You may wonder How Can I have a negative balance on Cash App? Yes, my dear, you can have a negative balance on Cash App, and it is not a big deal. It is fixable?
Cash App allows its users to go overdraft and don’t worry you won’t be charged an extra fee as your bank does. Cash App allows its users to return the money free of cost. Do you have a negative Cash App balance?
Many Cash App users face negative balance issues, They wake up and see that their balance is showing a negative number, there is nothing to worry about it, You are not alone in this scenario and I got your back too.
In this article I am going to explain everything that you need to know about Cash App negative balance, What are the reasons of have a negative balance on Cash App? How can you fix Cash App’s negative balance, and much more.
Let’s dive in…
What is a Negative balance?
I want to explain the concept of a negative balance in general so that you can better understand why your Cash App is showing a negative balance.
When your credit card balance is negative it means that now your bank owes you money. You have to pay the funds that you have in negative back to your bank. Bank usually charges you a fee for this overdrawn money.
A negative balance also means that there has been an incorrect transaction has been made. It means that debits and credits were reversed.
So these are the two scenarios that may lead to a negative balance.
- You have used more funds than you have in your account.
- The transaction has been reversed or is on hold.
What is Cash App Negative Balance?
Cash App will allow you to overdraft if your funds are not sufficient for the transaction. Cash App is not a bank so you can’t overdraw a lot of money, You can Borrow money from Cash App.
Once you go overdraft your Cash App balance will show a negative number like -$10 or -$40, depending on how much money you have overdrawn. A negative balance on Cash App means that you now owe money to Cash App. Once you will add funds it will automatically be deducted.
Cash App usually doesn’t charge any overdraft fee. Your bank may penalize you for overdrafts.
Reasons For Having a Negative Cash App Balance
There could be several reasons that your Cash App shows a negative balance. Here I am going to discuss them one by one in detail.
Your Transaction is on Hold
We all like online shopping don’t we? It is easy, it is super convenient and with a platform like Cash App things always are spiced up. So let’s say you have bought something online, and you have paid the money to that retailer.
Retailers have their own policies. Some of them will only charge you when the things have been delivered to you. You of course have paid and Cash App has confirmed the payment too.
The retailers in this case will keep the charge on hold. Once you have received the goods, the money will be deducted from your Cash App account altogether, even if you don’t have enough funds in your account at that very moment.
This will lead to a Cash App negative balance situation. You will see a negative balance in your Cash App account.
Additional Charges
Imagine waking up in the morning and seeing your Cash App balance is negative, you don’t know why has this happened to you, you haven’t bought anything, don’t panic, take deep breaths and let me explain.
Sometimes when you use a service of a company and while going through the process you have unintentionally agreed to pay them extra charges or a Tip to be more precise.
These extra charges are sometimes not charged along with the payment. Once the service is done these charges will be deducted from your account automatically. This will lead to a Cash App negative balance.
Disputed Charges
Let’s wake up again, another great morning and you check your Cash App notifications and see that you have received a gift from someone. What a great start to the day then you go out and spend that money. Later that day you see a negative Cash App balance. How the hell did that happen?
Take a deep breath again, The monetary gift that you had received in the morning has been disputed by the sender.
If someone sends you money by mistake he can file a dispute and Cash App will investigate, if the dispute turns out to be legit, Cash App will be charging that money from your account, even if you don’t have funds in your Cash App account.
This will show your Cash App balance is negative.
Funds are Just Not Enough
Well, this happens to all of us sometimes, If you don’t have enough funds in your Cash App account and you are Wallmart you might run into negative for that grocery that you have got.
Fixes for a Negative Cash App Balance
It is of course not a big issue, you can just have to be a little more confident about your transactions and things will just be fine. Here are the things that you should be taking care of to avoid a negative balance on Cash App.
Don’t Spend the Money on Hold
You know that some merchants will not charge the money until you receive the product. Even if your transaction has been confirmed by Cash App. So if you don’t see any change in your balance after making the payment.
This indicates that your payment is on hold. Don’t spend that money if you want to avoid Cash App negative balance. Because then Cash App will deduct the money from your account even if your funds are not enough.
Never Accept Unknown Gifts
Free money sounds juicy, but it is never a good idea to accept free money or gifts from someone unknown. Especially on a platform like Cash App. The reason that I am forcing on this point is that one, you will end up having a negative balance on Cash App, and secondly, you might get scammed by someone.
Scammers are always looking for people on a place like Cash App, if you don’t know how can you get scammed on Cash App you could be the next victim.
Always try not to accept anything, money, or gift cards from unknown people on Cash App.
Obvious Fixes
You might see these fixes as the first ones on other websites, but I am not gonna waste my words on these ones. Here they are
- Always have enough funds in your Cash App account
- Recharge your Cash App account if you have Cash App Negative balance.
I mean come on, You don’t have to write a blog about these fixes, every sane person knows it. That’s your negative Cash App balance issue solved.
Do I have to Pay Cash App Overdraft Fee?
Cash App is lovely. They are not gonna charge you an overdraft fee. Do you know what is overdraft?
When you don’t have enough funds to complete a purchase your bank jumps in to save your back and covers the transaction on your part, this is an overdraft, The bank does it not because it likes you, but because of the overdraft protection service that it provides to its users.
And banks don’t do it for free, remember, there is no free meal. You will be charged an overdraft fee depending on the bank.
Also, keep in mind that Cash App will never charge you any Clearance fee, there is a lot going on under the umbrella of Cash App Clearance fee. You might lose money if you fall for it, stay informed to stay empowered.
Verdict
You, just like many others can have a negative Cash App balance and it is nothing to worry about, Having a negative balance is okay as long as you pay the money back. To avoid having a negative balance always keep an eye on your purchases.
You should not be accepting any gifts from unknown people on Cash App because they might file a dispute against this money. Always make sure that you have enough funds in your Cash App account to cover your expenses. And always read terms carefully so that you don’t end up paying extra in the form of a “Tip”.
I hope this article was helpful, I have tried to cover everything related to a negative balance on Cash App. Let me know in the comments below if you got the information that you were looking for, or if you ever had a funny instance where you panicked seeing a negative balance on Cash App.
Your comments are very valuable and they help as well as many others, lets’s help each other.
Cheers…
Frequently Ask Questions
Can I Have a Negative Cash App Balance?
Yes, you can have a negative balance on Cash App and you will see the amount negative that you have to return to Cash App. This is the money that Cash App owes you.
Your balance on Cash App can go negative for a few reasons. If you don’t have enough funds and you make the purchase you will have a negative Cash App balance.
You have to clear your dues first before you can use Cash App for any further purchases or transactions.
How does Cash App get a negative balance?
Cash App may get a negative balance for the following reasons
- You did not have sufficient funds to cover the transaction.
- Your payment was on hold and charged from your account altogether.
- Someone filed a Money Dispute charge against you.
- You were charged for “additional charges” or a “Tip” by some company.
Cash App took my money, what to do?
Cash App never takes your money, you will see the deduction in your funds if your payment was on hold, or your purchase was subjected to additional charges by the merchant. Cash App will also take money from your account if you lost a Money Dispute case.