We have Square, Inc. to thank for the reliable peer-to-peer payment service called Cash App. With this app, you can send and receive money by following a few simple steps. Aside from its main feature, you can also do banking and investing within the app, which is very convenient for us folks on the go.
To get the most use out of this app, you can order its dedicated cash card to use on your everyday purchases. Let me give you a quick rundown of what you can do with this impressive application:
- The app makes it easy for everyone to send and receive funds with a limit of $1,000 within a 30-day period. This service is only available in the US and UK for now.
- You can use it as a payment method by linking all your existing cards and bank accounts.
- It has very reasonable service fees compared to other more popular payment platforms like Venmo and PayPal.
- You can invest and work with bitcoin within the app.
There are currently 9.4 million users who enjoy this new app’s capabilities, making it one of the most reliable payment options in 2021. If you’re someone who needs to send and receive money regularly, I can say right off the bat that Cash App could be your new best friend.
Best of all, downloading is free on iOS, Android, and any web browser. Whether you’re a freelancer, employer, or just someone who needs to make transactions often, Cash App makes money transfers a breeze.
How To Use Cash App To Send Money
- Download the app and register. You will have to verify your account to start enjoying its features.
- Open the Cash App on your device.
- Indicate how much money you’re going to send and click “PAY.”
- Put in the phone number and email address of the person you’re sending money to.
- Put in the reason why you’re sending this money.
- Click “PAY,” and the recipient should get in no time.
Important Information To Know Before Using Cash App
- Within 30 days, you have a sending limit of $1,000. If you’d like to increase this amount, you have to give out your name and birth date. You also have to put your Social Security Number in the last four digits for the app’s security. After you provide this information, you will get the privilege of increasing your sending limit promptly.
- If you want to use the app for credit card payments, please note that there is a 3% fee. This applies when you want to send money through a linked credit card. 3% is pretty reasonable compared to other apps.
- You can avoid paying this 3% fee if you use linked bank accounts instead of credit cards.
- The cash card you can order alongside the app has a $1,000 per day or per week limit.
- If you want to use your cash card to withdraw funds from the app, there is a $250 limit per transaction per day, $ 1,000 per week, and $1,250 per month.
- FDIC-insured Sutton Bank issues the cash card, but FDIC insures the funds. Keep in mind that even though this app functions much like a bank, it’s different from an actual bank app. Why? The funds flowing through this app are never held or transferred through Sutton Bank.
Related Reading: How do I Add Money to my Cash App Card?
Why Should I Use Cash App?
Unlike a bank, Cash App doesn’t charge you for almost everything. I’m happy to say that Cash App has no monthly fees, and it’s free to send and receive money. You also don’t have to worry about having an inactive account or incurring any foreign transaction fees. It’s a pretty sweet deal.
I also like that it has its dedicated cash card, which I can use to buy stuff from an online or physical store. You can also use it at an ATM if you want to take out some cash from your account. It can’t be linked to any of your other bank accounts, so it’s its own separate thing.
Cash App and ATM Fees?
If you’re worried about ATM withdrawal fees, you don’t have to pay it as long as you set up a direct deposit. If you don’t do that, you get the usual $2 charge, which isn’t bad.
Another benefit of using the Cash App is its many “boosts.” It can help you save money when purchasing from certain vendors and services. It really helps because a 10% or 15% off here and there adds up to actual savings.
Unfortunately, you can only have one boost running at a time, but you can switch up the boosts as often as you’d like. You can adjust it according to what you’re spending money on.
Cash App Promo Offer
As a promotional offer, if you recommend the Cash App to your friends and they sign up, you all get a cash bonus! This is handy when you’re setting up a payment agreement with contractors too. If they use your referral code, everybody benefits. You get $5, and they get $10. The more people you refer, the more cash you get.
I also want to recommend Cash App for its investment options. This app is a great way to do it for those who want to start dipping their toes into the stock-buying waters. It’s your choice how little or how much money you can invest.
Investment stocks can be bought with the money that you have in your account. If by any chance, you don’t have enough there, the funds will be pulled from your linked bank accounts.
If you also want to jump on the bitcoin trend, Cash App lets you do just that for a fee. You can buy and send bitcoin if you feel like investing or liquidating. The fees applied here are based on market activity, so you may want to keep track of that before making any transactions.
Related Reading: How to Get the Cash App as a Teenager
Practical Things To Know About Cash App
How does account verification work?
Easy. You don’t have to dig up any documents for the information the app will ask of you. It’s pretty basic stuff. After you fill out your registration, you’ll get a code sent to you through mail or SMS. Once you confirm that it’s you, you can then choose whether you want a personal or business account.
Of course, if you want to use funds from your bank accounts, you will have to give out that information as well.
How many ways can I transfer money through Cash App?
As of now, there are four methods. You can…
- use the app itself.
- go on their website.
- ask Siri to make the transfer for you.
- use the iMessage integration if you’re an iOS user.
Related Reading: Can you Transfer from Venmo to Cash App?
Do I get notified when I make transactions or when transactions go through?
Of course. All of us want to know if our recipient has gotten our money or if we’ve successfully paid for something. The recipient will also get a notification in an email or a text.
How do I withdraw and deposit from my Cash App account?
You can put money into your account by transferring it from a linked bank account and vice versa. You can take it out by using your cash card like a regular debit card on an ATM.
Please note depositing money comes in two speeds, instant, and standard. If you choose the standard time, it may take up to three days before the funds are reflected in your account. Transfers also take weekends and national holidays into account.
If you choose the instant option, the money is reflected right away, but you’re also going to be charged 1.5% of the amount as a fee.
