Cash App has many practical uses, and it even offers a debit card linked to the balance in the app. This debit card is free and has attracted many users. You may wonder if this type of card can go in the negative and trigger overdraft fees.

On average, the Cash Card never overdrafts. This card declines all transactions when there is not enough balance to cover them. As with every other card, there may be some exceptions to the rule.

A Cash App card can be very useful if you have an account on the app. It gives you direct access to your Cash App balance without having to transfer it to your regular bank account. If you have a Cash App card, keep reading to find out how the overdraft facility works on it.

Can a Cash App Card Ever Overdraft?

The Cash App card is a customizable Visa debit card provided for free by the app. Cash App users can easily use this card to do their banking without having to transfer their balance out to a different bank account. While other cards do have an overdraft facility, this is not the case for a Cash App card.

Cash App does not include an overdraft or credit facility on the Cash Card. This means that in the majority of cases, the Cash App card will not be able to be overdrawn. There can be tiny exceptions, but it does not tend to happen due to this facility not being available.

We’ll go into more detail into whether it can happen and what can happen in that case. This will help you be aware of how to deal with this type of situation.

Can a Cash App Card Be Overdrawn at an ATM?

A Cash App card cannot be overdrawn at an ATM. If there are not enough funds available in your Cash App balance, you will not be able to withdraw them at an ATM. An ATM is not able to cause a debit card to go into overdraft unless the balance is there.

The Cash App card is essentially a prepaid card linked to your Cash App balance. It does not withdraw money from any linked accounts, such as your main bank account unless you have deposited the funds into your app balance.

If you want to withdraw money from an ATM with your Cash App card, make sure to have the funds you need available.

Can a Cash App Card Go into Accidental Overdraft?

The lack of an overdraft facility on the Cash App card makes it very improbable to get a negative balance on your account. Despite this, there can be specific situations when your Cash App card may go into accidental overdraft.

Situations where this can happen with your Cash App card can be as follows:

  • A transaction is processed late: You may make a card payment one day, knowing you have enough balance to cover it. When you make it, you’ll most likely think that’s settled, and you won’t check on it again. Sometimes, some merchants can charge you late, even days after you’ve made your order. This may cause a negative balance.
  • A transaction has a secondary charge: This can easily occur when you’re using your Cash App card to pay at a restaurant. The charge for your meal may be charged separately, with a secondary charge following for the tip. This secondary charge is usually delayed, which can cause an accidental overdraft.
  • Pencil/floor limits: Most cards have what’s called a pencil or floor limit, which is a maximum charge that can be made without requiring authorization. It is a very rare thing to encounter on a card with no overdraft facility, especially as this is a limit based on credit history.

Does Cash App Charge Overdraft Fees?

Due to not having an overdraft facility, the Cash App card has no overdraft fees. If you find yourself going into an accidental overdraft, you should contact the Cash App customer support. They will be able to see what happened and see if they can sort out the issue.

The lack of incurred charges for overdraft fees is one of the best parts of not having an overdraft available. It should also give you some peace of mind in case you somehow do get a rare instance of accidental overdraft on your Cash App card.

How to Avoid Cash App Card Overdrafts

To avoid any possible accidental overdraft on your Cash App card, you should keep track of all transactions you are making on it. You may sometimes use it accidentally instead of your main debit card, which can make you lose track of your payments.

The best way to keep track of your transactions is to check your app. If you know that you have paid a specific amount, make sure it has gone out before using whatever balance you have left.

Conclusion

A Cash App card can’t usually overdraft. Cash App does not offer a credit or overdraft facility on the free prepaid debit card they provide with the account. While there can be very rare instances of accidentally going into overdraft, you won’t generally see a negative balance.