Cash App is a peer-to-peer money transfer service that allows you to send and receive money, spend with a Visa debit card from your account, invest in stocks, as well as buy and sell bitcoin. Moreover, you do not need a bank account to use Cash App.

 

Cash App is ideal for beginning investors, cost-conscious investors, bitcoin users and mobile banking users. Cash App’s services are available in the US and the United Kingdom. Using the Cash App requires you open a Cash App account and must be at least 18 years old.

Cash App was created by Square, Inc. in 2013 and has its headquarters in San Francisco, California. It is supported on Android and iOS operating systems. Cash App is available in English and French. By 21st March, 2021, Cash App had recorded 36 million active users.

How Cash App Works

The four main functionalities of Cash App are mobile banking, sending money, investing, and receiving money. This is how Cash App works:

Sending Money

When sending money, you will need the recipients phone number, email address, or $Cashtag (username). After filling these details, you will choose where you want to withdraw money from to make the payment. It can be from your connected bank account, Cash App balance, or linked card (credit or debit card; Cash App supports MasterCard, Visa, Discover, and American Express).

 

Receiving Money

Money received usually goes into your Cash App account first then, you can withdraw to a connected bank account or debit card. Alternatively, you can request a Cash Card to use your Cash App funds to purchase items in stores or online. Standard deposits show up in your bank account within 1-3 business days and are usually free. On the other hand, instant deposits happen instantly but you will need to pay a 1.5% rush fee.

Cash App Investing

The Cash App Investing functionality lets you invest in stocks with as little as $1. However, to buy stocks, you will need to sign up with Cash App’s broker-dealer, Cash App Investing LLC. Cash App is also the fastest way to buy and sell bitcoin at a fee. To use this feature, you must be 18 years old and be a U.S resident.

Cash App Banking

If you want to use the Cash App Banking feature, you will need to order a Cash App card to unlock it. You can use this feature to receive your paycheck, tax returns, and other direct deposits.

Cash App Business Account

Cash App business accounts allows businesses such as online merchants to receive money from customers. With this account, merchants are able to create a payment link and share it with their customers on their websites. Customers can make payments without downloading Cash App or creating an account.

Cash App Loan

The platform introduced a new Cash App loan feature to select 1000 users at the end of 2020. Cash App loans start at $20 to $200. The loan is for one month with a flat fee of 5%. Cash App loan will be expanded to more users in the future.

GCash App: Note that GCash App is different from the Cash App we have reviewed in this article.

Cash App ATM

You can use Cash App Visa card (Cash Card) to make ATM withdrawals with your at any ATM. Cash Cards work at any ATM. You will be charged a $2 fee. Cash App reimburses ATM fees and ATM operator fees for customers who receive $300 or more via Cash App direct deposit each month.

Cash App Crypto

Cash App comes with a bitcoin wallet address that enable users to buy, sell, send or receive bitcoins on Cash App. Here’s how to buy bitcoins from Cash App.

Cash App Crypto Fees

Cash App charges fees when you buy or sell bitcoin. You will know the fees before you complete a transaction. There are two kinds of Cash App crypto fees for bitcoin transactions: a service fee for each transaction and an additional fee determined by price volatility across U.S. exchanges. Bitcoin purchases and sales made through Cash App are carried out at a mid-market rate that is determined by exchange prices.

How to Create a Cash App Account

First, download Cash App from the Apple App Store or Google App Store then, register with your phone number. A code will be sent to your number for instant verification. You will then need to choose your $Cashtag (username) by adding your email address and photo. You will get a custom link which people you know can use to send you money. Lastly, you will need to link your bank account or Cash Card to send and receive funds on Cash App.

Cash App Limit

With Cash App, you can send up to $1,000 in a month.  ATM withdrawals are limited to $250 per withdrawal. However, it is possible to increase your limit by verifying your account. When verifying your account, you will need to provide personal details such as your name, the last four digits of your Social Security Number, and date of birth. Cash App’s spending limitations makes it unfriendly for businesses.

Cash App Supported Countries

Cash App has a location limitation. It is mainly for U.S to U.S transactions but you can also send money to people in the United Kingdom. It supports USD and GBP currencies. Cash App is not yet available in Canada and Australia but plans to include these regions are underway.

What is Cash App bank name? Cash App users need to know Cash App bank name for several reasons. For example, if they need bank details for direct deposit. Cash App bank name is Lincoln Savings Bank. It is the official bank of Cash App.

Cash App Fees

Cash App does not charge any fee when you send money from your Cash App balance or bank account. However, you will pay a 3% transaction fee if you send money from a credit/debit card. Additionally, there is a $2 fee if you use the Cash Card at an ATM. A standard transfer deposit into your account is free while an instant transfer has a 1.5% fee. No commission is charged if you buy stocks on Cash App provided the government agency you are buying from does not charge any fee.

Cash App free money: Does Cash App offer free money? No, Cash App does not offer free money. If someone is promising you Cash App free money in return for sending them a payment, don’t. It is a popular scam. Many people have lost money in this way.

Cash App Customer Support

If there are any errors or questions concerning your Cash App account, you can contact the Cash App support team at 1-800-969-1940. Alternatively, you can write to them at Square, Inc., 1455 Market Street, Suite 600, MSC 211 San Francisco, CA 94103.

Cash App Customer Reviews

Cash App has mixed customer reviews. A small number of customers say that Cash App is a streamlined and easy-to-use app for payments and investments while most customers criticize the app. They complain about blocked accounts and cancelled payments. Customers also complain about Cash App’s unreliable customer service where complaints are not addressed or it takes too long to address the complaint. It is rated 1.2/5 star on Trustpilot with 2500 reviews.

Is Cash App Safe?

Yes. Cash App is safe to use as long as you follow instructions, keep people out of your account (by creating a password) and hold little money in your balance. Security locks including PIN entry, face ID, and touch ID verification protects Cash App payments. Additionally, all payments sent and received are encrypted. It is also best to be careful when sending money because you probably won’t be able to cancel payments made to another person’s Cash App account. It is advisable to check and re-check the $Cashtag, email address, and phone number before you send money.

Although Cash App is safe, there have been cases of fraud. It is therefore advisable to be careful and follow Cash App’s best practices to remain safe.

Cash App scams: If someone claiming to be a Cash App service representative asks for your sign-in code or PIN, asks for you to send them money, or asks for personal information, it’s a fraudster. No Cash App service representative will ever ask for your sign-in code over the phone, on social media, or through any other channel. Never give anyone your sign-in code. This unique code helps keep your account safe and secure from scammers and fraudsters.

Cash App Alternatives

Depending on your needs, Cash App might not be the best money transfer service for you. You can choose to use the following alternatives:

  • Venmo: With Venmo, you can also rush payments with a 1% fee and it also operates on weekends and holidays.

  • Wise, formerly Transferwise: You can use Wise to send money from the U.S to more than 50 countries across the globe.

  • Zelle: Zelle is integrated with banking apps and can also be used in isolation. Its instant transfers are bank to bank only and all payments are free. However, it does not support international transfers.

  • PayPal: PayPal supports transfers from 200 countries to 75 countries globally in 25 currencies.

Cash App referral code: Cash App regularly offers referral code for its users to invite others and earn free money as an incentive.

Final Thoughts on Cash App

Cash App is highly convenient since you can send and receive money using your smartphone. Security locks ensure that your funds are always safe. However, it is best to use Cash App cautiously to prevent loss of funds through scams.

More Information

 

Daisy Neema is a graduate of Chuka University. She is a prolific writer and researcher and has an interest in finance. She also loves writing about businesses and startups.