Fail-safe and Overdrafts

We use an automatic fail-safe mechanism that kicks in if a transfer from Qapital would leave your funding account with less than $100.

The overdraft fail-safe is designed to help prevent overdrafts, but due to the nature of ACH transfers, it does not recognize any transactions that are made after the Qapital transaction is intiated. To avoid the possibility of an overdraft, monitor your deposits into Qapital, make sure you have enough funds in your external funding account, and don't rely solely on this fail-safe. If you are worried you won't have enough funds to cover a transfer from your funding account into Qapital, pause your rules and cancel transfers in the app.

For the fail-safe mechanism to operate, your external account needs to be verified with Qapital. Accounts will be automatically verified after a few transactions to or from Qapital. New accounts, accounts undergoing a funding account change, or accounts experiencing a connection error may not be considered verified.

Remember: When we transfer money from your checking account to your Qapital account, this is done in batches. These transfers are sent up to four times per week, Monday through Thursday. Qapital is not responsible for overdraft or insufficient funds fees that your financial institution might charge. Also keep in mind that the fail-safe is not working with your membership fee.

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