It is official—it is now possible to overdraft on Cash App.
Cash App overdraft lets you freely overdraw up to $200, depending on what you actually hold in your Cash App account balance. But this will only be available for eligible customers who meet the requirements to overdraw.
If you need to overdraw on Cash App, I'll show you how it actually works and how to qualify for this feature.
How Does Cash App Overdraft Work?
If you've ever overdrawn on a credit card, you should have an idea of how overdrafting works. The same principle applies when overdrawing on Cash App, with a major difference in the charges and the limit.
Yes, overdrawing on Cash App is free, and you can overdraw up to $200 on your Cash App account balance (with an initial limit of $50) without incurring any fees, provided you meet the requirements, which include:
- Having an activated Cash App card, and
- Receiving direct deposits of up to $300 or more in paychecks every 30 rolling days or
- Spend $500 with your Cash Card.
Your eligibility for this free overdraft is solely Cash App's decision, and there's a great chance that you'll lose access to your free overdraft if you don't meet the aforementioned requirements—and this goes the same for those who already are overdrawing.
How to Use Cash App Overdraft
This is where things get interesting—using your free overdraft coverage.
Cash App overdraft isn't as flexible as the normal funds you have on your account balance. You can only use your free overdraft when making purchases through your Cash App card. You cannot use it to send money to other Cash App users or pay bills.
If you have an available balance of, let's say, $70 and want to make a purchase of $100, Cash App will let the transaction go through, provided you qualify for overdraft.
There's one advantage of using your overdraft at stores, though—you can get free cashback on eligible purchases. A few users have confirmed getting cashback with their Cash App overdraft, so why don't you give it a shot?
Cash App Overdraft Coverage
Cash App offers free overdraft coverage for up to $200, but this doesn't mean it is the limit imposed on your account. At the start, the limit is typically $50, and if your account qualifies for higher limits, there's a great chance you'll reach this $200 coverage. Attempting to overdraw over the set limit for your account won't work.
Let me break things down with a simple example.
Let's say your overdraft coverage is $50—you'll only be freely covered up to this amount when overdrawing with your Cash Card. This goes the same for someone whose overdraft limit is $100, $150, or $200.
Cash App Overdraft Limit
While overdrawing on Cash App may seem great, it comes with a few limits, though, which include:
- You can only spend the overdraft on purchases with your Cash App card; you can't send it as a payment through the app.
- You can't overdraft on ATM withdrawals or ACH transfers.
- You cannot overdraft with a sponsored account for teens.
Cash App Overdraft Fees
There are no fees for overdrawing on Cash App—it is completely free!
Can You Get Cash Back on Cash App Overdraft?
No, you cannot get cash back even when overdrawing with your Cash App card.
For sure, the Cash App card comes with cash back on purchases, but this cash back is only available for standard (or let me say normal) purchases and not purchases made with an overdrawing balance.
Can You Hack Cash App Overdraft?
There's no way to hack Cash App overdraft, and even contacting support won't help increase your overdraft coverage limit, as Cash App says.
So the best way to hack Cash App overdraft is to qualify for higher limits by receiving more funds in direct deposits and using Cash App frequently for transactions. In fact, build an account history.
Final Thoughts
Overdrawing has become a common practice nowadays.
If you use Cash App for making purchases at stores, you'll be glad to know that you can get a free overdraft coverage of up to $200 that you can use for purchases through your Cash Card.
However, you'll need to meet the requirements to qualify for free overdrafts on Cash App. This guide compiles everything you need, from how it works to the limits imposed, to help you better leverage the convenience offered by this feature.
