Racine Cash App user surprised by $100 withdrawal from account

Most American adults use at least one payment app, according to Pew Research Center. One Racine man thinks it’s a convenient way to send and spend money, but in May, he says his money was unexpectedly withdrawn.

RACINE, Wis. - Most American adults use at least one payment app, according to Pew Research Center. One Racine man thinks it’s a convenient way to send and spend money, but in May, he says his money was unexpectedly withdrawn.

David Mack said his finances were already tight before he lost $100. The former ironworker relies on unemployment benefits deposited into a Cash App account. He wrote to Contact 6 after he said $100 was withdrawn from his account without notice.

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"That’s gonna leave me with $20 to last me until next week," said Mack. "The only thing (Cash App has) done is said that the money they’ve taken out is correct."

Cash App is a money-transfer app, not a bank, but it does offer a debit card. Mack uses his card for many retail purchases.

David Mack

Because of a recent surgery, Mack relies on Walmart’s grocery delivery services. The unexpected charge to his account on May 16 went to Walmart.com.

Mack is one of three Cash App users who have written to Contact 6 describing the same issue.

A Walmart spokesperson said: "We are aware of customer concerns regarding an ongoing issue on Cash App. We encourage customers who may be impacted to work directly with Cash App Support at 1-800-969-1940."

Mack said his attempts to get an explanation have bounced him "back and forth" between Walmart and Cash App.

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Cash App

Responding to complaints in a Twitter thread, Cash App’s social account addressed the issue on May 4. The tweet reads:

"Happy to explain here – An error occurred that resulted in Cash Card transactions that were successful for the merchant, but due to a technical error the funds were never collected by Cash App. If affected, we’ve captured these funds to complete the payments."

In an email, Cash App Support told Mack that he made a $100 Walmart purchase on March 30. The $100 was voided on April 7. Cash App correctly captured the money on May 16.

"Their explanation was not very easy to understand or follow," said Constance Alberts, program director at Bank On Greater Milwaukee.

Cash App

Bank On Greater Milwaukee is a collaboration of financial institutions, local government and community-based organizations. It works to connect people with safe, affordable banking options.

Alberts is reviewing Mack’s Cash App and Walmart histories at the request of Contact 6. One week after receiving his paperwork, she had one big question: "Why did it take two months to realize there was an issue with the account?"

Alberts says a typical bank would likely spot this kind of issue immediately and notify the customer.

"When you have a bank account, you have all of these regulatory things in place on purpose to keep you safe," said Alberts. "Cash App is a payment processor, and that’s all it does. It doesn’t regulate who took the money."

Alberts said when Cash App is used for many transactions, as Mack did, it can be hard to track where money is going, especially when there’s a lag time between when a purchase is made and when Cash App releases the money.

"We want to make sure convenience isn’t costing us more," said Alberts.

So is Mack right about his money or is Cash App? Alberts can’t say for sure. More than one week later, she’s still working on it. It begs the question: Should it be this complicated for consumers like Mack to figure out where their money went?

"I’m living day-by-day with the income that we have," said Mack. "That’s a huge impact."

Cash App

Cash App did exchange emails with Contact 6 but did not respond to questions about Mack’s withdrawn payment. Contact 6 sent Contact 6 the following resources:

Customer Service Website
Customer Service Number: 1 (800) 969-1940

Customers can contact Cash App Support through the app, social media, website, mail or via phone:

You can reach Cash App Support by calling 1 (800) 969-1940, Monday through Friday, 9 a.m. to 7 p.m. EST.
The best way to contact Cash App Support is through your app; tap the profile icon on your Cash App home screen, select Support, and navigate to the issue.