Ease of Use
- Transfer money instantly to anyone via an email address, phone number or in-app $Cashtag.
- Users have the option to customize the design of their physical Cash Card² (fees may apply).
- Users can get instant access to any direct deposit funds, up to $50,000 in a 24-hour time frame.
- Cash App customers can invest in stocks and purchase Bitcoin directly from the app.
- Cash Cards are subject to daily, weekly and monthly transaction limits, though these limits are quite high.
- Only Cash Card accounts are FDIC-insured³; Bitcoin and investment funds are uninsured.
- Cash Card ATM transactions incur a $2.50 fee for each transaction in addition to fees imposed by out-of-network ATM operators.
- Cash App to Cash App payments cannot be canceled.
Cash App Overview
Cash App, developed by Square Inc., is a mobile-based peer-to-peer payment system that offers a range of financial services. With its user-friendly interface and convenient features, Cash App has gained significant popularity and a large user base since its launch.
Cash App provides users with various features and services, including money transfer, banking, a Cash Card debit card, investing and even Bitcoin integration. The app’s multi-functionality has contributed to its rising popularity among those seeking a convenient and streamlined mobile payment solution.
Keep reading for a look into the various aspects of Cash App, including an evaluation of its trustworthiness, its downsides and limitations, the information you should know about its refund policy and a look at the pros and cons of using Cash App as a financial tool to help you determine if Cash App is the right fit for your financial needs.
Cash App Features
Based on its features and benefits–and taking into account its limitations and downsides–Cash App received an impressive GOBankingRates rating of 4.8 out of 5. Here’s a closer look at the factors involved in the app’s rating.
Cash App Cash Cards can be used at any ATM, however, each transaction is subject to a fee of $2.50 in addition to any out-of-network fees charged by the ATM operator.
Customers who regularly receive a minimum of $300 via direct deposit into their Cash App account each month will have in-network ATM fees waived and will be given one free out-of-network ATM transaction each month. Once you’ve unlocked free ATM withdrawals, each additional qualifying deposit extends the time period for fee ATM transactions by a further 31 days.
Opening a Cash App Investing account is completely free, with no requirement for a minimum balance and no commission fees. While Cash App Investing doesn’t charge fees for trades, you’ll still be subjected to regulatory and government fees imposed by exchanges or entities such as the Securities and Exchange Commission. All fees are disclosed prior to trade confirmations and are clearly listed in the trade confirmation message.
Is Cash App legitimate? Generally speaking, Cash App can be considered a reliable and trustworthy company. It operates a legitimate payment processing business and has established a secure transaction system. While security breach incidents have occurred in the past, Cash App has taken steps to correct any security vulnerabilities and has generally maintained a solid track record. If you follow best practices to keep your account secure, avoid scams and safeguard your personal information, you can confidently use Cash App without worry.
According to Cash App’s most recent second-quarter 2023 shareholder letter, Cash App’s developer, Block, Inc., made $1.87 billion in gross profit, an increase of 27% since the same quarter in the previous year. Cash App itself generated a gross profit of $368 million. Over half of all Cash App accounts had an active network of four or more accounts, with peer-to-peer transactions of over $53 billion, representing the highest all-time quarterly use in the company’s history.
Ease of Use
It’s easy to send and receive payments in Cash App. To send a payment:
- Open Cash App.
- Enter the amount to send.
- Tap “Pay.”
- Enter the recipient’s $Cashtag, phone number or email address.
- Enter what the payment is for.
- Tap “Pay.”
- Confirm your transaction by confirming your Cash PIN or using the Touch ID option.
Cash App customers can see their received payments in their activity feed. To review a received payment:
- On the home screen, tap the Activity tab.
- Select the payment to review.
- Decide whether to transfer the payment to a bank account or to the account holder’s Cash App account balance.
Cash App employs state-of-the-art encryption and advanced fraud detection technology to safeguard your personal information and funds. Regardless of whether you’re using a public or private Wi-Fi connection or mobile data service, any data you provide is securely encrypted. Because Cash App shares the same parent company as Square, it uses the same robust fraud detection infrastructure and safety protocols that successfully monitor millions of Square point-of-sale transactions daily.
