Understanding Your Wallet Balances

Your balances are a crucial figure that reflects the total amount of funds in your account, considering all transactions. It's important to understand how these balances are calculated and what factors can affect them. Let's break it down with a simple formula and some examples.

Formula:

Available Balance = (Ledger Balance + Limit Amount) − (Lien Amount + Wallet Minimum Balance + Wallet Uncleared Balance)

Key Terms:

1. Ledger Balance: This is the total balance in the wallet, including all funds regardless of whether they are accessible or pending. It reflects the wallet's standing, including transactions that haven't yet cleared.
   Example:
   If you have deposited money into your wallet and initiated some payments that haven't been processed yet, the ledger balance includes these pending transactions.
   
   
2. Total Limit: Any overdraft or credit limit associated with your account.
   Impact:
   A higher total limit increases the Available Balance by providing additional funds that can be used beyond the wallet’s current cash balance.
   
   
3. Lien Amount: Funds that are on hold and not available for use. This could be as a result of card funding, card creation, payout etc.
   Impact:
   Total Lien decreases the Available Balance since these funds are reserved and cannot be used for transactions.
   
   
4. Wallet Minimum Balance: The minimum balance required to keep your account active.
   Impact:
   The Wallet Minimum Balance directly adds to the Available Balance, ensuring that a basic fund level is always maintained.
   
   
5. Wallet Reserved Balance: Funds that are pending clearance and not yet available for use. This could include cards in negative balances, funds undergoing review etc.
   Impact:

A higher Wallet Reserved Balance reduces the Available Balance, as it accounts for funds that are set aside to handle potential charges or negative transactions.



6. Wallet Available Balance: is a derived balance that shows the amount available for transaction at any point in time.
   

   Components:
   Available Balance is determined by this formula:
   Available Balance = Ledger Balance + Total Limit - Total Lien + Wallet Minimum Balance + Wallet Reserved Balance

Example Scenarios:

• Ledger Balance: $1,000

• Limit Amount: $200

• Lien Amount: $50

• Wallet Minimum Balance: $100

• Wallet Uncleared Balance: $150

Calculation:Available Balance = (1000 + 200) - (50 + 100 + 150) = 1300 - 300 = $1,000 Your ledger balance is $1,000, meaning you have $1,000 available after considering all limits and holds.

Balances Disparities:
Ledger Balance and Available balance may not always be the same, and could sometimes have discrepancies due to other balances mentioned above. 

To see cards with negative balances, you can use the filter option in the "All Cards" module. This feature helps you quickly identify which cards are impacting your balance.

• Ledger Balance acts as the foundation of the Available Balance, representing the total funds in the wallet.

• Total Limit increases the Available Balance by adding the overdraft capability, effectively extending spending power.

• Total Lien reduces the Available Balance by holding back funds that are temporarily inaccessible.

• Wallet Minimum Balance ensures that a minimum amount is always accessible, positively impacting the Available Balance.

• Wallet Reserved Balance reduces the Available Balance as it accounts for obligations or liabilities that need to be covered.

Additionally, you can view a detailed breakdown of your wallet balance by clicking the info icon beside the Ledger Balance amount. This will show you how each component of the formula affects your overall balance.

Understanding these elements helps you manage your finances more effectively and ensures you have a clear view of your available funds.