Cash App has been an exciting revelation for millennials since its launch. It is lauded for its quickness in sending money and paying bills. However, with the speed of transactions comes more responsibility as it is quite easy to send money to the wrong person. That’s not even the challenge, the main problem is getting the money back. So, this text aims to show what you can do in such a situation.
Did you use Cash App and send money to the wrong person? If you accidentally send money to the wrong person on Cash App, you can try to cancel the payment. To do this, go to your Activity page within the app and tap the payment you want to cancel. From there, tap Cancel Payment. If the recipient has already accepted the payment, you will need to ask them to refund the money.
Cash App has grown in popularity in recent years among the younger generations due to its versatility and speed of transactions.
Currently, Cash App has more than 36 million users which is impressive considering it is only available for US and UK residents.
What Can You do When You Send Money to the Wrong Person?
To understand why it is easy to make a mistake when sending money with Cash App, we have to dig a little into how it works. When a person signs up they are required to create a $cashtag.
It is a unique identifier for each person and when you want to send money, all you need to do is input the $cashtag of a recipient.
The challenge is that there are 36 million people who have to have unique $Cashtags meaning some are bound to look similar except for a letter or two.
Mistaking a letter or character might mean potentially sending money to another person.
It is why users are urged to be careful when making transactions. Another challenge is that since Cash App is so quick in sending money, there is no time to cancel a transaction.
So, what can you do in such a situation? There are normally three possibilities when it comes to transactions. It can either go through, fail, or remain pending for some time.
The first thing you should do when you send money to the wrong Cash App is checking whether the transaction was successful. If it remains pending, there might be hope in reverting the transaction without the need of the recipient.
Pending transactions are usually the result of various reasons such as; server issues, connection problems, lack of funds, outdated app, and others.
To cancel a wrong transaction that is pending you should follow these steps.
- On the Cash App homepage, click on the activity button or the one that looks like a clock on the bottom right. It should show all the recent transactions that you have made.
- Click on the transaction that is pending.
- Click on the options button or the three dots that appear and see whether there is an option to cancel.
- Tap it and it should be done.
Note that not all pending transactions have the option to cancel. At that point, your next option is getting a refund for the transaction.
How to Request a Refund if Cash AppSent Money to the Wrong Person
As explained, it’s easy to make a mistake in making Cash Apppayments whether it is the wrong amount or to the wrong person.
The good news is there’s a way to request a refund, but granting it relies on the recipient.
Here’s the process.
- On your Cash App, click on the activity tab at the bottom right of the home screen
- Select the payment you would like to refund
- Tap on the options button (…) at the top right and select refund.
- Confirm your choice.
Once you complete the refund request, a message should be sent to the recipient asking them if they want to grant a refund on the payment. Depending on the person they can grant it or ignore it. Furthermore, Cash App is not liable for any mistakes clients make during transactions. It is because the company is not FDIC Insured.
FDIC stands for Federal Deposit Insurance Corporation who are tasked with regulating and maintaining stability in the finance systems in a country.
FDIC are the ones who insure the people’s money in bank accounts across the country. Meaning that consumers are protected in case the institution fails or in the event of fraud.
With Cash App, your account is not federally insured and so, Cash App cannot be held accountable in the event you send money to the wrong person or in the case of fraudulent activity in your account. They might be happy to try when you contact them but you’re mostly on your own in such a case.
It is why you need to immediately contact the person you sent it to and try and convince them of the mistake you made. It is better to do it early before they spend the money and to show urgency. Contact them early and try to reason with them.
Cash AppProtects Users Against Unauthorized Transactions
If the money sent from Cash App is part of an unauthorized transaction, they will intervene based on their terms of service.
They will cover you for the full amount of the unauthorized transaction depending on the circumstances of the unauthorized transaction.
According to them, an “unauthorized transaction” occurs if the person did not authorize it and it does not benefit them. So, if a person stole your password and sent money through your account, it qualifies.
The exceptions to the rule include;
- If a user gives their login information to someone and they use the account without the user’s knowledge or permission without contacting Cash App that the transfers by that person are no longer authorized.
- If a user reverse engineers a chargeback with their cash card.
- If a user acts with fraudulent intent
In the case of an unauthorized payment, contact Cash App as soon as possible through the app.
The message here is quite clear, “Double check every detail before the transaction.” Check the $Cashtag, phone number, and even the amount. Avoiding the mistake will save you time and potential stress in the future.
Also, remember not to use Cash App like a bank as it is not FDIC insured; stay safe and be responsible with your money.