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Cash App Review
If you’re looking for an app that serves as a one-stop destination for money transactions, then you should definitely download and check out Cash App. With Cash App, the process of transferring money from one end to the other, paying for items after shopping, or simply paying the bills like your home utilities has never been easier. In less than a minute, with a few clicks, you can receive and send money, and you don’t need to worry about searching through your wallet to find a credit card with enough credit remaining to pay for something.
Cash App is free and makes money transactions look seamless. The app also comes with fabulous features that set it apart from the ordinary American money transfer app. Here is everything you need to know about Cash App to decide if it is the right fit for your personal finance needs.
Onto our Cash App review!
What Is Cash App?
Cash App is a money transaction app that was founded in 2013 by Square, Inc. The company is headquartered in Sans Francisco, California. Of note, Square itself has a reputation of being led by innovators and creating new and unique apps for consumers; after all, the financial services company was founded by none other than Jack Dorsey. Cash App acts basically like a peer-to-peer payment system that enables users to receive, send money, and undertake vital banking transactions, all using the innovative app. Cash App is PCI Data Security Standard Level 1 compliant, which is the most significant payment industry data compliance level.
Aside from being one of the most widely used money apps by American consumers right now, Cash App is also one of the most user-friendly mobile platforms that are available as well. When you open a Cash App account, you receive a debit card known as the Cash App Cash Card. This debit card can be used all over the United States for all of the payment transactions you would normally use a conventional bank debit card for.
Cash App also has a strong reputation for security, and does an excellent job monitoring and detecting fraudulent activities on the platform. Accounts are checked, and some are monitored to avoid the app being used to perpetrate fraud. To avoid fraud, the app encrypts all transactions done on its platform, allowing for a more secured financial transaction at the end. Also, the platform advocates for advanced security on your account – this is done using a two-factor authentication biometrics security on your Cash App account for that added security.
Cash App undertakes over one million transactions a week and has over 30 million users on its platform. One truly innovative feature offered by Cash App is that the platform lets you trade Bitcoins and Stocks while still offering its services as a money transaction app. Stocks are traded for free using Cash App; this expands the platform from a one-stop destination for money transactions into a high-tech brokerage business at the same time.
On the downside, Cash App charges a 3% fee on credit card payments from the platform. Again, the app limits most of its features to verified account holders only, and lastly, the app allows transactions in the U.S only, even if Cash App is available in the country you seek to undertake the transaction.
Let’s delve deeper into our Cash App review.
Features That Set Cash App Apart
For an app to be as good as it claims, certain features must be present – these features are the underlying structure that sets the app apart from any of its competitors. Cash App has some unique features that make the app definitely worth a second look. Here are some of the things that Cash App does better than many of the other financial apps you can download these days.
Limits and Verifications
After opening an account on Cash App, you would notice you would be told to verify your account immediately. This verification is vital to your overall access to all the app offers as well as your freedom on the app. Verifying your identity increases your transaction limit on Cash App. A non-verified account on Cash App cannot receive payments of more than $1000 in a month and can only send out or make payments of $250 or less in a week as well. Once a user verifies their Cash App account, that user can receive an unlimited amount of money on Cash App and can send out payments up to $2500 every week.
This verification process is not complicated either. Cash App verifies your age to ensure you’re at least 18 years, so having some sort of ID for your date of birth is important. Cash App also verifies your name and the last four digits of your Social security number. Where your ID cannot be verified by Cash App (i.e., due to lack of documentation), the app would require you to provide further information to assist it with your verification.
Keep reading for more of our Cash App review below.
Cash App Fees
Opening an account on Cash App is free but there are some other hidden charges on the platform. Depositing money into the app is free. If you are making a standard withdrawal, which is a slower option to choose on Cash App; the app offers free transactions on all standard withdrawals. For example, Cash App charges a fee of 1.5% on the amount withdrawn. For ATM withdrawals, Cash App charges $2 on each withdrawal but the sum will be reimbursed up to three times a month.
