You might have seen cash app negative balance in your wallet. A negative balance means that you owe money to the bank or the company in more straightforward language. Usually, 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 you owe to Cash App . Depending on your overdraft value, it will show -$5, -$10, or anything.
In this article, we will discuss everything you need to know about Negative Cash App balance, possible reasons for it, ways to fix, and overdraft fees.
Use the quick links below to navigate through different sections of the article:
Is Cash App Negative Balance possible?
Cash App does not provide an overdraft facility. That means you cannot spend more than your account balance. Talking about Cash Card, it is a prepaid card, and you must have enough funds in Cash App Account to withdraw money.
Similar apps such as Apple Pay and PayPal do not provide overdraft facility. In contrast, many traditional banks offer overdraft facility and charge some fees accordingly.
Cash App doesn’t provide an overdraft facility; still, its balance can go negative, and there are several reasons for the same.
How does Cash App get a Negative Balance?
Cash App does not offer an overdraft facility; still, its balance can go negative. There are two main reasons for Cash App getting a negative credit:
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Late Charge
Late charges and secondary charges may turn your balance negative.
Online retailers sometimes put a temporary hold on your payment till the product is delivered. If the funds in your wallet are not sufficient at the time of deduction, your funds will go negative, meaning that you owe money to Cash App.
Similar holds by restaurants and secondary charges like tips result in a negative balance.
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Disputed Transaction
Let’s say that there was a wrong transaction to/ from your account. Cash App reverts or corrects the transaction when timely reported to Cash App. If, during the settlement, the amount has to be deducted from your account, and you don’t have enough funds, your balance will go negative.
Can you spend more than your balance on Cash App?
Unlike most traditional banks, you cannot spend more than your balance on 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 can go below zero if there are insufficient funds at the time of late or delayed payment settlement.
You can spend more than your balance by using a credit card that offers an overdraft facility. The crux of the facility is that there is usually a clearance or overdraft fee associated with it.
What are the reasons for Negative Cash App Balance?
Since you cannot spend more than available funds on Cash App, it is understandable that the negative funds are not deliberate. If your Cash App balance is below zero, there can be one of the few reasons behind the same.
- Your payment for an online purchase might be on hold, but when the retailer had to deduct the amount from your Cash App Account, there were not enough funds. In that case, company had to pay for it because of which your balance has become negative.
- Or, the negative balance might be due to disputed payment settlement when you had insufficient funds.
How To Fix Cash App Negative Balance?
Cash App showing negative balance means that you owe money to the company, and to fix this, you need to add funds to your account. You have to pay Cash App by adding funds in your Cash App Account. If you don’t add up to fix the negative balance, you cannot make further payments.
Negative Balance is not a very common thing for Cash App users. If you are seeing a negative balance and cannot recall the reason for it. In that case, you are advised to contact Cash App Customer Support.
The negative balance can be an error or a glitch in the app that customer support can fix without you paying a cent for it.
Does Cash App Charge Overdraft Fee?
No, Cash App does not charge an overdraft fee for negative funds to its users.
An overdraft fee is a fee that is charged on customers when their payment exceeds their available balance as per the bank’s overdraft facility.
Traditional banks offer overdraft facility through credit cards if you have good transaction history with the bank. Banks offer overdraft facility against FD (Fixed Deposit) as well as on your salary or corporate account.
Since Cash App does not allow overdraft, it does not charge overdraft fees or clearance fees on its users, and that’s a huge bonus. The Negative Balance is because of late deduction only.
Conclusion
Negative Balance is a relatively new thing for Cash App users. Cash App does not offer an overdraft facility; still, there are reasons for which this might happen.
Having a negative balance won’t allow you to make payments, so it is suggested that you fix it as early as possible. You can fix the Negative Balance by adding funds to your account or by contacting Customer Support, whatever the case may be.
Unlike traditional banks, Cash App does not charge overdraft or clearance fees for the negative balance.
FAQs
Can I make payments with Negative Cash App Balance?
No, you cannot make payments with a Negative Cash App Balance. To start sending money again, you have to add funds in your Cash App Account to make the balance positive.
Can I accept money with Negative Cash App Balance?
Yes you can accept money as usual even with Negative Cash App Balance.
What is the overdraft limit on Cash App?
Cash App doesn’t provide overdraft facility. The negative balance is due to late payment settlement.
