available_ balances for all of an entity's sub-accounts in your account's [default currency](https://www.checkout.com/docs/funds-management/manage-funds/balances/manage-balances.md#Manage_your_default_currency).

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## Collateral balance

The _Collateral_ balance holds funds that Checkout.com reserves to cover potential liabilities and unplanned risk events associated with your payment processing.
For example, fraud, chargebacks, refunds, or business closure.

This balance is made up of two components:

- Fixed reserve – A fixed amount held independently of your payment volume.
- Rolling reserve – A percentage of captured funds held for a rolling period.

For more information, see [Fixed and rolling reserves](https://www.checkout.com/docs/funds-management/manage-funds/balances/fixed-and-rolling-reserves.md).

---

## Operational balance

The _Operational_ balance holds funds as a backup to cover Refunds, Bank and Card Payouts and Issuing payments when your _Available_ balance is insufficient.

Holding an _Operational_ balance ensures outbound payments are not declined and enables you to continue processing, up to the amount held in this balance.

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## Payable balance

The _Payable_ balance contains funds reserved from the _Available_ balance for outgoing payments.
For example, settlements, Bank and Card Payouts, and Issuing payments that are in transit and yet to clear.

When these payments clear, they are deducted from the _Payable_ balance.

---

## Pending balance

The _Pending_ balance contains incoming funds for payments that are yet to clear, minus any fees. Refunds and chargebacks are debited from your _Available_ balance instead.

Once cleared, Checkout.com assigns funds an availability date based on your sub-account's [settlement speed](https://www.checkout.com/docs/funds-management/receive-settlements.md#Settlement_speed). On the availability date, the funds are ready for settlement and move to your _Available_ balance.

> **Information**
>
> If your _Available_ balance has insufficient funds to cover refunds, card payouts, and issuing payments, you can overdraw _Available_ up to the amount you have in _Pending_.

### Consolidated Pending balance

If you have more than one sub-account in more than one currency, we also provide your _Consolidated Pending_ balance.
This is the total of the _Pending_ balances for all of an entity's sub-accounts in your account's default currency.

---

## Related topics

- [Manage balances](https://www.checkout.com/docs/funds-management/manage-funds/balances/manage-balances.md): Learn how to view and manage the balances you hold with Checkout.com, and configure balance notifications.
- [Fixed and rolling reserves](https://www.checkout.com/docs/funds-management/manage-funds/balances/fixed-and-rolling-reserves.md): Learn more about fixed and rolling reserves held by Checkout.com.