When you overdraft or owe money to Cash App, it appears as a negative account balance.
Typically, this happens when there aren’t enough funds in your Cash App to cover the late charge, and need to pay for your outstanding balance.
Yes, you can have a Negative Balance on Cash App. Reasons for Cash App Having a Negative Balance include: 1. Delayed Charges and Secondary Charges 2. Temporary Holds by Online Retailers 3. Disputed Payments 4. Insufficient Funds to Cover Refunds or Reversals 5. Glitch & App Bug Updates.
What is Cash App Negative Balance?
A negative Cash App balance is when your balance is below zero and overdrafts your Cash App account when you don’t have enough money in your account for your transactions. Fund your Cash App Account to fix the negative balance problem.
Reasons for negative balance on Cash app
You can have a negative balance on the Cash app for a few possible reasons.
- Insufficient Funds to Cover Refunds or Reversals
- Disputed Payments
- Involvement in Online Scams
- Temporary Holds by Online Retailers
- Your Cash App account balance could become negative if your transaction is an overdraft in the case that you don’t have enough funds in your Cash App to cover the charge.
Please resolve your negative account balance as soon as possible.
If your Cash App wallet displays a negative balance, there aren’t enough funds in your Cash App account to cover the late charges and fees of the retailers. To avoid the issue, it is often advised to have an extra few dollars if there are any extra late fees or Cash App will overdraft and your balance will go into the negative.
After that, you won’t be able to use the account for making money transactions unless you fund your account.
>> Read: How to Cash Out on Cash App without a Bank account?
How to Fix a Negative Amount on Cash App: Step-By-Step
The simplest way to solve the negative balance in Cash App is to pay for the negative balance by funding your cash app account wallet.
Here’s a tutorial to fix a negative balance on Cash App:
Total Time: 20 minutes
1. Pay Off Delayed and Secondary Charges
Charges that appear on your account long after the initial purchase, such as tips or additional fees, can push your Cash App balance into the negative.
For example, if you make a payment at a hotel and add an in-room dining bill later, the authorized amount may exceed your available balance, resulting in a negative balance.
2. Fix Temporary Holds by Online Retailers
When you make a purchase from an online retailer using your Cash App card, they may place a temporary hold or charge on your account.
If there’s a delay in shipping the item, the hold amount may be returned to your available balance after a certain period. However, if you’ve already spent the funds, and the charge is completed later, it can lead to a negative balance.
3. Solve Disputed Payments
If someone sends you money on Cash App by mistake, and you accept and spend it, they can dispute the transaction with Cash App.
If the dispute is resolved in their favor, the funds will be removed from your account, potentially resulting in a negative balance.
4. Add Money for Insufficient Funds to Cover Refunds or Reversals
If a refund or reversal is initiated for a previous transaction, but you don’t have enough funds in your Cash App account to cover it, your balance can go negative.
Unlike a traditional bank account where you need to understand your Bank’s Overdraft Fees. Cash App doesn’t charge any for it.
So, that’s a huge bonus.
If your negative balance doesn’t get fixed after you have added money to your Cash App account, you need to contact the Cash App support team to solve the issue.
Having a Cash App balance in negative value is not a common phenomenon. If you do have it, we would advise you to touch with Cash App support and try to solve the problem and clarify it.
If the negative balance is warranted, you will be required to pay for the negative balance by funding your account.
However if the (- 450) amount is shown due to an error, glitch, or technical mistake and is not warranted, Cash App support can help resolve the issue.
Why does my cash app have a negative balance?
Cash App can have a negative balance when Online retailers put a temporary charge on your account when placing your order, then complete the charge after your merchandise is shipped.
Another example would be a diner or a restaurant may put a temporary charge on your account when you ask for your check and process it later including the tip.
>> Read: Can Cash App Send Money to Zelle?
So, in the case that if there are not enough funds in your account to cover the charge, your balance could go negative.
Another instance would be if someone accidentally sends you money and you refused to send it back. They can then do a payment dispute and chargeback from your bank.
So, if you have spent the money, your Cash App account will be in a negative balance.
How does Cash app get a Negative Balance?? Can you spend more than your balance?
The answer is: YES and No.
It can happen but not necessarily if you try to do it intentionally.
For instance, if you have $1,147 dollars in your Cash App balance and if you wanna buy an item online which is $1,500 (more than your balance) the order won’t go through because it cost more than your available balance.
Another possible reason why your balance can go negative is a Pending Dispute or Refund.
For instance, if you have $0 in your Cash balance and someone sent you $30 dollars by accident, the person can go into Cash App dispute process and they might hold the money in your account.
But what happens if you already spent the money? Then, yes, it’s possible your account will show a negative -$30 balance until the dispute is solved. Maybe the spent funds can be refunded or you’ll need to pay the amount back.
A negative Cash App balance means that you will not be able to use your Cash App account to send money to others. Unfortunately, your account will remain will not allow any sending activities until the negative balance is resolved.
To determine the amount owed and pay the negative balance, you have several options: Open the Cash app and add funds to your account.
Does Cash App Charge Overdraft Fees?
No, Cash App does not charge overdraft fees with the Cash App and Cash Card.
An overdraft fee is a fee that is charged when payment exceeds the available balance from your bank your bank covers the transaction as part of an overdraft protection service and the bank then applies the fee to your account.
Cash App doesn’t charge any overdraft fees, not clearance fees, but your bank might charge them.
Summary
Did you wake up to a negative balance in your account? While you might not be familiar with it, charges that show on your account long after a purchase and secondary charges such as tips can appear in your balance in the negative.
Having a negative balance in your account will read or show as -$10, -$40 depending on the account’s overdraft amount.
Given that Cash App’s negative balance is relatively new, there are lots of questions about it. One of the popular questions is about the – balance account.
Hopefully, we help you grasp some ideas on why your account might have a negative amount on the app which is one of the most popular peer-to-peer money transfer apps in the States.
Given the above many reasons why your account is in a minus value, get in touch with Cash App support to find out why your account has a minus balance.
