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As technology progresses in the fintech space, peer-to-peer (P2P) payment apps like Cash App have become the go-to payment option for many consumers.
Cash App allows individuals to quickly receive and send money to other people from their mobile devices. In addition to mobile banking, Cash App also offers the option to purchase stock and Bitcoin through its platform. The company has even made it possible to file your taxes through its Cash App Taxes feature.
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Keep reading for a deeper look into Cash App.
What Is Cash App?
Cash App is a P2P payment app that allows individuals to quickly send, receive and invest money. Block, Inc., formerly Square, Inc., launched the app in 2013 (initially named Square Cash) to compete with mobile payment apps like Venmo and PayPal.
Cash App is a financial platform, not a bank. It provides banking services and debit cards through its bank partners. The balance in your account is insured by the Federal Deposit Insurance Corporation (FDIC) through partner banks. Cash App provides investing services through Cash App Investing LLC, registered with the Securities and Exchange Commission (SEC) as a broker-dealer and a member of the Financial Industry Regulation Authority (FINRA).
Through Cash App, users can send and receive money, get a debit card and set up direct deposits. The investing feature allows users to invest in stocks for as little as $1. This is done by buying pieces of stock, called fractional shares. Consumers can also buy, sell or transfer Bitcoin through the app.
With Cash App Taxes (formerly Credit Karma Tax), users can file their taxes for no charge. With this service, Cash App is quickly becoming a one-stop shop for financial services.
How Does Cash App Work?
To use Cash App, you must first download the mobile app, available for iOS (4.7 stars out of 5) and Android (4.6 stars out of 5). You can also sign up for an account online. The app features several tabs for its various services, including banking, debit card, payments, investing and Bitcoin.
Send and Receive Money
After setting up an account, you’ll link an existing bank account to your Cash App account. Once a payment source is connected, you can send or receive money through the mobile app. Users can enter a dollar amount from the green payment tab and tap “Request” or “Pay” to create a payment.
Each Cash App user creates a unique username, called a $Cashtag. You can find individuals or businesses to pay or request money by searching for their $Cashtag. You can also search for individuals by name, phone number or email address. You can choose to send funds from your Cash App balance or your linked funding source.
The money is kept in your Cash App balance when you receive payments. You can keep it there or transfer it to your linked bank account. Cash App charges a fee for instant transfers (0.5% to 1.75% of the transfer amount, with a minimum fee of $0.25), but you can also choose a no-fee standard transfer, which typically takes one to three business days to complete.
To add money to your Cash App account, navigate to the app’s banking tab and press “Add Cash.” Select the decided amount and tap “Add.”
Who Can Use Cash App?
Cash App is for individuals ages 13 and older. Users ages 13 to 18 require approval from a parent or guardian to access expanded Cash App features like P2P transactions, direct deposit and a Cash Card.
Other features, such as investing and Bitcoin, are only available for Cash App users who are at least 18.
Does Cash App Offer a Debit Card?
Cash App users can receive a Cash Card, which is a debit card tied to their Cash App account. Like most debit cards, the Cash Card can be used to make purchases online and in person. You can also add your Cash Card to digital wallets like Apple Pay or Google Pay.
Users can also use Cash Cards at ATMs. Cash App charges a $2 fee per ATM transaction. In addition, the ATM owner may charge a separate fee for ATM use. For users who receive direct deposits of at least $300 each month, Cash App reimburses ATM fees, including third-party ATM fees, for up to three ATM withdrawals per 31-day period (up to $7 in fees per withdrawal).
Cash Card transactions are subject to the following withdrawal limits:
- $310 per transaction
- $1,000 per 24-hour period
- $1,000 per seven-day period
What Does It Cost To Use Cash App?
Cash App costs nothing to download and create an account. And it doesn’t charge fees for many of its services. Standard transfers from a Cash App balance to a linked bank account are fee-free, but a small fee is charged for instant transfers.
Users that request a Cash Card are subject to fees for ATM use. Cash App may also charge a fee when you’re buying or selling Bitcoin. The fee is listed before you complete the transaction.
How Long Does It Take To Send Money?
Cash App payments are instant and funds are available to use immediately in most instances. If your account shows payment pending, you may need to take action and follow the steps provided by the app to complete the transaction.
What Are the Dollar Limits on Cash App?
Cash App restrictions how much you can send or receive when you first open an account. Users can send up to $1,000 per 30-day period and receive up to $1,000 per 30-day period.
Cash App users can have their account verified to access higher limits. Sending limits vary depending on what you’re approved for by Cash App. Once verified, there is no limit to how much money you can receive through the mobile app.
Is Cash App Safe?
Cash App says it employs the latest encryption and fraud protection technology to protect its users. As a security measure, the app will send you a one-time-use login code when logging into your account. Cash App also offers optional settings to enable additional security measures. By enabling a security lock, for example, every Cash App payment requires your passcode. You can also disable your Cash Card within the app, which could come in handy if your card is lost or stolen.
Frequently Asked Questions (FAQs)
To use Cash App, download the mobile app and create an account. Then, link a funding source, like an existing bank account. Once your account is established, you can use Cash App to request, send or receive money from other people or businesses.
What makes Cash App special?
Cash App offers a simple, modern way to send and receive free money from your phone. The app also provides banking and investing services in one spot.
How is Cash App different from Venmo or PayPal?
Venmo operates similarly to Cash App, except its geared towards individuals only. Cash App is also available for businesses. Also, users can sign up for a credit card through Venmo, but Cash App and PayPal only offer debit cards. Plus, each mobile app has different transaction limits. PayPal is one of the oldest payment apps around and doesn’t charge for sending money to family and friends, but it charges fees if you receive money for goods or services.
How is Cash App different from Zelle?
Zelle is strictly a digital payment service, typically tied to your bank account, while Cash App also offers the ability to receive a free debit card.
Cash App has set transaction limits to start, but users can go through a verification process to access higher limits. Zelle transaction limits depend on whether your bank supports the service. If so, then the bank sets the limit. If not, Zelle has a $500 weekly send limit.
Can I only use Cash App with other Cash App users?
A Cash App account is required to send or receive money through the mobile app.
Can I get paid via Cash App?
Yes, Cash App allows you to request payments from other users. Received payments go to your Cash App account balance. You can keep your money in your Cash App account or transfer it to a linked bank account.