Cash App: A Comprehensive Review

Cash App is a versatile financial app that offers a range of services beyond just sending and receiving money. It's a great alternative to traditional banking, with features like instant deposit and a debit card.

One of the standout features of Cash App is its ability to invest in stocks and Bitcoin, with no commission fees. This makes it easy to get started with investing, even if you're new to the world of finance.

Cash App is also known for its user-friendly interface, making it easy to navigate and use. The app is available for both iOS and Android devices, and can be accessed anywhere with an internet connection.

With Cash App, you can send and receive money instantly, with fees as low as 1.5% for instant deposits. This makes it a convenient option for splitting bills or paying friends back.

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Cash App has its roots in the UK, where it was first launched as Square Cash in 2013. The app was created by Jack Dorsey, who also co-founded Twitter.

The app was initially designed to allow users to send and receive money using their debit cards. This was a game-changer for people who wanted to split bills or pay friends back without the hassle of cash or checks.

In 2017, Square Cash was rebranded as Cash App, and it quickly gained popularity in the US. Today, Cash App is one of the most popular mobile payment apps in the country.

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In September 2016, Cash App introduced a guarantee of "instant deposit" for money received via the app, with users paying a 1% fee to achieve this, or waiting until the next business day for deposits to post.

Cash App users can buy things on websites and apps using money stored in the app, thanks to the introduction of virtual payment cards in 2016.

By October 2019, Cash App had added support for stock trading to users in the United States, giving them a new way to manage their finances.

Cash App has evolved beyond just peer-to-peer money transfers. It now offers a range of financial services.

One of the key features of Cash App is its ability to help users manage their finances. You can use it to send and receive money, making it a convenient way to split bills or pay friends back.

Cash App has also branched out into investing, allowing users to buy and sell stocks, as well as invest in Bitcoin. This feature is available to users aged 13 and up.

In addition to investing, Cash App also offers free tax filing through Cash App Taxes. This can be a huge time-saver during tax season.

Cash App's services are provided by Block Inc., not a bank. This is an important distinction to keep in mind when using the platform.

Here are some of the key services offered by Cash App:

In June 2023, Cash App faced a technical issue that caused double charges for certain Cash Card transactions, but the company fixed the issue and announced refunds to customers.

The Consumer Financial Protection Bureau (CFPB) issued a statement in the same month warning consumers not to store their money for the long term in payment apps like Cash App, Venmo, and PayPal.

These accounts may not be safe because they are not federally insured by the Federal Deposit Insurance Corporation (FDIC), making it essential to consider alternative options for long-term savings.

A notable event in 2023 was the name change of Square, Inc. to Block, Inc.

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Cash App offers a range of features and services that make it a convenient and versatile financial tool.

You can buy, sell, and hold stocks and Bitcoin through the app, although playing the stock market isn't covered by FDIC insurance. This means you can also purchase and send Bitcoin using Cash App, with the option to automatically convert your paycheck into Bitcoin.

The app allows you to transfer money to other users without fees, and you can also transfer money to your bank account for free using ACH payments, although this takes a few days. Instantly transferring money from your Cash App balance to your bank account costs from 0.5% to 1.75% of the money you're transferring, with a minimum of $0.25.

Cash App also offers early direct deposit, allowing you to get your paycheck up to two days early. This can be a huge perk, especially if you're living paycheck to paycheck.

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Cash App offers a range of investment options through its integrated platform. You can invest small amounts in stocks with Cash App through a brokerage account, along with ETFs. This brokerage account holds the stocks and ETFs you buy, and the money you get from selling these stocks and ETFs goes directly into your cash app balance, which you can spend with your Cash App Card.

Cash App also allows you to buy, sell, and hold Bitcoin. In 2018, the capability to buy and sell cryptocurrency was added to the app, and as of 2023, the only cryptocurrency supported by Cash App was Bitcoin. This means you can purchase and send Bitcoin using Cash App.

You can also use Cash App to make Bitcoin transactions, and you can choose to have parts of your direct deposit be automatically converted to Bitcoin. This feature can help you get started with investing in cryptocurrency.

