Backup coverage

To back up your Robinhood spending account, you can set up backup coverage to automatically transfer money from your Robinhood individual investing account to complete a transaction.

If you are establishing a new Robinhood spending account, you’ll be prompted to enable Backup coverage during the account opening process. Otherwise, follow the steps in How do I turn it on or off.

No, backup coverage is free.

You can turn backup coverage on or off at any time for your individual investing account in the app:

1. Select Account (person icon) → Menu (3 bars) or Settings (gear)
2. Select Spending → Backup coverage
3. Switch the toggle On or Off

If a transfer settles higher than expected, like for tips on card transactions, the total transaction might require multiple backup coverage transfers from your individual investing account to your spending account.

Your transaction might be declined even with backup coverage turned on for the following reasons:

• Something other than a debit card purchase, an ATM withdrawal, or a cash back request, such as an NOA withdrawal, including third-party transactions like direct deposits from your bank, payroll, or Venmo.
• You reached your spending limit, which is the same as the current limits for your spending account.
• If your individual investing account doesn’t have enough money to cover the transaction.

A partial approval is when the merchant allows for multiple forms of payment for a single transaction. Partial approval eligibility is determined by the merchants, and not by Robinhood.

Backup coverage is turned on for partial approval transactions when you have multiple available account balances in both your spending and individual investing accounts with Robinhood. For example, if your spending account has insufficient funds, your brokerage cash will be used for the purchase. If your brokerage cash is exhausted and can't cover the balance, the merchant will ask you for another card or form of payment for the remaining balance owed.

No, backup coverage won't pull from available margin within your individual investing account for users with margin investing enabled. It will only pull from your uninvested brokerage cash. If all uninvested brokerage cash is exhausted, then your card transaction will be declined.

If you have recurring investments set up in your individual investing account, you can still use backup coverage.

Keep in mind, both your recurring investments and backup coverage use the same uninvested brokerage cash. If you’re regularly using backup coverage to fund your debit card, ATM withdrawal, or cash back transactions, your available brokerage cash can be exhausted. If you have a recurring investment set up but don’t have enough brokerage cash for it, that investment will be skipped.

If you’ve opted in to the brokerage cash sweep program, backup coverage may affect the amount of interest you earn. This is because backup coverage uses your uninvested brokerage cash to cover what’s in your spending account, which funds your debit card, ATM withdrawal, or cash back transactions.

If you don’t have enough cash in your spending account when a transaction is completed, round-ups won’t be credited.

You can find Backup coverage transfer history in the following:

• Your monthly account statements
• Account → History → Backup coverage transfer

• Link a bank account: The money shows as pending on Cash until it clears in 4-5 business days. We’ll notify you when the money is available to spend.
• Set up direct deposit: You can have your paycheck or government deposits (like tax refunds) deposited directly into your spending account.
• Use your ACH account and routing numbers: The ACH account number is your spending account number with a prefix. The routing number identifies the financial institution. You can find your ACH account and routing numbers in your app in Account (person) → Menu (3 bars) or Settings (gear) → Transfer.

For more information, check out Transfers.