Also, if you pay for goods and services using your credit card, Cash App charges 3.00% for your transaction. To avoid the Cash App credit card charges, it is advisable you use your debit card or bank account, which are both free of charge on Cash App. Aside from these fees, the app offers other transactions free from any charges.
Cash App, ATMs, and Cash App Cash Card
When you open an account with Cash App, you get a free Cash Card that acts similar to your conventional ATM cards. The Cash Card can be used in any ATM for any transaction.
As discussed previously, Cash App would charge you for using ATMs to make withdrawals, and the ATM would also charge you a separate sum. However, Cash App would have your charges returned to your account if you made up to 3 ATM withdrawals in a month and you receive a paycheck of $300 in your Cash App account.
Also, Cash App only reimburses ATM withdrawals if a minimum of $7 is withdrawn for each of the 3 ATM withdrawal. Cash App also allows you to make a maximum of $310 per transaction using your Cash Card and a maximum of $1000 can be withdrawn every 7 days.
Cash App Platforms
The Cash App mobile app is available in the Play Store and the App Store. The app isn’t offered on BlackBerry or any other device aside from Android and Apple devices. Cash App also has an online platform that users can access with their computers as well, a feature that many of its mobile-only competitors lack.
If you’re looking for a one-stop station for everything, then Cash App is the ideal money app for you. The app doesn’t just let you undertake money transactions but as hinted at previously, also offers you the opportunity to trade on it with real money.
Presently, Cash App allows users to trade on two items: Bitcoin and Stocks. For Bitcoins, the app charges users a commission of 1.7% on every Bitcoin trade. For Stocks, Cash App allows users to trade on the platform for free, without any commissions on trades. This investment feature allows clients to easily draw from their savings and invest them; another great feature most mobile financial apps lack.
How to Get Started
Before you can undertake any function on Cash App, you have to download the app and get your account registered. After registering on the platform, you are eligible to conduct four major activities on the platform. These are: trading Bitcoin and stocks, sending money, receiving money, and adding direct deposits to your Cash App account. Let’s take an in-depth look at the process of registering on the Cash App.
Registering on Cash App
To register on Cash App, you would have to first download the platform from your Play Store or App Store. Once the app has been downloaded, click in to gain access to the App. The app will ask for your phone number and email, and afterwards, will send a verification code to your mobile phone. Once you enter the verification code on the platform you can begin creating your profile and using the app.
Afterward, you will select your “$Cashtag,” or username on the app, then add your email and a photo of you to finish up your profile. The app will then prompt you to accounts like your credit card account or a bank account to send payments. Once this is done, you will be all set and able to execute financial transactions on the platform.
Sending Money on Cash App
To send money using the Cash App, all you require is the recipient’s $Cashtag, phone number, or email. Once you have entered any of the above information, Cash App prompts you to identify the source account you would like to draw funds from to make the payment. The cash is taken from your bank account, your Cash App balance, or your credit card. After that, all you have to do is add your reason for the payment (if any) and click on Pay to transfer the money.
Remember, sending payments from your bank account or your Cash App balance is free, while credit cards incur a fee of 3% for each transaction. As stated earlier, an unverified account can send $250 or less a week, while you can send up to 2,500 weekly once your account is verified.
Receiving Money on Cash App
If you receive money on the Cash App platform, the money goes into your Cash App account balance and can subsequently be withdrawn to a bank connected to your account or a debit card. When receiving money, there are two options to choose from, the instant deposit and the standard deposit option. The standard deposit lets you receive money on your Cash App within one to three business days, while an instant deposit to your account or debit card skips the three days process and lets you receive the money instantly; however, this comes with a rush fee of 1.50%.
If you like payment convenience, you can also request the Cash Card, to leave money on the Cash App platform. That way, you can use the Cash Card to pay for goods or services and at ATMs. Remember, if you use the Cash Card on an ATM, Cash App will charge you a $2 fee, which excludes any additional fees the ATM would charge.
