To help you avoid overdraft fees when we transfer money from your funding account to your Qapital Account, our Failsafe Mechanism pauses all deposits that will leave you with less than $100 in your funding account as well as pause all your Rules. That deposit will remain paused until the balance in your funding account is large enough to cover the deposit and still leave $100 in your funding account. If the deposit still cannot be sent after 14 days, the paused deposit will be canceled permanently and your Rules will automatically resume.
Overdrafts on our customer’s checking accounts are something we've gone to great lengths to try to prevent, but unfortunately the safeguard is not 100% perfect due to the nature of the ACH system we use to transfer money.
For instance, please be aware that our Failsafe Mechanism cannot predict future or unsettled transactions. That means sometimes a transfer to your Qapital Account will coincide with a transfer somewhere else (such as a bill payment, ATM withdrawal, debit card purchase, etc.) If a transfer to your Qapital Account initiates before these other transactions settle into your funding account, then the Failsafe Mechanism won't trigger, since at that time there is enough money in the account to complete it. If those other transactions settle prior to the Qapital transfer, it will cause your funding account to drop the balance below the $100 threshold we're typically able to prevent.
If you have more questions, you can reach out to our Customer Success team for more information or help with overdrafts.