You must have seen a negative balance in your Cash App Wallet. A negative balance means you owe money to the bank or company in a more direct language. Typically, banks charge an overdraft when your payment exceeds the account balance, resulting in a negative balance.
When your funds drop below zero, it shows a negative sign followed by the amount owed by you on Cash App. Depending on your overdraft value, it will show -$5, -$10, or whatever.
In this article, we will discuss negative cash app balance, its possible causes, how to fix it and everything you need to know about overdraft fees.
Is Cash App Negative Balance possible?
Cash App does not provide an overdraft facility. This means that you cannot spend more than your account balance. Coming to the Cash Card, it is a prepaid card, and you must have sufficient funds in the Cash App account to withdraw money.
Similar apps like Apple Pay and PayPal do not offer overdraft facilities. In contrast, many traditional banks offer overdraft facility and charge some fees accordingly.
Cash App does not offer overdraft facility; Nevertheless, its balance can be negative, and there are many reasons for this.
Howdoes Cash AppgetaNegative Balance?
Cash App does not offer overdraft facility; Never theless, its balance can be negative. There are two main reasons Cash AppNegative Balance:
- late charge
Late fees and secondary charges can make your balance negative.
Online retailers sometimes put your payment on hold until the product is delivered. If there is not enough funds in your wallet at the time of the deduction, your funds will become negative, which means you owe Cash App money.
Secondary charges such as similar holds and tips by the restaurant result in a negative balance.
- disputed transaction
Let's say there was a wrong transaction to/from your account. Cash App refunds or corrects the transaction upon timely notifying Cash App. If, during settlement, the amount is to be deducted from your account, and you do not have sufficient funds, your balance will become negative.
Read Also :- Cash App Won't Let Me Send Money
Can you spend more than your balance on Cash App?
Unlike most traditional banks, you cannot spend more than your balance on the Cash App. Cash App is a prepaid wallet, and it offers a prepaid card called 'Cash Card', a debit card that works on the Visa network.
However, your Cash App balance may go below zero if there is insufficient funds at the time of late or delayed payment settlement.
By using a credit card that offers overdraft facility, you can spend more than your balance. The crux of the convenience is that there is usually a withdrawal or overdraft fee associated with it.
What are the reasons for Negative Cash App Balance?
Since you cannot spend more than the funds available on the Cash App, it is understandable that the negative funds are not intentional. If your Cash App balance is below zero, there could be one of a few reasons behind it.
- Your payment for an online purchase may have been on hold, but when the retailer had to deduct the amount from your Cash App account, there weren't enough funds. In such a situation, the company had to pay the price due to which your balance has become negative.
- Or, when you had insufficient funds, a disputed payment settlement could result in a negative balance.
Read Also :- Can You Use Cash App Atm Card?
How To Fix Cash App Negative Balance?
Cash App showing negative balance means that you are owed money to the company and to rectify it you need to add funds to your account. You need to pay Cash App by adding funds to your Cash App account. If you don't add to fix the negative balance, you can't make further payments.
Negative balance is not a common thing for Cash App users. If you are seeing a negative balance and can't remember the reason. In that case, you are advised to contact Cash App customer support.
There may be an error or glitch in the Negative Balance app which can be rectified by the customer support without you paying a cent for it.
Does Cash App Charge Overdraft Fee?
No, Cash App does not charge overdraft charges for negative funds from its users.
Overdraft fee is a fee charged to customers when their payment exceeds the available balance as per the overdraft facility of the bank.
Traditional banks offer overdraft facility through credit cards if you have a good transaction history with the bank. Banks offer FD (Fixed Deposit) as well as overdraft facility on your salary or corporate account.
Since Cash App does not allow overdrafts, it does not charge overdraft fees or withdrawal fees from its users, and this is a huge bonus. Negative balance is only due to late deduction.
Read Also :- Delete Cash App Transaction History
Conclusion
Negative balance is a relatively new thing for Cash App users. Cash App does not offer overdraft facility; However, there are reasons why this could happen.
Having a negative balance will prevent you from making the payment, so it is recommended that you get it fixed as soon as possible. You can fix the negative balance by adding funds to your account or contacting customer support, as the case may be.
Unlike traditional banks, Cash App does not charge overdraft or withdrawal fees for negative balances.
Can I make payments with Negative Cash App Balance?
No, you cannot pay with negative cash app balance. To start sending money again, you need to add funds to your Cash App account to make the balance positive.
Can I accept money with Negative Cash App Balance?
x
Yes, you can accept money with negative cash app balance as usual.
What is the overdraft limit on Cash App?
Cash App does not provide overdraft facility. The negative balance is due to late payment settlement.