Banking And Investing With Cash App
Aside from sending and receiving money, there are other financial options to explore with Cash App. You can set it up, so you receive paychecks and tax refund checks in your Cash App account.
Naturally, you have to avail the cash card to take full advantage of the app’s banking feature. Direct deposits to your account take much faster than deposits to the bank, so you can get your paychecks sooner than you usually would.
Yes, using the app doesn’t come with federal insurance, but FDIC guarantees up to $250,000 of your money should something go wrong with the app in the future. The folks over at Square, Inc. are working hard to ensure this. As of now that the app doesn’t have federal backing, so use it at your discretion. For safety reasons, it’s advisable to use this app for smaller transactions.
One of the more exciting things about this app is that it allows you to invest. With as little as $1, you gain access to exchange-traded funds with no commission fees. Please note that this feature is only available to users who reside in the US and are over 18 years of age.
To begin investing, they will need more personal information from you, which is pretty standard because banks require mutual funds.
The Limitations Of Cash App
It’s not a perfect application. You have a $2,500 spending limit per week, given that your account is fully verified. If not, the limit is much lower at $250. The good news is there is no limit when it comes to the amount of money you can receive if you have a verified account.
If not, that limit is at $1,000 within a 30-day period. So this is not a bad option if you’re looking to get paid as a contractor. I should also note that business accounts can’t only receive funds and not send them.
The app is only available in the UK and the US. I should also say that it’s not available in US territories, which is too bad. I hope they work on that. You also can’t use the app if you travel or live abroad.
If you do have to travel, there is the option to download its overseas version. You can use it in Canada, Australia, and Japan.
Lastly, Cash App is only compatible with the latest version of iOS and Android. If you have an older device that you can’t update anymore, you can’t really use this app.
The Issue Of Safety
Many people are wary of money-transferring and banking apps because they have to hold your personal information. They think there’s a risk of identity and information theft. However, Square, Inc. assures that they have the standard safety standards in place. There is also a solid fraud detection infrastructure, which is nice to know if you’re planning to set up a business account.
What all this mumbo-jumbo means is that all the information they get from their users is encrypted and safeguarded in their servers. You must know that there is always a risk when giving out information to any app or site.
What you can do is enable the security lock feature that Square has put in place. Should anyone get a hold of your phone, they can’t access your account because of the passcode. You also have to use this passcode before every transaction that you make.
There are also the Face and Touch ID features that you can use if your phone is capable. If not, you can always rely on the good old 2-factor authentication to set up with your email. Like I said before, you’re always notified when a transaction is made on your account, so you should be able to keep track of the funds going in and out.
Cash App Compared To Its Competitors
We all know that there are so many payment networks out there, some more popular than others. What is it about Cash App that makes it stand out from the rest? Let’s examine it here.
First, let’s take Venmo, arguably the biggest one out there. Honestly, there isn’t much of a difference between these two, so I’d make the case that Cash App is a great contender. They apply pretty much the exact fees and work on similar speeds.
Next, there’s Zelle. With Cash App, you can pull funds from your regular bank account and even your credit card into your app account. Zelle focuses more on person-to-person money-sending, where the money can only be pulled from your account and transferred into the recipient’s. It’s intended for people who make transactions with those who they absolutely trust. They don’t have fraud protection when it comes to purchasing.
Next, there’s Google Play. Google Pay works better with the immediacy of transfers. With Cash App, transfers can take up to three days before the funds are reflected in the recipient’s account. That is if you choose the standard option of sending.
Related Reading: Comparing the top 3 cash transfer apps
Let’s Talk Fees
So as we’ve covered before, if you use a credit card to make payments through the app, you’ll be charged a % three fee. If you choose the instant deposit option, you have to pay 1.5% of the amount as a fee. Other than that, you can use the rest of the features for free.
If you own a business account and you have to make a payment, you’ll automatically be charged 2.57% of the amount. You don’t have to worry about that if you have a personal account.
Let’s look at PayPal’s fees. If you have a verified account with them, you’ll be charged $.0.25 if you make an instant transfer to a linked bank account. They also charge 2.9% and $0.30 per transaction if you purchase something with debit or credit cards. Venmo also charges 3%, just like Cash App, when using money from a linked credit card.
Is Cash App worth using over any other payment platform?
Yes! It’s a very safe app that’s easy to use. Just make sure to use the necessary precautions like setting up authentications and checking notifications just like you would with any other app.
How much money can I send through the Cash App?
After you set up your account, you can immediately send up to $1,000 within 30 days. If you want to increase this amount, just get yourself fully verified.
Does it cost money to send money through the Cash App?
No, as long as the funds that you’re sending come from your account or a linked bank account. However, if you make payments with a credit card, you’ll be charged a 3% fee.
How do I take money out of the Cash App?
It’s simple. Go on the app and click the “Cash Out” button. Then indicate the amount you want to withdraw and how soon you want it transferred to your bank account. A standard transfer will push through within three days. If you choose the instant transfer option, you’ll get the money right away but for a 1.5% fee. Similarly, you can get the Cash App cash card and use it at an ATM.
Does the Cash App require a bank account?
No. You can still use it even without linking it to a bank account. You can still send and receive money and make purchases at online and physical stores.
I would give Cash App a solid 4.9 stars out of 5.
It’s a reliable way to make payments, send money, receive money, make transfers, and invest. Their fees are standard, and you don’t have to pay anything to use its main features. If you need to pay people regularly or you feel unsafe making payments with your actual debit or credit card, this app is a legitimate option for you.