Cash App Review: The Best Way To Transfer Cash

January 9, 2023
Blog

Cash App offers free peer-to-peer payments through your mobile device. Besides that, you can get an optional visa debit card to make online purchases or withdraw from an ATM making spending your Cash App balance very easier.

Therefore, we believe Cash App is a great way to save money while sending money locally. After all, it is free to send and cash out money if you can wait 1-3 days to get your cash.

What Is Cash App?

Cash App is a peer-to-peer money transfer app (supported by iOS and Android) that has been around since October 2013. Cash App is available for American and United Kingdom users. It is a brainchild of Twitter CEO Jack Dorsey, who co-founded the parent company Block Inc. (formally Square Inc., with headquarters in San Francisco, California) with Jim McKelvey. It was formerly known as Square Cash but rebranded to Cash App in March 2015.

The Cash App is just one of Block Inc.'s many products designed to help customers with financial transactions. They also provide payroll systems, payment hardware, and other services to restaurants and small businesses.

Cash App allows users to customize debit cards based on individual needs and earn instant discounts on daily spending. The app provides free ATM withdrawals, and subscribers can receive their paychecks up to 2 days early.

On top of that, Cash App offers advanced security features that enable users to protect their data and payments through data encryption and verification locks.

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Features Of Cash App

Cash App features include:

  • Sending Money
  • Spending Money
  • Banking
  • Investing
  • Cash App Borrowing.

Here is how each one works.

Sending Money

Cash App allows you to send and receive cash to and from friends and family, retail stores, and other merchants who accept Cash App payments.

To send funds, all you need is the recipient's phone number, email address, or $Cashtag. The $Cashtag is a username each Cash App user sets into their app profile when signing up.

After you enter the person's information, Cash App will ask where you want to draw funds from to make the payment. You can draw funds from your Cash App balance, linked bank account, debit card, or credit card. The maximum amount you can send in a week is $250, but if you verify your Cash App account name, birth date, and Social Security Number (SSN), your limit will go up (up to $2,500 a week).

Cash App Review: The Best Way To Transfer Cash

Spending Money

When you receive money, it first goes into your Cash App balance, after which you can withdraw it to a linked bank account or debit card. A standard withdrawal into your bank account appears within 1–3 business days, while an instant deposit to your debit card appears immediately but incurs a rush fee ranging from 0.5% to 1.75%.

Besides that, Cash App lets you spend the money in your account by paying in retail stores and restaurants. You can apply for a Cash Card to spend cash straight from your Cash App account. It has no monthly fees, no inactivity fees, and no foreign transaction fees. However, if you use the Cash Card at an ATM, there is a $2–$2.50 fee.

A cash boost discount comes with the card when you use it at participating coffee shops, restaurants, and other merchants. When a Cash Boost becomes available, you can save it from the app and use it on your Cash Card.

The Cash App also helps you keep track of your Square Loyalty rewards from stores and restaurants. You don't have to use the Cash Card or download the Cash App to earn or redeem rewards at participating retailers. But the app simplifies tracking how many points and tips you've earned.

Banking

Aside from receiving payments from friends, you can use Cash App banking to deposit other funds, such as your paycheck as a direct deposit and tax refund checks.

You must first order a Cash App card to use the banking feature. Cash App creates a dedicated account and routing numbers to share with your employer to receive your salary directly in Cash App. Configuring direct deposits into your Cash App account can help you get your paycheck up to two days earlier than the direct deposit to another bank and get up to 3 free ATM withdrawals per month when your salary is at least $300.

However, not all Cash App accounts have Federal Deposit Insurance Corporation (FDIC) insurance. If a financial institution fails, the FDIC will guarantee up to $250,000 of your funds.

Investing

Cash App Investing allows you to invest in stocks and ETFs with as little as $1 and no commissions. The investing feature is only available to US residents at least 18 years old.

Cash App also accepts cryptocurrency. Within the app, you can buy and sell Bitcoin. You can also deposit and withdraw Bitcoin to an external wallet.

Cash App Review: The Best Way To Transfer Cash

Cash App Borrowing

“Cash App Borrow” is a brand-new feature that lets you take out loans from Cash App. Cash App will lend you up to $200, depending on your credit score and history.

You can borrow between $20 and $200, and you'll pay 5% of the loan balance immediately, followed by 1.25% per week after a four-week grace period.

Cash App Borrow has the lowest fees but the lowest amount of money you can borrow compared to other cash apps.

Pros And Cons Of Cash App

Cash App has a lot of benefits, but everything, no matter how good, has a negative side. Here are Cash App's pros and cons.

Pros

  • Cash App functions as a bank account. Cash App provides you with an account number and a routing number to make direct deposits easier, allowing your paycheck to be sent directly to Cash App. Similarly, you can use Cash App to make payments, such as utility payments.
  • You can purchase at retail stores using a Cash App debit card.
  • When you link Cash App to a debit card or bank account, there are no fees for making payments.
  • If you are an investor, a Cash App account gives you a quick and easy way to invest in stocks and cryptocurrency.
  • It is easy to sign up with Cash App because they have a simple-to-use interface that is easy to set up.
  • Cash App also offers free tax-filling tools.
  • Cash App is relatively safe because they protect customers' money and data using cutting-edge encryption and anti-fraud technology.

