Cash App has presented itself as one of the best platforms for peer-to-peer transactions. Furthermore, people are now using it as a bank account.
Many users rely on the app because it is safe and secure. Besides, it complies with all the security standards designed for a financial instrument.
Another factor that makes the app even safer is handling disputes and unauthorized payments.
So, how does the Cash App handle suspicious transactions?
An unauthorized transaction involves someone using your debit card on Cash App without permission. The transaction could be an erroneous or unauthorized debit or fraudulent payment.
Cash App has several ways of handling it, including canceling the payment (if still pending) and locking your card to avoid further damage, especially if you lost your Cash Card.
Ideally, several reasons can explain why there is an unauthorized transaction on your Cash App account.
Why your Cash App has an unauthorized transaction
An unauthorized transaction in your Cash App account can occur based on several factors:
- Your account has a recurring subscription that you canceled.
- A merchant charges you the wrong amount.
- A duplicate transaction of the same item you purchased and paid for has occurred.
- Fraudulent transaction, especially after somebody has compromised your account.
You are more likely to see an unauthorized transaction in your Cash App account if you lost your Cash Card and somebody used it to make purchases.
How Cash App handles unauthorized transactions
Cash App has many ways of handling unauthorized transactions. They include:
1. Canceling fraudulent payments
Cash App monitors user accounts for any suspicious activity. Thus, even before a fraudulent or unauthorized payment occurs, the service will cancel the transaction to prevent a charge on the user’s account.
The funds will be returned to the Cash App balance or a linked bank account.
2. Contacting a merchant
Cash App advises contacting your merchant once you suspect you did not authorize a Cash Card payment.
In this case, Cash App cannot cancel the payment but the merchant. If the payment is still pending, contacting the merchant is the best option to allow them to cancel.
Once done, getting the refund will take up to ten business days. Contact the merchant before ten days elapse if you have any questions.
3. Dispute the transaction
Generally, Cash App requires users to contact the merchant directly to resolve an unauthorized transaction, especially if it is pending.
But if the merchant cannot help, the service recommends that a user should contact Cash App customer service to dispute the transaction.
Here is how to file a dispute using the Cash App mobile app.
- Go to your Cash App home screen.
- Tap on the Activity tab.
- Select the questionable transaction.
- Tap on the three horizontal dots (…) in the top right corner of the screen.
- Select Need Help & Cash App Support.
- Tap on Dispute this Transaction.
How the dispute process works
The Cash App dispute process is straightforward. After filing it, Cash App will investigate the claim and may file another dispute with the card network.
Then, the merchant will get enough time to review the questionable transaction. Once they collect all facts, the card network will decide on the next steps and notify the user.
But as the process continues, Cash App will notify the user of updates through their registered email.
How long does a Cash App dispute take?
It can take up to ten days to process the dispute if the merchant accepts a customer’s request for a refund.
However, the process may take longer if the merchant rejects the request. That is because the user must file another complaint with Cash App for further investigation and resolution.
Can Cash App transactions be traced?
It is not possible to trace Cash App transactions. However, you only have access to your transaction history.
Besides, Cash App’s terms state that the company can only provide access to a user’s transaction history if requested by the authorities, including the police and tax creditors.
Will Cash App reimburse stolen money?
Technically, Cash App does not reimburse stolen money. However, it allows the user to communicate with the merchant or recipient and ask for a refund.
Also, users have the flexibility of canceling pending transactions and disputing a transaction if the recipient will not refund.
Nevertheless, if somebody has stolen your money and the transaction shows pending, you will get the funds by canceling the transaction. Here is how:
- Log in to your Cash App account.
- Tap on the clock icon to view recent activity.
- Locate the fraudulent transaction.
- Tap on the fraudulent transaction.
- Look for a link labeled Cancel.
If you do not see the Cancel link, the transaction is final and not reversible. You can only request a refund or file a dispute. Otherwise, click on the Cancel link if the button is available.
You can also prevent further Cash Card transactions by reporting your Cash Card as stolen via the app:
- Go to your Cash App home screen.
- Tap on the Cash Card tab.
- Tap on your Cash Card image.
- Select Problem With Card.
- Tap Card Stolen.
Next, confirm with your PIN or Touch ID to complete the steps.
Can banks dispute a Cash App transaction?
Banks can dispute a Cash App transaction if you link your account to a credit or debit card. In that case, the issuing bank will file a dispute for the transaction funding the account.
Cash App handles unauthorized transactions in different ways. First, the service will cancel any suspicious payment and refund the money to the user’s account.
It also allows the user to contact the merchant to cancel or refund the payment. Finally, you can report someone on Cash App and get your money back by disputing the transaction.
It is often easier to cancel a pending transaction than a completed one. Getting a refund may take ten days or more.