A banking app that allows you to pay, invest, and receive money easily. I am talking about Cash App, the safest way to manage your money. It is a go-to choice for beginners in investing and mobile banking lovers.
You can trade stocks, buy Bitcoin, and swift deposits. These features make this app a popular resource for investors. It is free to use, with some taxes for sending or receiving money with your credit card.
With a robust security mechanism, this app has a lot to offer for digital banking lovers. Let’s explore this convenient payment solution further. This Cash App Review covers all the necessary information, like what it is and how it works.
Take Away
- Cash App is the best platform to send & receive money, invest as little as $1, and deposit funds without visiting a physical bank. User can get instant deposits to their account at a marginal fee between 0.5% to 1.75%.
What Is Cash App?
Cash App is a digital banking solution that comes under the FinTech category. It was launched by Block Inc previously Square Inc in 2013. That gained massive popularity in no time due to its flexibility and services.
This free app is the most used app for digital banking used by US residents after PayPal. Available on both iOS and Android app stores. It allows users to send and receive money, and invest in stocks.
Quick Overview Of Cash App
Quick Overview
- Payment app available on iOS and Android App Stores
- Free to send and receive money from the user’s balance and linked bank account.
- Pay retail payments, buy stocks and Bitcoin
- Best-rated app In the finance app category with over 50 Million users
- Endures best data encryption practices and user security
Significant Details About Cash App
| iOS Rating | 4.5/Stars |
| Android Rating | 4.5/Stars |
| Price | Free |
| Account Type | Individual (Taxable) |
| Customer Support | Email/Chat/Phone |
| Availability | USA, UK, And Ireland |
| Minimum Investment | $1 |
How Does Cash App Work?
Cash App has a user-friendly interface that makes it easier for beginners. You need to follow the below steps to get started on Cash App.
How To Sign Up For Cash App?
1. Download The App
2. Create Your Cash App Account
3. Link Your Bank Account
4. Choose Your Username or $Cashtag
Exploring CashApp Features
Sending Money With Cash App
The money can be sent to users via email address, $Cashtag, and the phone number of the recipient. Every user on the platform has a unique $Cashtag or username.
Money can be sent from the Cash App personal balance, linked bank account, and debit or credit card. Cash App only authorizes American Express, Discover, Visa, and Mastercard.
Sending money from your Cash App balance, linked account or debit card is completely free. However, there is a 3% fee for using the credit card for making Cash App payments.
The usual limit for sending money is $1000 in the last 30 days. That can be increased by verifying your personal information including name, DOB, and last four digits of your SS number.
Receiving Money With Cash App
The received money directly goes to the cash app balance, which later can be withdrawn into your bank account, and debit card. It takes one to three days to show the deposited money in your bank account.
For instant payments, there is a fee between 0.5% – 1.75%. Cash Card is another good thing about Cash App. That can be used to purchase online or in retail stores. The fee for using this Visa debit card is $2.5 at ATMs for cash withdrawals. This doesn’t include the charges taken by the ATM service provider.
If your Cash App account gets direct deposits of $300 each month then the ATM fee of Cash Card will be waived. The best thing about Cash Card is unlocking cash boosts. These discounts help you save money on making purchases with it in places like grocery stores and restaurants.
Banking With Cash App
You can also deposit other funds into our Cash App account including:
- Refund Checks
- paycheck Direct Deposit
A Cash Card is a must to get the banking features from the Cash App. That further gives you FDIC insurance of your money in Cash App up to $250,000. This aids the account holder in getting compensation in case of bankruptcy.
Investing Money With Cash App
If you are a US resident and age above 18, then Cash App allows you to invest money in stocks and ETFs. The investment amount can be as little as $1 without any commissions.
All you need is to complete your personal information in the Cash App profile and employment information.
Cash App also allows you to buy and sell Bitcoins. Users can deposit and withdraw BTC to external wallets as well. It is probably the best platform for beginners in investing.
Does Cash App Work Outside USA?
Cash App is a country-restricted digital payment method. It only works in the United States and the UK for sending and receiving money. If you are out of these regions consider Wise or PayPal as alternatives.
Is Cash App Good For Business Transactions?
Cash App has two different versions for all purposes. The free version limits $1000 each month if you don’t verify your account. However, Cash For Business is recommended for business transactions. It charges a 2.75% fee for receiving business payments.
Is It Safe To Send Money With Cash App?
Cash App uses robust data and user security protocols. All the data goes through secure servers and nothing to worry about. However, scammers may break into your Cash App account by guessing or hacking your login credentials.
Secure your phone through password protection. Set a PIN or Fingerprint ID for each transaction. Using an in-app security lock is another good practice.
