Cash App easy to easy-to-go option to make grocery store payments and pay phone bills. So what happens when you make a payment with no balance in your account?
Will Cash App decline such payments or overdraft them in your account? You need to learn what overdraft is and how it works. Let me explain it more.
What Is Overdraft or Overdrew?
In traditional prepaid banking, you must have enough balance in your account to make purchases and payments. Otherwise, the payments will be declined by your bank and it will hurt your credit score. So you need to check your account balance before making such attempts.
The same happens to your Cash App account or debit card and your transactions are declined similar to traditional banks. But activating the overdraft protection in the Cash App will let you make purchases with low balances as well.
Cash App will charge you a fee for providing this cover. It is $1 for the payments below $10 and goes up to $25 for this service. If you see a negative balance in your app dashboard that overdraft you have to pay to Cash App. Here is the complete process to repay the overdraft and clear the negative balance.
How To Repay The Overdraft On Cash App?
If your account shows a negative balance and you are informed about the reason for it. Follow the below steps to repay the overdrawn money on Cash App.
Open Your Cash App On Mobile
First, you need to open and log in to your Cash App on your mobile phone. Once the login is successful go on step no.2.
Connect Your Bank Account
A bank account is necessary to be attached to your Cash App for making payments. It will be used to clear the overdraft credit. However, you may ask someone to send you money with other methods as well.
Click On The Available Balance Option
Now click on the available balance option that is easily visible in your app dashboard. This option is given on the homepage for quick acknowledgment. It will show the Cash Out and Add Cash buttons in the next step. Just click on the Add Cash icon from the app interface.
Add Required Amount To Your Balance
Now choose the required amount from your keyboard that you want to add to the Cash App balance. For example $5, $20, and $50, etc.
Confirm The Payment
The last step is to confirm your transaction through Cash App PIN or face ID. Once you approve this, the balance will be added to your Cash App. That will clear all the negative credit showing in your app.
Can You Overdraft Your Cash App Account?
No, Cash App doesn’t generically overdraft your account balance. However, if you perform a transaction with a low balance in the account, it will be converted into negative credit.
This negative balance can be fixed later on with multiple methods. Here are some details about them.
Methods To Fix Overdraft In Cash App
The overdraft is a kind of debt you have to pay the app. Your Cash App balance runs in minus. Here are a few modes to fix overdrafts in Cash App.
Use A Bank Account
You can fix your overdraft by charging your Cash App account from your bank account. All you need to add sufficient funds to your balance so this is the easiest method to do this.
As a Cash App Member
Ask your family members, colleagues, and friends to fund the overdraft amount from their Cash App to yours. Internal transactions on Cash App are faster, easier, and free as well.
Deposit Your Paycheque
If you don’t find any other way to surplus your Cash App balance, use this method to fix the negative balance in your account. Tell your employer to deposit your paycheque directly into your Cash App account.
The overdraft money will be automatically collected from the deposited amount. The remaining will be added to your balance credit as a plus.
Use Your Credit Card
If you own a valid credit card, then use it to cover your overdraft money. Add the card to your account with some additional details and fund your Cash App with the required credit.
Frequently Asked Questions
Conclusion
In the end, you should continuously monitor your Cash App funds. Allow your app to use funds from your attached bank account in such cases. If you don’t clear the negative balance it may have consequences.
You may face a suspension or permanent ban from using Cash App. Secondly, it will hurt your credibility in the eyes of other financial institutions.
Especially when applying for a car loan, home loan, or any other loan. Frequent overdrafts can dent your credit history thus it is recommended to take all the precautionary measures to avoid overdrafts.