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Here are some key details about Cash App's stock trading and cryptocurrency services:

Note that playing the stock market is not covered by FDIC insurance, like the Cash App Card and Cash App Savings account are. This means you should be aware of the risks involved with investing in the stock market and cryptocurrency.

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The Subscription Services segment of Cash App is a significant contributor to the platform's revenue. It includes financial-services products such as Cash App's card, Instant Deposit volumes, and interest earned on customer funds.

Revenues for this segment in Q3 2023 were a notable $1.04 billion. This represents a substantial 29.48% increase from the $803.67 million generated in the same period the previous year.

This segment accounts for a considerable 29.03% of Cash App's overall revenue.

Cash App uses standard encryption and fraud detection technology to protect users' data. It also has a system in place to prevent fraud, including multi-factor authentication and account transaction limits.

The app's balances are FDIC-insured through Wells Fargo Bank for up to $250,000 per person, providing an added layer of security for users.

Cash App has been called a "secure payment platform" and is Level 1 compliant with the Payment Card Industry Data Security Standard (PCI-DSS), a benchmark used by large credit card companies.

However, Cash App is not immune to scams and safety risks. In fact, complaints against Cash App skyrocketed by 472 percent in 2020 compared to 2019, according to the Federal Trade Commission.

Scammers often use fake phone support numbers to trick users into revealing sensitive information, while others create fake sweepstakes and programs to steal funds. Here are some common scams to watch out for:

In 2021, Block extended the Cash App service to people over 13 years old for depositing and spending money or sending it to friends, with minors needing parental permission and oversight.

Lower-income adults were the most likely to use Cash App, according to a Pew Research Center report in September 2022, with 26% of U.S. adults using the app at least once.

By 2024, Cash App reported 57 million monthly transacting user accounts and $14.7 billion in annual revenues, a significant growth since its extension in 2021.

Cash App's growth in the U.S. market has led Block to prioritize it over global expansion, as seen in its decision to cease operations in the United Kingdom on September 15, 2024.

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Personal loans can be a convenient option for some users. Cash App allowed a subset of users to borrow up to $200 from the app in October 2023.

It's essential to be aware of the terms and conditions of any loan. Borrowing from Cash App may have its own set of rules and regulations.

If you're considering borrowing from Cash App, you should know that the amount you can borrow is capped at $200.

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Cash App's business model is designed to be user-friendly and accessible, with the app being free to download for Android and iOS devices. This initial free offer incentivizes more users to create an account and use its services.

Additional services beyond standard money transfers are available for a small initial fixed cost plus percentage fees. Users can buy and sell bitcoin from the platform for a small service fee based on the current bitcoin market volatility.

If users don't have a direct deposit account with the app, they'll be charged a $2 fee for withdrawing money from an ATM. Businesses can also accept Cash App as a form of payment and charge a transaction cost of 2.75%.

Cash App earns its primary income from users withdrawing funds from the app to their linked bank accounts. Money can be transferred into a third-party bank account without charge within five business days, or instantly for a 1.5% fee.

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Cash App users have been severely affected by COVID-related scams, with complaints against the app skyrocketing by 472 percent in 2020 compared to 2019, according to the Federal Trade Commission.

Scammers have been using fake phone support numbers to trick users into revealing their sign-in credentials, Cash Card details, or other valuable information. They've also been using fake Twitter sweepstakes, such as #CashAppFriday, to lure users into sending them money.

Fake grants and programs are another common scam, where scammers contact users on social media and tell them they'll receive a prize for being vaccinated against COVID, but first they need to send a small amount of money.

Quick-cash investment scams are also prevalent, where scammers promise to turn $10 into hundreds or thousands of dollars, but in reality, they're just trying to get their hands on users' money.

Here are some common scams to watch out for:

A Cash App user in North Carolina lost $24,000 to fake phone support scammers, who got the money from their Cash App account and even more from their linked checking account.

To earn interest on savings, you must be at least 18 years old and have a Cash App personal account. This means you can start building your savings habit from a young age.

The savings account offers a base yield of 1.50% APY if you have a Cash App Card. This is a relatively standard rate, but it's still a great way to earn some interest on your money.

To unlock the higher rate of 4.50% APY, you'll need to set up monthly direct deposits of $300 or more into Cash App. This means you'll need to have a steady income and be able to commit to regular deposits.