Payments made through the Cash App can’t be canceled later on. You need to make sure for each transaction to avoid any mess. Scammers pretend to be Cash App representatives and try to steal your credentials. Never store your sensitive information or share it with unauthorized people.
Pros And Cons Of Cash App
Pros Of Cash App
Free To Use
Being a free app is the biggest plus of Cash App. This means you can deposit, send, and receive money without any fees and taxes. Both apps are iOS and Android apps are available.
Easy To Use Payment App
Its beginner-friendly interface makes it easier and quicker to send money. Whether making online payments, paying a utility bill, or sending a friend rent share with comfort.
The Cash App interface is not saturated with too many buttons, which makes it more comfortable to navigate on your phone screen. You can easily find another Cash App user by searching their username or $Cashtag.
You can make retail payments to the partner retailers by scanning QR codes and through the app. You can utilize your Cash App card for many purposes and get amazing discounts in the form of Cash Boosts as well.
Investing In Stocks And Bitcoin Trading
Cash App enables users to make investments digitally. You can buy & sell stocks and Bitcoin within the app. Further, the same can be sent to anyone and received from anyone.
You can buy fractional shares and ETFs without paying any commission or fee on this app. It leads its rivals in terms of cost-effective and simple digital payment solutions.
The investments can be as low as $1 which can be useful for beginners with minimal understanding. All you need is to sign up, complete your account information, and get started.
Cash App users can automate their investing by picking a regular buying schedule. The app will automatically execute the trading on your behalf.
Trading BTC is not free as compared to the stocks and ETFs trading. You must read the terms and conditions thoroughly before using this app to avoid any mess.
Fee Less International Transactions
As Cash App is limited to USA, UK and Ireland. You can send money to any user without any additional charges. The funds are transferred in local currency as per the live exchange rate at the time of transaction.
Free Electronic Checks Deposit
Depositing electronic checks is completely free in the Cash App. This is the most convenient and cost-effective solution for check deposits. Paper checks can also be deposited in your Cash App account at specified retailers for $1 as service charges.
Customer Support Options
Cash App gives multiple customer support options including email, chat, and phone (only in working days). Everything is available on its website including FAQs for general queries.
Multiple customer support options are the reflection of the extended vision of the company. Choose the right option for yourself and get your issues resolved in no time.
Referrals And Promotions
Within the Cash App, a user can get a unique referral link for promotion. You can share it with your siblings, family members, friends, colleagues, and relatives. Usually, Cash App referrals get $5 as a reward that varies based on the transactions made by the user.
Cons Of Cash App
Limited Regions Of Operation
As discussed earlier, the Cash App is only available in the US, UK, and Ireland. So you must come from these regions to use this app. If you are looking to receive money or pay global clients, Cash App is not a perfect option. The company needs to expand its areas of operation for the ease of its users.
Limited Investment Stocks, ETFs And Features
Unlike other major brokers, Cash App doesn’t offer a large selection. There are 1800 stocks and ETFs available for investing mainly covering the major companies having a market capitalization above $1 billion.
All of them are listed on the NY Stock Exchange and Nasdaq. The number is increasing with time as new stocks are added after some time. ETFs from companies like Vanguard and iShares are also available in the investment option of the app.
Cash App only gives basic investment features and charts in the dashboard. Brief stock overview of some time frames, watchlist, most-traded stocks, and search tab for custom queries.
Limited Cryptocurrencies
Bitcoin is the only currency that can be sold or purchased in the Cash App. None of the emerging Crypto coins like Ethereum are included in the list.
If you are looking for a diverse Crypto investing portfolio, Cash App might not be a good place. There are several alternatives like Webull and Robinhood.
Credit Card Fees
Unlike other payment options, Cash App charges a 3% standard fee for adding funds to your account with a credit card. That doesn’t offer anything distinctive to other digital payment app users.
Transaction Limits For Unverified Accounts
If you are using an unverified Cash App account, it limits users to sending only $1000 in the last 30 days. That can only be revised by verifying your personal information and SS number.
No FDIC Insurance For Non-Cash Card Users
FDIC bank accounts are insured up to $250,000 as compared to the Cash App account. Cash Card is a must for FDIC insurance. Don’t keep funds in your account if you don’t have a Cash Card.
That means you won’t be able to claim any money if Cash App files bankruptcy. Always withdraw your funds into your connected and FDIC-insured bank account.
frequently Asked Questions
Conclusion
As discussed earlier, Cash App is one one-stop solution for all your banking needs. From receiving rent to sharing pocket money with your family, it allows everything at your fingertips.
It is a widely adopted digital app for sending and receiving money and investing in stocks and ETFs. Most importantly, all of its features are free. No taxes or subscription charges for most of the services.
If you are switching to Cash App for business needs, use Business Plan. That gives more flexibility and features for handling bulk transactions. There are several alternatives that can be utilized for your needs.
