Cash App – An Honest Review & Breakdown (2020)

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Everything you need to know before using cash app and how it compares against other popular financial apps
cashapp

The Cash App was created by Square, Inc., and is a peer-to-peer payment service. Businesses and individuals can receive and send payments using their debit or credit card on the app. Plus, it is a free download from iOS and Android phones, as well as any web browser when you go to Cash.app. It’s possible to add money to your account using the Cash App while using the funds from a free Cash Card Debit card (Visa).

The Main Features of Cash App

It is easy to set up your Cash account. Just enter the requested information, get a code sent to you, and confirm the email address or phone number. Then, you can choose whether it’s going to be a personal or business account. You’re also going to have to link your bank account so that you can send/receive money.

 

There are four ways to send and receive money with Square Cash. You can go to the Cash App website, use the Cash App, ask Siri to send money for you, or use the iMessage integration for Apple products.

 

When you send money, the recipient gets a text or email to let them know.

 

If you plan to receive money through the app, you can request a Cash Card (free) to spend from the Cash account, or you can link to your debit card or bank account so the money can be deposited into it.

 

You’ve also got two speeds to deposit money: instant and standard. The standard deposit can take three days before posting to the account. Plus, it can take longer if it’s the weekend or a national holiday where banks are closed.

 

The instant option means the money is deposited immediately, but you’re also charged a fee of 1.5 percent of the full deposit amount to do this.

Cash App Limitations

There are a few limits to the Cash App. Each week, you have a spending limit of $2,500, but that is after you verify your DOB, name, and the last four numbers of your SSN. If you don’t do this, you can only spend $250 a week.

 

However, there is no limit to how much you can receive once you’ve verified all of the information listed above. If you don’t, you can’t receive more than $1,000 a month (30 days).

 

Many people wonder about the safety of Cash App. After all, you’re linking bank accounts and letting acquaintances and strangers give and get money from you. According to Square’s website, Cash App uses the safety standards and fraud detection infrastructure that it uses for business customers who use the POS transaction. Therefore, the information is encrypted and then sent to the Square servers. Still, there’s always a chance of fraud and an information breach regardless of the features in place. 

 

Of course, Square also allows you to take extra precautions, such as enabling Security Lock through Cash App. You have to enter a passcode on every Cash payment to authorize it. Plus, you have access to Face ID and Touch ID, as well as two-factor authentication through your email provider (if offered). It’s also possible to get a text each time a payment is successfully made from the Cash account.

 

You should be aware that Cash App is available only in the United States, and not in the US territories, such as Guam, Virgin Islands, Puerto Rico, Northern Mariana Islands, and American Samoa. Plus, you cannot use Cash App if you live abroad or go to other countries. 

 

One way to get around this is to download the overseas app version. Square released a Cash App version in the UK, as well as Canada, Australia, and Japan recently. If you’re into it, you can sell and buy bitcoin with the Cash App now, as well.

 

It’s also important to note that the app (on a smartphone) is only compatible with iPhones with the latest version of iOS and Android devices with their latest operating systems. Along with that, business accounts cannot send payments and can only accept payment for services and goods.

Cash App vs. Other Similar Apps

There are a variety of person-to-person payment networks out there. These can include PayPal, Zelle, Google Pay, Venmo, Popmoney, and many others. We’re going to talk a bit about how Cash App compares to them so that you can make a more informed decision.

 

PayPal and Cash App work similarly for withdrawing money from the sender’s balance or a debit card connected to a bank account (free). They also both charge a fee for credit card payments. With both options, the recipient can choose to have funds put in a bank account or on their Cash Card Debit or PayPal Cash MasterCard. Both apps also offer standard and instant deposit speeds. 

 

Zelle and Cash App aren’t quite as similar. Cash App allows you to withdraw money from the app balance, debit from a bank account, or even a credit card, and deposits it into the recipient’s account balance. Zell, on the other hand, withdraws money from your account and deposits it into the recipient’s account, making it immediately available to use. With Cash App, you can choose between instant and standard payments, paying more for immediate use of the funds. Along with that, Zelle is designed to work with people you know well, so it doesn’t offer any type of fraud protection for sales or purchases.

 

Google Pay allows you to withdraw money using your default payment method (its balance, credit card, or debit card). Then, it deposits it into the default payment method of the recipient. Everything is handled instantly, whereas it can take up to three days with Cash App, depending on the option you choose.

 

Venmo and Cash App work similarly, so you can withdraw money from the balance, debit from a connected account, debit, or credit card. Plus, both options offer instant and standard deposit features.

Commissions Compared

If you use the Cash App for personal use, there are no fees to receive, request, or send money payments from a bank account or debit card when utilizing the standard deposit. However, if you use a credit card to make a personal payment, there is a 3 percent fee added. The instant deposit option also requires a fee of 1.5 percent of the deposited amount.

 

Business account payments are automatically charged 2.75 percent of the amount that was paid regardless of how the payment was made.

 

Now that you know what Cash App charges, we are going to compare it to the other networks.

 

PayPal doesn’t charge a fee for standard bank transfers, but it does charge $0.25 for instant transfers to eligible bank accounts that have been verified. Instant, in this case, means about 30 minutes. PayPal also charges a fee of 2.9 percent and $0.30 per transaction when you make payments using PayPal Credit, debit, and credit cards. 

 

With Zelle and Google Play, there are no fees to use the service, regardless of the methods you choose. Cash App does charge fees for sending payments with a credit card (3 percent of the total) and instant deposits (1.5 percent of the total).

Conclusion

As you can see, when compared to other person-to-person payment networks, Cash App works very similarly. The fees are quite reasonable, though you can find other options with no such costs. Still, they might not be as safe and secure as the Cash App.

 

Therefore, we think that this is a great app to use when you want to shop online or make payments online without using your actual debit or credit card.

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