Bank with Cash App
Aside from sending and receiving money on the Cash App platform, users can also use the platform as a deposit house or a banker, where they deposit money like tax refunds, paychecks, and so on. Getting your paycheck, tax returns, and direct deposits on Cash App fast tracks the process, letting you receive the cash up to two days earlier than expected.
To set up direct deposits on Cash App you just have to access the banking section in the app, click on ‘Deposits and Transfers,’ and then click ‘Enable Direct Deposit’ to turn on your direct deposit account.
To gain access to the banking feature, you will need to acquire a Cash Card. However, before you do, you should note that Cash App doesn’t have the Federal Deposit Insurance Corp. (FDIC) coverage. The FDIC coverage covers amounts leading to $250,000 of your cash if an institution goes bankrupt. If you decide to deposit money with Cash App, your money isn’t protected by FDIC.
Invest with Cash App
Investing with Cash App is another option to explore while on the platform. Cash App allows users to invest in stocks and Bitcoin with funds as low as $1, with no commission fees for stock trading and little commission fees for Bitcoin.
To invest in Cash App, open the app and move on to the stock page in the app. Then, search for the item you would want to buy or sell (Bitcoin or Stock), move on to select the number of shares you would like to purchase, then tap ‘Buy’ to complete your purchase or ‘Sell’ to complete your sale.
This trading feature is available in the U.S only and is open to users with verified accounts. If you aren’t an expert in the world of investment, it’s good you study the concept and how it is done before investing in Cash App, the app is a pretty bare-bones investing platform and has few resources to assist beginners.
Safety on Cash App
On Cash App, all payments made have their information encrypted and delivered through secure servers. However, some risk can be incurred whenever users leave their phones around carelessly and third parties gain access to the platform through their phones. Cash App usually recommends a strong password for your phone generally and an in-app security lock that allows the platform to request a password for every deposit and payment transaction.
Reversing a transaction made to a person is impossible on Cash App. Make sure you are fully acquainted or familiar with the person you intend to send the money to. Most times scammers tell you they prefer Cash App for a transaction and insist you pay before they undertake your transaction, once you send the money using Cash App, they disappear.
Also, be careful of callers claiming to be agents of Cash App, this could likely be a scam. Cash App would never call to ask for your sensitive details like username or password or social security number.
Cash App Reviews
We examined three different sites to check users’ reviews of Cash App, these sites were: Trustpilot, Apple App Store, and the Play Store.
On Trustpilot, Cash App had a very poor rating of 1.2 stars from 5 stars ranking, with reviews by over 2000 customers. The reviewers on Trustpilot expressed disgust as to the fraudulent transactions, the stress of verifying accounts, and poor customer service, amongst others. Neither Cash App nor Square has commented on the low rating on Trustpilot.
Since Cash App is primarily a mobile app, we should take a look at how the app performed on the App Store and the Play Store. On the App Store, Cash App has a rating of 4.5 stars out of a 5-star ranking. This performance on the App store was reviewed by over 400,000 users of the platform and was ranked as excellent by the App store.
On the Google Play Store, Android mobile users gave Cash App a whopping 4.2 stars out of 5 stars ranking. The 4.2 stars score was derived from a review pull by over 200,000 Android users on the platform. This ranks the platform high amongst Android and Apple users.
On Reddit, there was a mixed view of a positive and negative outlook for Cash App. Complaints from Reddit ranged from sudden Cash App account closures without notice, lack of customer support, refused transactions with little or no reason, and fraudulent transactions.
Cash App’s comparison with Other Competitors in the Market
There are tons of money transaction apps in the United States, some of which are discussed below in our Cash App review.
- Zelle: The platform allows users to send, receive, and execute direct deposits of cash. Zelle offers its users a quick and secured bank direct deposit for paycheck receipts, taxes, and so on. The platform offers its users the convenience of sending and receiving money all for free, with no hidden cost on the platform. Users also enjoy an unlimited amount when sending money to third parties.