Cash App Savings also helps you contribute money to savings goals, making it easier to stay motivated and on track. To create a savings goal, you'll set a goal amount and add an emoji that represents your goal.

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Cash App's revenue is reported in three business segments: transaction-based revenue, subscription-services revenue, and Bitcoin revenue.

The company doesn't break down income by business segment, so we can't see how each segment contributes to overall revenue.

Block, the parent company of Cash App, reports revenue by business segment, giving us a glimpse into the app's financial operations.

One of the segments, transaction-based revenue, is likely a significant source of income for Cash App, given the app's focus on peer-to-peer payments.

Subscription-services revenue is another segment that contributes to Cash App's revenue, although the specifics of this revenue stream are not publicly disclosed.

Bitcoin revenue is the third segment, which is likely driven by Cash App's Bitcoin trading and investment services.

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Cash App doesn't offer 24/7 customer service, unlike many banks that provide around-the-clock support.

You won't be able to reach out to Cash App's customer support via email, a notable limitation compared to some banks.

Cash App does have a chat service within the app, which can be a convenient way to get help.

However, if you need to speak with someone directly, you can call Cash App's phone line, but it's not a 24-hour service.

Unfortunately, you won't be able to visit a Cash App office in person to talk to someone, since it's an app-based service.

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Cash App adheres to federal laws requiring payment apps to verify the identity of its users, including collecting sensitive information like full name, the last four digits of your Social Security number, and date of birth.

To set up a Cash App account, you'll need to provide personal and financial information, including your phone number, email address, and bank account information.

Data encryption secures personal data while in transit to Cash App's servers, but a recent security breach occurred when a former employee illegally accessed and downloaded reports related to Cash App Investing.

Fortunately, the stolen information only included full names and brokerage account numbers, but no other personally identifiable information was compromised.

Cash App stores data in its own servers as well as those of third-party service providers located in various countries, including Japan, Canada, the United States, and European Union countries.

The company takes administrative, technical, and physical safeguards to protect data from misuse, theft, disclosure, and unauthorized access.

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Cash App has a solid track record, with the exception of a recent security breach. They run a legitimate payment processing business and have a secure transaction structure.

Cash App's trustworthiness is also reflected in their transparent review process. They use Personal Finance Insider's bank account rating methodology to review their products, including the Cash Card and Cash App Savings.

We can trust Cash App's review process because they rate each product category on a scale of 0 to 5, and then calculate the weighted average to determine the final score. This ensures that their ratings are fair and accurate.

Cash App's ratings are based on categories such as customer service, security, and fees, among others. They also consider how their products compare to similar accounts, making their ratings more comprehensive.

Cash App has a solid track record, with the exception of a recent security breach. This incident highlights the importance of taking extra precautions to protect your account.

Cash App runs a legitimate payment processing business, which is a good sign of trustworthiness. It's essential to do your part in securing your account to avoid any potential issues.

As long as you stay away from scams and protect your personal information, you should not have to worry when using Cash App.

We use a rigorous review process to ensure our ratings are accurate and trustworthy. We looked at customer service, security, miscellaneous features, the mobile app, ethics, and fees when evaluating the Cash Card. Each category received a rating between 0 and 5.

We also consider how the Cash Card compares to similar accounts when determining its rating. This helps us provide a fair and unbiased assessment.

Our ratings factor in a weighted average of the categories, giving more importance to certain aspects. For the Cash Card, we looked at seven categories and used a 0 to 5 rating scale for each.

We use a similar process to review the mobile app, ethics, interest rate, and fees when evaluating the savings account. We give each category a rating between 0 and 5, and then calculate the weighted average.

We rated these products on a scale of one to five stars, with a one-star rating being the lowest possible and a five-star rating being the highest possible. This helps readers quickly understand our assessment of each product.

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Cash App doesn't charge monthly fees, fees to send or receive money, inactivity fees, or foreign transaction fees.

You'll pay 3% of the transaction to send money via a linked credit card, which is a standard fee compared to other money transfer apps.

To avoid this fee, use your linked bank account or the funds in your Cash App account to send money.

