What is a Lien Balance?
A lien balance represents an amount you owe to Chipper that will be automatically collected when funds are added to your wallet. This balance is created when certain fees (e.g., maintenance fees) cannot be successfully collected due to insufficient funds in your wallet.
Products and Their Maintenance Fees
Product | Amount | Frequency |
UGX Virtual Card Maintenance Fee | UGX 8000 | Monthly Basis |
USD Virtual Account Maintenance Fee | $1.50 | Monthly Basis |
Stock Maintenance Fee | $1 | Monthly Basis |
π‘ Important: USD Virtual Card Maintenance Fee Handling
The USD Virtual Card maintenance fee is handled differently from other products. This fee is deducted directly from your card balance by the card provider, not your wallet. Therefore, they don't create lien balances on your chipper wallet balance. To read more about the USD Virtual Card maintenance fee, please click here.
How Lien Balance Works
Initial Fee Collection Attempt
When a fee is due, Chipper will initially try to deduct it from your wallet balance. During this attempt, you'll receive a notification about the attempted deduction, regardless of whether it succeeds or fails.
Insufficient Funds Scenario
If your wallet doesn't have enough funds to cover the fee, you'll receive a notification explaining that the attempt was unsuccessful.
Creation of Lien Balance
After the initial unsuccessful attempt, the system will create a lien balance for the owed amount. This lien balance represents the fee(s) you owe and must settle. The amount owed will be automatically deducted the next time you add funds to your wallet.
Automatic Collection
When you add money to your wallet, any existing lien balance will be automatically deducted from the newly added funds to settle the owed fees.
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