Cash App also complies with the highest level of security standards, known as the PCI Data Security Standard, or PCI-DSS, Level 1, which further demonstrates their commitment to keeping your data–and your funds–secure.
Customers can take some simple precautions to keep the money in their Cash App account safe. To have a more secure Cash App experience, users should:
- Completely sign out of their Cash App account if they sign in on a device that’s different from their own.
- Create a passcode for their mobile device and enable multi-factor authentication for their email account.
- Enable the Security Lock setting, requiring a PIN or Touch ID to make payments from their Cash App account.
How Cash App Stands Out
In addition to offering peer-to-peer payment service, you can use Cash App to pay for brick-and-mortar purchases at select merchants, buy and sell stocks, and even trade Bitcoin, all straight from the app. It essentially gives you a full suite of money management tools all in the palm of your hand.
Comparable Cash App Options
Mobile payment apps that let users transfer money directly, buy cryptocurrency and even provide investment options have become increasingly popular, with no shortage of choices. Here’s a look at the speeds, fees and features of four of the most popular: CashApp, Venmo, PayPal and Zelle.
|Transaction speeds||1-3 business days with no charge, instant transfers available for a fee ranging from 0.5-1.75% fee|
|Fees||Instant transfers are charged a 1.5% fee, ATM withdrawals are subject to a fee of $2.50, and all Bitcoin transactions may be charged a variable fee, which will appear prior to transaction confirmation|
|Payment methods||-Cash App balance
-Linked bank account
-Credit or debit card
|Notable features||-Income tax filing
|Transaction speeds||1-3 business days with no charge, instant transfers available for a fee of 1.75%6]|
|Fees||Instant transfers are charged a 1.75% fee, funds sent via credit card are subject to a 3% fee, ATM withdrawals are subject to a $2.50 fee if outside of the network, and cryptocurrency transactions are charged a fee based on market conditions disclosed at the time of transaction|
|Payment methods||-Venmo balance
-Linked bank account
-Credit or debit card
-American Express account
|Notable features||-Purchasing with Venmo credit card
|Transaction speeds||1-3 business days with no charge, instant transfers available for a fee of 1.75% fee|
|Fees||-$0 to send from your PayPal balance or your bank account
-Using a debit or credit card: 2.90%, plus a fixed fee
-From Amex Send™ Account: $0
-Buying or selling crypto: $0.49-$2.49, depending on the purchase amount; or between 1.80-1.50%, for purchases or sales above $200.01
|Payment methods||-PayPal balance
-Linked bank account
-Credit or debit card
|Notable features||-Wide range of services
-$10 referral bonus
|Transaction speeds||Instantly for existing accounts, new accounts may see a slight delay|
|Fees||Banks or credit unions may charge fees|
|Payment methods||-Linked bank account
-Credit or debit card
|Notable features||-No additional security details required
How To Apply
Signing up for a Cash App account is quick and easy.
Create an Account
- Download the free app from Google Play or the Apple App Store or scan the QR code from the website.
- Enter your name, ZIP code, email address and phone number.
- Choose your $Cashtag to send and receive payments. $Cashtags must include at least one letter and can be no longer than 20 characters.
- Link your bank account to open a Cash App account and access most of the app’s features.
A Cash App Cash Card is a Visa debit card that customers use to pay for products and services in stores and online with money in their Cash App account. Users simply add the Cash Card to an Apple Pay or Google Pay account to begin making purchases.
To apply for a Cash Card, users will need to verify their account using their full name, date of birth, mailing address and the last four digits of their Social Security number. Additional information may be requested to verify an account.
Who Cash App Is Best For
Cash App is a great option if you want to easily send and receive money, shop, trade stocks or Bitcoin, handle your taxes or even provide your teenager their own finances, all from one easy-to-use, intuitive app.
Cash App is a proven, reliable choice for anyone looking to send and receive money, make convenient bank transfers, purchase Bitcoin and even pursue investment options, all through a single account with one linked Cash Card debit card. Cash App is backed by the same technology that handles all Square transactions, underscoring the app’s safety and security.
Users can send or receive up to $7,000 per day with a limit of $15,000 per month. If you’re looking for a payment app that offers additional features such as tax filing, investing options and the ability to customize a Cash Card debit card, Cash App may be just what you’re looking for.