Cons

  • Cash App balances, unlike regular bank accounts, do not earn interest.
  • Lack of easily accessible customer service; for example, it is difficult to get prompt replies when you contact Cash App customer support through email in need of a quick resolution.
  • Cash App transactions are restricted; for example, you can withdraw up to $310 per transaction from an ATM and no more than $1,000 in seven days.
  • Cash App charges a 3% fee when you use Cash App or a credit card to purchase.
  • The Cash App debit card charges a 2% transaction fee each time you make an ATM withdrawal.
  • Although Cash App has some interesting banking features, it is not a bank. Not all accounts are FDIC-insured, meaning holding large sums is not a great option.

Cash App Pricing

With Cash App, there are no fees when you send cash using a debit card. However, if you use a credit card, there is a 3% fee.

Standard bank cashouts are also free, but instant debit card deposits cost 1% to 1.5%.

Cash App charges you $2 if you use Cash Card to withdraw funds from an ATM. ATM withdrawal, however, is free for 31 days after you deposit at least $300 into your account or enable direct deposit of your salary.

Cash deposits are subject to a $1 fee, and there is currently no way to avoid this.

Cash App accounts for investing are free to open, have no minimum balance requirements, and have no commissions. However, there may be regulatory and government fees, which Cash App will undoubtedly pass on to you. However, Cash App will display such fees before you make a trade.

If you wish to invest in cryptocurrency (e.g., bitcoin), the fees vary depending on the coin's volatility at the trade time. It is, however, usually between 1% and 1.76% of the purchase price. You will see the fee amount on the order page before confirming your order.

Cash App ServiceFee
Sending CashFree when you use a debit card; 3% fee when you use a credit card.
Withdrawal to BanksFree for standard deposits to your bank account (1-3 business days); 0.5-1.75% for instant debit card deposits.
Cash Card$2 for withdrawing from an ATM
InvestingFree to trade stock and ETFs (Cash App may forward government charges to you).
Cryptocurrency1% and 1.76% depending on the coin's volatility.

In Summary

Cash App is a reliable choice that allows you to do many things straightforwardly, particularly if you require core functions such as banking, spending, money transfer, and basic investing. You'll get everything in an easy-to-use format and be ready to go seconds after signing up. Investing and using a debit card with the service makes it an excellent tool in the digital age.

However, although Cash App FDIC-insures accounts, not all accounts qualify to be FDIC-insured, which means there's no guarantee you'll get your money back in case of a security breach or insolvency. For that reason, Cash App is not a good idea as a bank replacement. But it is an excellent tool for transferring small sums quickly and securely.

Cash App FAQs

Is Cash App safe?

Yes, Cash App is safe. Cash App uses state-of-the-art technology to encrypt data transmitted through its servers. Besides, their app has additional security measures that you can activate to make it more secure such as a PIN or touch ID.

However, even though the app is safe, you must be careful about how you use it to avoid scammers from tricking you into sending them money or requesting your credentials, pretending to be customer support.

Why is Cash App charging me to receive money?

Cash App does not charge recipients to receive money. However, when you withdraw the funds you receive through Cash App, there may be a fee depending on how fast you get the funds. The standard deposit method is free and takes between 1 to 3 business days to process. If you choose the instant deposit, you must pay an instant transfer fee of 0.5%-1.75% (minimum $0.25) to immediately receive the money on your debit card.

Can I use Cash App without my Social Security Number?

Yes. You can use Cash App without your Social Security Number (SSN). However, certain Cash App features require verification using your SSN, so if you need such features while using Cash App, you must verify your account.

Will Cash App refund money if I’m scammed?

Cash App may or may not refund your money if you get scammed. Most Cash App payments are instant. For that reason, Cash App may not be able to reverse a transaction. Although they claim to cancel potentially fraudulent payments to prevent you from being charged, they caution you not to send money to someone you don't know since they cannot guarantee a refund.

Is Cash App considered a checking account?

Yes. You can consider Cash App a checking account. Basically, a checking account is a deposit account held at a financial institution and makes it easy to deposit and withdraw funds. This could include depositing a check, withdrawing cash with a debit card, or setting up direct deposit for your paychecks. Cash App satisfies most checking account requirements, so yes, it can be considered a checking account.

What debit cards work with Cash App?

Cash App works with MasterCard, Discover, Visa, and American Express debit and credit cards. Even though Cash App also supports most prepaid cards, depositing to these cards is not possible. Cash App does not currently support PayPal, business debit cards, or ATM cards.

Is Cash App better than PayPal?

It is hard to tell whether Cash App is better than PayPal because they have unique features and benefits. However, PayPal offers a more comprehensive experience because it allows users to send payments globally, making it the better choice for many users.

On the other hand, Cash App may be more suitable for those seeking instant money transfers and investing within the US, but not internationally.

How can I reach out to Cash App customer support?

You can reach out to Cash App customer support through the chat option on the app. You can also call Cash App customer support number 1 (800) 969-1940, Monday through Friday, 9:00 am to 7:00 pm EST, or email by first logging into your Cash App account. Alternatively, you can contact them about any query through their social media handles Instagram, Twitter, or Facebook.

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