Cash App Overdraft: Can You Have a Negative Balance On Cash App? Updated 2023

Meaning of Cash App Overdraft balance 

Have you ever pondered in front of your Cash App balance screen, staring into the distance, trying to understand why your balance has gone negative? If yes, then you have come to the right place. This post has brought you answers to all the important questions about why and when you can have overdraft your Cash App card balance.   

In simple words, overdraft refers to a feature that allows the account holder to withdraw or spend money more than the available funds in the account or card. Many banks and credit unions let the users overdraft their balance. But, the biggest question is – can you overdraft your Cash App account balance? There is no fixed answer to this question. Generally, one can use as much money as is available in the account or Cash App card. Any attempt of withdrawing or sending money more than the available fund always leads to payment failure on the Cash App. But, there are some particular scenarios under which your balance can go negative.   

Will Cash App let you overdraft? 

Generally, Cash App does not let the users overdraft their balance. Just to be very clear, Cash App mobile application works as a prepaid card. One can spend whatever amount of money is stored in the account using an app or cash card. And when required, users can again load money on Cash App and keep on spending money with ease of mind. That’s how it works and appears to be one of those services that don’t allow overdraft. But the opposite is true. If you get close to the ground level you will come across the condition that might result in having your Cash App negative balance. Let's get into it in more detail in the following section.  

Also Read: How to contact Cash App customer service?

Can you have a negative Cash App balance? Possible reasons 

Wondering why is Cash App showing you a negative balance? There can be two reasons for your negative Cash App balance. First, the charges are applied by the merchant long after purchase. The second reason can be a missing EMI for the loan you borrowed from Cash App. Let’s understand both reasons closely.

The appearances of lateral charges on Cash App are not a common occurrence but it might happen without any prior notification. For example, you ordered online food using a Cash App card. The restaurant put a hold on your payment in the beginning and delivered the order. Then after some time, they charge your card with a tip included. In such a case, if the charges exceed the available balance then the due amount will be shown in form of a negative balance.

In case you have borrowed money from Cash App and forget to pay the EMI then how you can expect that your balance will not go negative. Be informed that Cash App reserves the right to take money without permission from the users if they fail to pay back the dues. And when the dues exceed more than the available balance then your Cash App balance will definitely go negative.    

Can I overdraft my Cash App card at ATM?

No. You can’t overdraft your Cash App card balance at ATM. Note that you can withdraw money from your Cash App only when there is a sufficient balance available that can bear the Cash App withdrawal fee of $2. In the absence of a sufficient balance, your attempt to cash out at ATM will fail.  

How to fix Cash App overdraft balance? 

It is important to avoid the overdraft balance in your Cash App. Do you know why? Because a negative Cash App balance can adversely affect your profile on Cash App. This further might result in a number of restrictions such as unable to get borrow money, a ban on Cash App check deposits, and the appearance of unauthorized cash cards. 

So, consider avoiding having the overdraft balance on your Cash App in the first place. And even if the balance of your Cash App has gone negative then without any second thought act fast and add money to your Cash App account before it is too late.