Important Tax Requirements To Be Aware Of
The American Rescue Plan Act of 2021 changed the minimum reporting threshold for certain transactions. Initially, the IRS had intended to require the customers of services like Cash App’s Cash for Business to report payments for goods and services on Form 1099-K if the total transactions reached $600 or more in a year, starting from January 2022.
However, on Dec. 23, 2022, the IRS announced a one-year postponement for the new $600 reporting threshold for Form 1099-K. Instead, if you have a Cash App Cash for Business account, received more than $20,000 and participated in over 200 business transactions within the previous calendar year, you’ll receive a Form 1099-K from Cash App, which must be reported to the IRS. Be aware that individual states may have lower thresholds for reporting.
These reporting requirements don’t apply to personal Cash App accounts, as such transactions are considered personal and non-commercial in nature.
If you’ve sold bitcoin on Cash App, though, you may have tax obligations related to those transactions. Cash App will provide you with an IRS Form 1099-B for Bitcoin sales with details based on the information you provided through IRS Form W-9 in the app. Bitcoin taxation issues are complex, and you’re responsible for determining if your Bitcoin sales are taxable — Cash App doesn’t report the cost basis of your Bitcoin sales to the IRS.
FAQWith so many payment apps available, it can be difficult to choose the best one. Here are the answers to a few commonly asked questions about Cash App to help you decide.
- Can Cash App be trusted?
- Cash App ensures the security of its platform by employing encryption and fraud-detection technology. This means that even if you're accessing the app on a public Wi-Fi network, all the information you provide is encrypted and securely transmitted to Cash App's servers. Additionally, the app incorporates extra safety measures such as PIN entry, Face ID and Touch ID for added security.
- What are the downsides of using Cash App?
- Because Cash App isn't a bank, FDIC insurance doesn't apply to funds held in regular user accounts, meaning the balance in these accounts is uninsured. However, FDIC insurance does apply to sponsored accounts, such as those held by minors, and all funds held in Cash Card accounts.
- Though transaction limits may be sufficient for most users, Cash Card limits of $7,000 per day and $15,000 per month may be an inconvenience for some. Any ATM transactions will incur a $2 fee. However, customers who receive $300 or more in direct deposits within a calendar month will have these fees waived and are also entitled to one free out-of-network withdrawal per month. To continue enjoying free withdrawals, you need to receive an additional $300 or more in direct deposits each month.
- Cash App payments made between two Cash App accounts are instant and typically can't be canceled. You can verify the status of a payment by reviewing your activity feed to see if there's an option to cancel the transaction.
- Can Cash App take your money?
- Cash App ensures the security of your funds and will not take your money without legitimate reason. While Cash App does have fees for certain services, these fees are clearly outlined within the app to provide transparency to users.
- It's crucial for users to exercise caution and be wary of scams and phishing attempts from external sources, as Cash App can't be held responsible for unauthorized transactions initiated by scammers or phishing attackers -- and, in most cases, won't be able to refund any money lost to scams. It's important to always verify the legitimacy of any requests for personal or financial information to protect your account and funds.
- Will Cash App refund my money if I get scammed?
- Because every transaction between a Cash App account happens instantly, a payment can't be canceled or refunded once it has been completed. If you mistakenly send money to the wrong account or believe you've been scammed, your best course of action is to contact the recipient and request a refund.
- Though Cash App may be unable to refund funds lost to scams, you should still report any transaction you suspect to be fraudulent. To do so, tap on the Activity tab on the Cash App home screen, locate and select the payment in question, tap on Completed and then on Report an Issue. To stay safe when using Cash App, always remember to only send money to people you're familiar with, always take the time to verify the recipient's information before initiating a transfer, and double-check the accuracy of the $Cashtag to which you're sending funds.
1Cash App is a financial platform, not a bank. Banking services provided by Cash App’s bank partner(s).
2Prepaid debit cards issued by Sutton Bank.
3Balance is FDIC-insured through Wells Fargo Bank, N.A., Member FDIC for up to $250,000 per person.
Editorial Note: This content is not provided by Cash App. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Cash App.
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