If we have a Varo Bank card, we likely want to use the overdraft for some purchases where we do not have all the money available. However, on many occasions, we wonder why our Varo overdraft is not working and why we cannot make our purchases.
We must consider that Varo allows us to perform an overdraft of up to $50. However, we will have to meet some requirements for our account to be eligible, so not all users will be able to have it.
How to activate the overdraft in Varo?
Varo will offer us an overdraft of up to $50 without any fees, as long as some conditions are met. We will be able to activate our overdraft in Varo following these steps:
- Open the Varo application.
- Login with your account.
- Go to the Checking section.
- Tap on Varo Bank Account.
- Select No Fee Overdraft.
Once we have done this process, it will be activated in our account, which comes with some conditions. To be eligible, we must make at least five purchases with the Varo Visa debit card each calendar month. We will also have to receive payments or direct deposits of at least $1,000 each month into our Varo Bank account.
The limit for overdraft without any fees is up to $50. However, we are also offered cash advances with which we can get up to $100 with a fee. But, we can also opt for a cash advance of up to $20 with no fee, as long as we are eligible.
Why doesn’t the Varo overdraft work?
There are different reasons why the Varo overdraft may not work, among which we will find the following:
We do not meet the eligibility requirements
To access the service, it will be essential that we fully comply with some requirements, and if we are not eligible, it will simply not be eligible for us. If we do not meet the conditions mentioned above, we will be unable to access the service.
If we have not turned it on
One of the most likely causes for the overdraft not working is that we have not turned it on. Keep in mind that, for us to use the service, we will first have to activate it from the application, or else we will not be able to access this service.
Using it for cash advances
We commonly confuse the Varo overdraft service with the Varo advance service, but they are two completely different services. For the Varo advance service, we can have a total of up to $100 with a commission of up to $5.
To opt for the Varo Advance service, we must fulfill the condition that our account is at least 30 days old and has a $0 or higher balance. We must also have received deposits in our Varo account of at least $1,000 in the 31 days before application.
We cannot have our account overdrawn or closed to make this request. These requirements are evaluated daily, and our payment history will be reviewed monthly for any credit increase.
We have not paid on time
If we have used overdraft in the past but have not paid on time, our account will be flagged. This means that we will not be authorized to use the service because we have not paid on time, so it is always better to make our payments on time to avoid this inconvenience.
We make very frequent use of the service
Another potential reason it may not work is that we use overdrafts too frequently. This can cause Varo to block our access, even if we make timely payments for the service. In most cases, waiting a few days or weeks for the service to be re-established in our account will be enough.
Server problems
Sometimes Varo’s server may have some problems, and in these cases, there is not much we can do about it. In these cases, we can only contact the different support channels to find out if they are having problems with the service. However, this is rare, and most problems occur on the customer side.