Logging into your bank account and finding a negative balance can be a nerve-wracking experience. It’s even worse when that negative balance is in the thousands or more. Unfortunately, this is exactly what happened to Cash App users in 2023. Not once, but twice.
The first negative balance incident occurred in the early summer, causing frustration and confusion among users. However, it was the second incident that was truly alarming. Users were hit with negative balances once again, but this time, something far more sinister was at play. Keep reading to find out what happened.
June 2023: A glitch resulted in multiple double charges for Cash Card holders
In June 2023, a technical issue caused some Cash App customers to be double charged for their transactions using Cash Card, a free debit card that pulls funds from a person’s Cash App balance instead of their bank account. The issue was discovered on Monday, June 26, after several Cash App customers filed complaints with the mobile payment service.
Initially, some customers suspected fraud on the part of the retailer, but after small business owners added their voices to the conversation, it became clear that the issue was with Cash App. Customers took to social media to complain about the glitch and seek clarification on the issue.
Cash App eventually acknowledged the issue and released a statement vowing to refund any double charges. The company also promised to notify affected customers of the issue. If you were impacted by the Cash App double charge glitch, you can expect a refund for any duplicate charges resulting from the issue.
Sept. 2023: Things took a turn for the worse as people tried to scam Cash App out of millions of dollars following another glitch
Cash App, which is a widely used mobile payment service, had a problem in September 2023. There was a mistake that let people add a lot of money to their Cash App account without taking any money from their bank account.
Due to this error, individuals were able to withdraw additional funds from their Cash App accounts and utilize them for online purchases, including shopping on Amazon and ordering food from establishments like McDonald’s. Some users even claimed to have withdrawn as much as $40,000 during this time.
However, once the glitch was fixed, Cash App became aware of the illegal hacks and users began seeing a negative balance in their accounts. More than several Cash App users are now looking at thousands upon thousands of dollars of debt.
I stumbled upon the cash app glitch videos and they're hilarious. Basically cash app screwed up and allowed people to add tens of thousands to their cash app account without it getting pulled from their bank. This information found its way online. Well, judging by the videos it… pic.twitter.com/41kdfsjUSN
— 9mmSMG (@9mm_smg) September 13, 2023
Cash App’s terms of service state that after 45 days of an overdrawn account, Cash App will begin steps to retrieve the money. This starts first with pulling funds out of linked accounts, such as debit cards, credit cards, and bank accounts. After 45 days of an overdrawn account, users forfeit the right to stop these payments.
Finally, Cash App ends with this sobering detail: “We might contact you or take other legal actions to collect amounts due. The Company may freeze, withhold, or remit funds in your Account in response to a subpoena, court order, search warrant, notice, or other binding order from a governmental authority or third party, including but not limited to tax levies, garnishment orders or lien notices.”
In other words, those who tried to scam Cash App out of money during the glitch are in deep trouble. The best course of action for these users is to return the money they stole before it’s too late.
Frequently Asked Questions
Is there a way to avoid overdraft fees on Cash App?
Unfortunately, there is no hack or workaround to avoid overdraft fees on Cash App. If you do not have sufficient funds in your Cash App account to cover a transaction, you may be charged an overdraft fee.
To avoid this, make sure to always have enough funds in your account before making a transaction.
Why does Cash App sometimes not work with Apple Pay?
Cash App may not work with Apple Pay if there is a technical issue or glitch. This can be caused by various factors, including outdated software, connectivity issues, or problems with your Apple Pay account.
If you are experiencing issues with Cash App and Apple Pay, try updating your software and ensuring that your account is properly set up.
What happens if I owe someone money on Cash App?
If you owe someone money on Cash App, you can easily send them a payment through the app. Simply enter the recipient’s username or phone number, enter the amount you wish to send, and confirm the transaction. If you do not have enough funds in your account to cover the transaction, you may be charged an overdraft fee. To avoid this, make sure to always have enough funds in your account before making a transaction.