The maximum that can be spent on your Cash App Card is $7,000 per transaction and $25,000 per month.

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People 13 years and older can use the app, but users 17 and younger must have an adult sponsor their account to use some features.

You'll pay a percentage-based charge for instant transfers from your Cash App balance to your bank, and a flat fee for cash deposits with participating retailers.

If you direct deposit $300 into your Cash App, you can get those fees waived, including out-of-network ATM fees and instant balance transfer fees.

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Cash App doesn't charge monthly fees, fees to send or receive money (unless you're sending from a credit card), inactivity fees, or foreign transaction fees.

If you use a credit card to send money, you'll pay a 3% fee, which is standard compared to other money transfer apps.

You can avoid the credit card fee by using your linked bank account or the funds in your Cash App account to send money.

There's a fee for instant deposits of Cash App funds to your bank account, ranging from 0.50% to 1.75% of your total transfer.

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You can deposit your Cash App funds to your linked account with a standard transfer, which takes one to three business days, without a fee.

Cash App charges a $2.50 fee for out-of-network ATM use, in addition to any fees the ATM itself might charge.

If you direct deposit $300 into your Cash App, you can get those fees waived.

For instant balance transfers to your bank account, Cash App charges a percentage of the money you're transferring, with a minimum of $0.25.

You'll pay $1 every time you go to an affiliated store to deposit cash into your account.

If you have the Cash App debit card, you can make withdrawals at an ATM, but out-of-network withdrawals cost $2.50 each, plus any ATM operator fees.

Unverified accounts can only send up to $250 per week and receive $1,000 per month, but verifying your account raises the weekly sending limit to $7,500 per week and removes the receiving limit.

To verify your account, you'll need to submit your legal name, date of birth, and the last four digits of your social security number.

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Cash App has spending limits in place to protect you and your financial information. The maximum amount you can spend on your Cash App Card is $7,000 per transaction and per day, and $10,000 per week.

You can withdraw up to $1,000 per transaction, $1,000 per day, and $1,000 per week from an ATM or store register cash-back transaction.

To use some features on Cash App, users 17 and younger must have an adult sponsor their account. This is a requirement for minors to access certain features.

Cash App doesn't offer 24/7 customer service, so you may not be able to get help right away if you need it.

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Cash App offers several benefits that make it a convenient and cost-effective option for managing your finances. One of the main advantages is that it doesn't charge any monthly fees or overdraft fees.

You can also take advantage of in-app discount offers for purchases with certain retailers, which can help you save money on everyday items.

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Cash App also allows you to earn up to 4.50% APY on your savings, making it a great way to grow your money over time.

Here are some of the benefits of using Cash App at a glance:

Cash App has its advantages, and here are some of the benefits you can expect.

No monthly fees or overdraft fees are associated with Cash App, making it a cost-effective option for managing your finances.

In-app discount offers for purchases with certain retailers can help you save money, but it's essential to check the terms and conditions of each offer.

You can round up Cash App Card purchases to your savings or purchase Bitcoin, giving you the flexibility to manage your money in a way that suits you.

Earning up to 4.50% APY on Cash App Savings is a great way to grow your money over time.

Here's a summary of the benefits:

P2P apps like Cash App offer unique benefits that set them apart from traditional banking and finance options. Cash App Savings doesn't charge a fee, making it a cost-effective way to save money.

To open a Cash App Savings account, you need a Cash App Card and an initial deposit of at least $1, or less if you use the roundup feature. The account earns a competitive interest rate of 4.50% if you meet certain requirements, including having a Cash App Card and at least $300 in direct deposits each month.

Referring friends to Cash App can also earn you a cash bonus. You receive a cash bonus per friend who signs up using your referral code, making it a great way to earn some extra money.

Investing in specific companies with Cash App is another unique benefit. You can buy stock with as little or as much money as you want, and the app allows you to purchase stocks with funds in your Cash App account or linked bank account.

Cash App also offers a free tax-filing service that's guaranteed to be accurate. This can save you time and money, and if you choose to have your refund deposited to your Cash App account, you could receive your return up to five days faster than with a bank account deposit.

