Cash App Review: Is It Legitimate?

GOBankingRates Score

Quick Take: Cash App is a quick and convenient way to send and receive money, make purchases, bank and even invest, all from a user’s smartphone. For individuals looking for a peer-to-peer mobile payment service to add to their financial profile, Cash App may be a great fit.
  • Fees
  • Reputation
  • Ease of Use
  • Security
How did we calculate this?


  • Users can instantly send money to just about anyone
  • Comes with the option to design a personal debit card
  • Quicker access to direct deposit funds
  • Option to invest in stocks and Bitcoin


  • Transaction limits on Cash Card use
  • Cash App balance is not FDIC-insured without a Cash Card
  • ATM withdrawals come with a $2 fee
  • Users can’t cancel Cash App to Cash App payments

    Cash App Overview

    Cash App is one of many peer-to-peer payment services available, but it stands out for several reasons. It provides users with a unique identifier called a $Cashtag, which automatically creates a shareable URL for making private and secure payments, offers a customizable debit card and even provides the option of filing taxes and investing through the app.

    Cash App Features 

    Cash App earned a GOBankingRates score of 4.8 out of 5. Here’s how the app was rated.


    Cash App Cash Cards can be used at any ATM for a $2 fee. However, customers who have at least $300 of their paycheck deposited into their Cash App account each month will be instantly reimbursed for ATM fees. Once free ATM withdrawals have successfully been activated, each subsequent qualifying deposit adds another 31 days of ATM fee reimbursements. 

    It’s free to open a Cash App Investing account. No minimum balance is required, and there are no commission fees. Although Cash App Investing charges no fees for trades, users may be assessed regulatory and government fees by agencies such as the Securities and Exchange Commission. All fees are disclosed before trades are confirmed, and the fees are listed in the trade confirmation message.


    Is Cash App legitimate? According to the company’s shareholder letter in the fourth quarter of 2021, Cash App generated $518 million in gross profit and was up 37% year over year. The Cash Card scaled significantly, with more than 13 million active Cash Cards in December 2021. Overall in 2021, Cash App generated $2.07 billion in gross profit, up 69% year over year.

    Cash App is a legitimate company, but it’s always wise to be wary of potential scams by its users.

    Ease of Use

    It’s easy to send and receive payments in Cash App. To send a payment:

    1. Open Cash App.
    2. Enter the amount to send.
    3. Tap “Pay.”
    4. Enter the recipient’s $Cashtag, phone number or email address.
    5. Enter what the payment is for.
    6. Tap “Pay.”
    7. 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:

    1. On the home screen, tap the Activity tab.
    2. Select the payment to review.
    3. Decide whether to transfer the payment to a bank account or to the account holder’s Cash App account balance.


    Is Cash App safe? Cash App uses state-of-the-art encryption and fraud detection technology to secure customers’ money and data. All submitted account information is encrypted and securely sent to Cash App servers through private and public Wi-Fi connections.

    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 To Apply

    Signing up for a Cash App account is quick and easy.

    Create an Account

    1. Download the free app from Google Play or the Apple App Store or scan the QR code from the website.
    2. Enter your name, ZIP code, email address and phone number.
    3. Choose your $Cashtag to send and receive payments. $Cashtags must include at least one letter and can be no longer than 20 characters.
    4. 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. 

    Comparable Products and Services

    CashApp, Venmo, PayPal and Zelle are similar peer-to-peer mobile payment apps used to transfer money to recipients. Here’s how their features compare:

    Cash App Venmo PayPal Zelle
    Transfer speed – Instant: 1.5% fee
    – 1 to 3 business days: no fee
    – Instant: 1.5% fee
    – 1 to 3 business days: no fee
    – Instant: 1% fee
    – 1 to 3 business days: no fee
    – Existing account: within minutes
    – New account: A few minutes longer
    Fees – Instant transfers: 1.5%
    – Send with credit card: 3%
    – ATM withdrawal: $2
    – Bitcoin purchases: 2% to 3%
    – Instant transfers: 1.5%
    – Send with credit card: 3%
    – ATM in-network withdrawal: $2-$2.50
    – Cryptocurrency transfers: 1.5% to 2.3%
    – Businesses: 2.9% and $0.30 per transfer
    – International transfers: 4.4% plus fixed-rate currency exchange
    – Bank or credit union may charge fees
    Payment methods – Cash App balance
    – Linked bank account
    – Credit or debit card
    – Venmo balance
    – Linked bank account
    – Credit or debit card
    – American Express account
    – PayPal balance
    – Linked bank account
    – Credit or debit card
    – Linked bank account
    – Credit or debit card
    Notable features – Income tax filing
    – Bitcoin purchases
    – Stock investing
    – Purchasing with Venmo credit card
    – Buying cryptocurrency
    – Wide range of services
    – $10 referral bonus
    – No additional security details required
    – Instant payments

    Good To Know

    Beginning Jan. 1, 2022, businesses receiving more than $600 annually in commercial transactions through Cash App are required to report the transactions to the Internal Revenue Service. This tax-code change was signed into law as part of the American Rescue Plan Act, which passed in March 2021.

    Final Take

    Overall, Cash App is good for sending and receiving money, making transfers and investing, all with one debit card. With Square Inc. at the helm, Cash App is a solid payment app that allows users to send up to $1,000 in payments within 30 days. Users who want a payment app that provides some extras — like tax filing, investing and a customizable debit card — may find that Cash App works best for them.


    With 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 is a legitimate app. It was developed by Block, Inc. and is widely used. It also has excellent reviews on both Google Play and the Apple App Store.
    • What are the disadvantages of Cash App?
      • Because it is not a bank, Cash App is not backed by the FDIC, meaning the balance on your account is not insured. However, accounts with a Cash Card are FDIC-insured.
      • Some users may find the transaction limits on the Cash Card restrictive, and it does charge a $2 fee for using ATMs, though the fee is waivable.
      • Transactions from one Cash App account to another are not able to be cancelled due to the speed of the transfer.
    • Can Cash App take your money?
      • Cash App will not take your money. There are fees for certain services, which are outlined in the app. Users should be wary of scams and phishing attempts by others, however.

    Amber Barkley contributed to the reporting for this article.

    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.

    Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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    About the Author

    Kathy Evans is a personal finance freelance writer and entrepreneur with a technical writing and instructional systems design background. She holds an MS in technical writing and informational design and is currently a doctoral student in instructional technology at Towson University. Through work experience in the federal government as well as commercial and nonprofit industries, she has focused her freelance writing on finance, investing and economic content with a specialization in budget coaching.  
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