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Negative balance accounts

Allow customers the flexibility of going into a negative balance, either unintentionally or by design.

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Power overdrafts for personal accounts and working capital accounts for corporates

Negative balance accounts make credit more flexible and easier to manage, and Episode Six's platform allows negative balance accounts to be offered to consumers, businesses and corporates.

Negative balance accounts provide financial institutions with an off-the-shelf credit-flexible platform with cards as an added feature.

Grant your customers added flexibility at the point of transaction.

No decline at the time of transaction means that accounts can go into negative balance, to be covered later or by reserve accounts.

You don't have to choose between deposit accounts and credit accounts: a negative balance account employs the best of both, allowing the customer to operate a positive balance or a negative balance. You can attach overdraft fees to be applied when an account enters a negative balance to monetize the feature.

Negative balance configuration made easy

Our client dashboard UI allows program managers to rapidly innovate and make pricing and rule changes to their negative balance products, responding to market changes and customer demand. You'll have a greater array of instantly deployable options, including flexible term configurations, and the ability to convert transactions into fixed loans as needed.

We can structure complex hierarchies, making negative balance accounts ideal for clients that operate commercial portfolios, travel and expense products and regular lending.

FAQs

How are negative balance accounts different from traditional overdrafts?

Negative balance accounts combine the functionality of deposit and credit accounts in a single product. Unlike traditional overdrafts, they can be configured with more flexible rules, automated loan creation, linked reserve funding, and real-time controls—all managed through a single, modern platform.

How do negative balance accounts support working capital for businesses?

For businesses and corporates, negative balance accounts function as short-term working capital facilities. Transactions are approved in real time, even when funds are insufficient, allowing operations to continue uninterrupted. The negative balance can then be settled later, converted into a loan, or covered by reserve accounts—helping businesses manage cash flow more effectively.

Can I apply fees to negative balances?

Yes. Episode Six allows financial institutions to attach overdraft fees when an account enters a negative balance. These fees can be configured based on duration, amount, or customer segment, enabling monetization alongside transparency and control.

How does Episode Six make managing negative balance products easier?

Episode Six provides a cloud-native, real-time platform with dashboards and APIs that let teams quickly launch, adjust, and scale negative balance products. This enables rapid innovation, faster response to market demand, and simpler management of even the most complex account hierarchies.

Ready to give your customers more financial flexibility?

Contact us today