Buying and selling Bitcoin with Cash App is another benefit, although the app might charge a fee for the transaction. You'll see the fee before you complete the transaction, giving you control over your costs.

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Getting Started with Cash App is a breeze. You can download the app for free from the App Store or Google Play Store.

To begin, you'll need to create an account, which requires your name, email address, and phone number. This is a one-time process that helps you verify your identity.

Once you've set up your account, you'll be asked to add a debit card or bank account to link to your Cash App. This allows you to send and receive money easily.

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To add money to Cash App, you need a bank account, debit card, credit card, or prepaid card.

You'll load money on Cash App by tapping the Money tab in the app's home screen, then tapping "Add Cash" and inputting how much cash you'd like to add from your linked account.

You'll need to confirm the transaction by entering your PIN for the app or by using a biometric ID.

To send money with Cash App, you can use your linked bank account, debit card, or other funding source.

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To send money with Cash App, you'll need to link a bank account, debit card, or other funding source. You can use this funding source to send money to other Cash App users.

To send a payment, follow these simple steps: Tap "Pay" in the Cash App mobile app, enter the amount you want to send, and then tap "Pay" again. You'll need to enter the recipient's email address, phone number, or "$Cashtag" (their username in the app).

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To make a payment, you'll also need to add a brief description of the payment. This is a good opportunity to note what the payment is for, so you can keep track of your transactions later.

Cash App allows you to make instant money transfers for free, and these transfers won't come with any additional fees.

Cash App has made significant strides in feature additions since 2016, including instant deposit with a 1% fee and virtual payment cards for online purchases.

In 2019, they took it a step further by introducing stock trading support for US users, allowing them to buy and sell stocks directly within the app.

The Cash App Card is a prepaid debit card that offers a lot of customization options. You can design your own card, choosing the color and material, and even add your own designs.

One of the key benefits of the Cash App Card is the ability to earn discounts through the "offers" feature, which can be found in the Discover tab of the app.

Cash App's user experience and accessibility are key features that set it apart from traditional banks. Since Cash App is an app, you can access it anytime, anywhere, making it equally accessible from your home as when you're traveling.

Unfortunately, this also means that Cash App has no in-person branches, so if you like banking in-person, you're out of luck. This is a major drawback for those who prefer face-to-face interactions with their bank.

Cash App is generally less expensive than traditional banks, thanks to its lack of physical locations. This means you'll save money on fees compared to traditional banks.

Cash App is free to download and its core functions, such as making peer-to-peer payments and transferring funds to a bank account, are also free.

Cash App makes money by charging businesses and individuals transaction fees, from subscription services, and selling Bitcoin to customers. This includes instant money withdrawals, which cost 0.5% to 1.75% of the value transferred out.

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Sending money from a credit card will also be subject to a 3% fee. Businesses and users are charged various fees for different services.

The Bitcoin segment of Cash App's business is its largest revenue generator. Cash App factors the differences in what Bitcoin exchanges and individuals pay for Bitcoin into the prices it offers its users, generating additional revenue on the exchanges it facilitates.

For its third quarter fiscal year (FY) 2023, Cash App brought in revenues of $3.58 billion, an increase of 33.5% year-over-year (YOY). The Cash App segment reported a gross profit of $983.86 million, a 27% YOY increase.

Transactions include fees charged for peer-to-peer transactions made by businesses and individuals, which saw revenues of $120.78 million in Q3 2023, a 1.96% increase from $118.46 million YOY.

The Cash App segment accounts for 3.37% of Cash App's revenue.

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Cash App uses standard encryption and fraud detection technology to protect users' data.

Cash App balances stored on the Cash App Card are FDIC-insured through Wells Fargo Bank for up to $250,000 per person.

The app is Level 1 compliant as per the Payment Card Industry Data Security Standard (PCI-DSS), similar to large credit card companies.

However, Cash App doesn't offer features to recover money sent by users to others.

Payment apps like Cash App are prime targets for scammers and fraudsters.

In 2020, complaints against Cash App skyrocketed by 472 percent compared to 2019, mainly due to scammers using the payment app for fraudulent transactions.

Here are some common scams that target Cash App users:

Phishing is the No. 1 risk for Cash App users, which could lead to the hacking of their account and loss of funds.