The world sees billions of money transfers happening daily across multiple platforms. Cash App simplifies the process of sending funds to family and friends, but there can be times when you want to send what’s in your account to your bank or credit union.
Sending money to your bank account from Cash App is relatively simple.
- Tap or click on the “Money” tab located on the Cash App home screen.
- Choose the “Cash Out” option.
- Select the amount to transfer to your bank. It can be up to the current amount in the account. Press the “Cash Out” command to start the process.
- Choose the deposit speed you prefer for the transaction.
- Confirm your identity by using Touch ID or your PIN.
Some users can send funds instantly. If this option isn’t available, the money is accessible within three business days, and your instant deposit fees get refunded.
A few Cash App transfers fail, even when it seems like everything should be correct. This guide will take you through the options you have in this situation so that you can access your money.
Cash App Transfer Failed: Why Is My Bank Declining My Transaction?
The most common reason a Cash App transfer fails is the financial institution declining it. Banks and credit unions can decide not to accept money from an account for several reasons, many of which are vague. The only way to resolve this issue is to contact the facility directly.
When you initiate a Cash App transfer, it is essential to review the information to ensure there aren’t any typos. If your account numbers, dates, or personal ID are different in the software than what they are at your financial institution, you could see a decline issued because the data doesn’t match.
Should everything be accurate in both accounts, you’ll find that these six reasons for a Cash App transfer failing tend to be the most common scenarios.
1. Card Issuer or Bank Declines the Transaction
This generic denial tends to be frustrating because you need to follow up with the other party about why they’re not accepting money from Cash App. Several reasons could be at the heart of this problem, ranging from an invalid card number to an incorrect expiration date.
Some cards won’t accept money from businesses like Cash App because of KYC and AML laws. These rules are in place to prevent funds from going to criminals or terrorists, but they can interrupt your transactions when your identity isn’t verified.
Banks and credit unions might not accept a deposit from Cash App if your account is frozen.
The best option is to double-check that all the information is correct, then re-submit the deposit request. If it gets declined another time, contact the financial institution to get a specific answer about what is happening.
Although you could contact Cash App’s customer service, it is essential to remember this problem is outside their control. They’ll point you toward your bank, card issuer, or credit union.
The most common reason for this issue involves opening an account without complete verification. You’ll have limited sending or receiving capabilities until you prove your identity. This issue can be especially unpredictable or problematic with prepaid cards.
2. Not Enough Funds in the Account
If you want to transfer money from your verified bank account to Cash App and it gets declined, it could be due to insufficient funds being present. You need to have enough to cover the request, or the financial institution has the right to reject it.
This problem gets even bigger if you have overdraft protection active on your account. The bank might decide to grant the transfer, but then charge you a $37 fee (or more!) for this convenience.
Before initiating a transfer, please remember to ensure there’s a sufficient amount available to cover what you need. The same works in return. If you don’t have enough money in your Cash App balance, the software won’t even start the transfer process.
3. Identified as Potentially Fraudulent
When you see this transfer failure occur, you’ll receive a warning that says the payment was canceled for your protection. This issue comes back to the know-your-customer and anti-money laundering laws that exist throughout the world today.
The first rules were passed in response to the events surrounding September 11, 2001. American politicians wanted tools to ensure that no funds could go to terrorist networks, so they tightened the rules regarding identity verification.
These laws apply to more than just banks and other financial institutions. Anyone who deals with large sums of cash must usually comply with these rules, including online casinos and cash payment apps.
It isn’t feasible for these checks to be manual. Cash App and financial institutions use algorithms to flag any suspicious activities, stopping them before they are completed.
You can reduce the risk of this problem happening when transferring money from or to Cash App by taking the following steps.
- Only link accounts to Cash App that matches your name on other accounts.
- When sending or receiving money, only work with people and businesses you know.
- Create a healthy transaction history by using the app frequently.
- Confirm the $Cashtag or recipient phone number before completing transactions.
As a fifth step, please complete the KYC and AML requirements at your local financial institutions to ensure they’ll send and receive money from Cash App.
4. Technical Problems
It would be nice if computers and the internet were perfect. That would mean your money management tools would always work to increase your portfolio’s net worth. You could sit back, enjoy the profits, and never have to worry about a failed transaction.
Unfortunately, we live in a world where technical problems exist. Software crashes can happen unpredictably, and hardware wears out as time passes.
Even a power outage can be enough to cause a transfer request to fail because it corrupts the data sent to each provider.
If you’re having issues with a money transfer, it might be helpful to check on the technical health of each institution. Most businesses post when they’re dealing with upgrades or outages.
These issues can be inconvenient, but there isn’t much you can do about it. Return to the transfer request when you know everything is back up and working.
5. Incorrect Information
It’s not unusual for people to transpose digits or combine account information from two or more resources when trying to transfer money. If the details are invalid, the process won’t start.
The errors can look similar to the other issues that cause transfers to fail, so it can take some research on your part to figure out what is happening.
6. Hit the Cash App Limit
When you don’t have a verified Cash App account, you’ll have limits placed on what you can send or receive from it. American customers in this situation are limited to $250 per week or $1,000 in a 30-day period.
If you’re in the UK, your limits are £500 per week when receiving money or £250 weekly when sending it.
Some people need more flexibility with their Cash App account than those limits offer. You can verify your personal information to get increases. In the United States, that means you’ll need to supply the following data.
- Your verifiable birthday.
- The legal first and last name that you use.
- The last four digits of your Social Security number.
You cannot use nicknames for the verification process, even if they’re what you typically use.
If you want to get the Cash Card, which is the debit card associated with the Cash App account, you’ll need to verify it. Although it takes a little effort to go through this process, it’s a one-time investment. Anyone wanting to use this option for a long time will find it helpful.
Additional documents might be required to verify your identity in some areas. That includes your birth certificate or a government-issued ID to determine that your requests are authentic.
Once you’ve passed these verification steps, you’ll see increases in your limits that should stop future declines.
If you’re under the age of 18, you cannot go through these verification steps. You’ll be limited to what you can spend until you’re permitted to submit those documents.
What Options Does Cash App Support?
Cash App supports most of today’s major credit cards, including Visa, Mastercard, Discover, and American Express. Most prepaid cards are supported, but depositing funds to them doesn’t work. Transfers to PayPal, business debit cards, and ATM cards are not supported.
After successfully transferring money from Cash App to my bank account several times, I woke up to find that a recent request was denied.
I went through the details, ensured everything was correct, and attempted to put money into my bank account a second time. It was denied again.
When I reached out to Cash App, they told me it was a problem on the bank’s end. Since that was on a Sunday and Monday was a holiday, I had to wait until Tuesday to see what was happening.
After waiting 20 minutes on hold, I explained my situation. The representative told me there shouldn’t be any problems, so try the transfer again.
That’s what I did. It was denied a third time.
By now, it’s been a week. I still don’t have access to my money beyond the options available through Cash App. I got on the phone again and told my bank’s rep that I wasn’t leaving until this situation got sorted.
It took an hour, but they finally figured out the issue. Instead of counting each of the previous transactions as an independent request, an administrative error had lumped them all together into one amount. The declines were happening because the AI algorithm thought I was exceeding the amount I was permitted according to local policies and laws.
My bank found a few other customers in a similar situation, corrected the problem, and the Cash App transfers started working.
It isn’t always a quick fix, but there are solutions to be found when your transactions get declined. I’d encourage you to be proactive, polite, and persistent. You’ll eventually get to the answer you need.