- Google Pay: The Google Pay platform has received tons of accolades like Cash App. The Google Pay platform offers users the opportunity to send and receive money free of fees or commissions, with no hidden charges. The platform allows users to send a maximum of $10,000 and also has an instant withdrawal option with no added cost.
- PayPal: PayPal offers users the opportunity to send and receive money with the most convenient features. In the PayPal platform, if users send money by bank account, the transaction is free, but if users send money using their credit or debit cards, the transaction will incur a 2.9% fee. For receiving money, making standard withdrawals from money received is free, but instant withdrawals attract a fee of 1%. The platform also has a limited sending amount of $10,000.
- Venmo: Users on the Venmo platform get access to sending and receiving cash for free. However, if you are making use of the instant withdrawal option, then you would pay a 1% fee on the transaction. The platform offers users the opportunity to send a maximum of $4,999.
- Walmart: Users of this platform get to send money to a third party for a fee of $4 and above. Receiving money on the platform is free, the same as is on all withdrawals, including instant withdrawals on the platform. Walmart has a sending cap of $2,500.
Cash App Pros and Cons
Here are the basic Cash App review pros and cons you should be aware of:
- No fees on standard service and app opening when using Cash App.
- Cash App allows for swift payment of funds from one party to the other.
- The app allows you to invest in Bitcoin and Stocks in addition to standard banking transactions.
- Cash App has features that are convenient for users.
- The app offers basic security checks before a transaction.
- There is little or no security for sending transactions.
- Cash App allows users to send money to the U.S only; it cannot be used to send money abroad.
- Low sending limits of $2500 a week.
- Investing features are available to U.S users only.
- Funds are not FDIC insured.
Frequently Asked Questions
We answer the most commonly asked questions in the section below.
Is Cash App safe?
Cash App is considered fairly safe to use, however, with anything financial, you should use it with caution to avoid scammers. Cash App recommends the following to keep your money and account safe:
- Don’t send money to people you don’t know.
- Never give anyone (including Cash App support staff) your personal information like your Cash App PIN or sign-in code.
- Never pay someone before you receive the goods or services you are buying.
- When sending money, make sure you double-check their information so you can ensure it ends up with the right person.
Which Cash App scams do I need to look out for?
The way scammers work with Cash App is by promising you something that requires you to pay them money first. The scammers take your money and never come good on their promise. If it seems too good to be true, then it probably is.
Some of the most common Cash App scams you need to be aware of are:
- Cash flipping scams: Cash flipping scammers will tell you that if you send them your money they will “flip” (increase) it, and send it back to you. These scammers will often tell you the payment is for a “clearance fee” or “account verification” then steal your money.
- Payment claiming scams: A payment claiming scam is where a scammer will contact you and ask you to claim a payment that you “deserve”. Don’t ever send money to these people as it is a scam.
- Puppy and pet deposit scams: A puppy or pet scam usually works by scammers posting pictures of purebred puppies at very low prices. Never send anyone money before you have seen the puppy in person and you know the transaction is legit.
- Rental deposit scams: Rental and apartment scammers will offer you a rental property that doesn’t exist and ask you to pay a deposit before viewing the property. Never send money to anyone for any goods or services before you receive them.
Is Cash App FDIC insured?
One thing to consider when using Cash App is that your funds are not FDIC insured.
Is Cash App legit?
Yes, Cash App is a legitimate financial app created by the company Square, Inc. If you do decide to use the app, make sure you follow the safety advice spelled out on the Cash App website to ensure your usage of the app follows best practice guidelines.
Cash App Review Parting Thoughts
Cash App has been a popular financial application since its establishment has secured over 30 million downloads and enjoys heavy use every day in the United States. While the app has faced some serious criticism, particularly for customer service and security against fraud, it is nonetheless a highly convenient app for executing the financial transactions we all have to do on a daily basis. The investment features really set Cash App apart from its peers as well. So, if you’re looking for a no-nonsense innovative mobile financial platform, you should definitely check out Cash App.
Thanks for reading our Cash App review.
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