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
Cash App review 2020

The Cash App was created by Square, Inc, and is a peer-to-peer payment service. 

  • As of May 2020 Cash App's services are only available at the US and UK.
  • Cash App is visited by 8.4 Million users every month
  • Considered one of the hottest payment apps of 2020
  • Fairly resonable services fees compared to other platfroms (Venmo,PayPal…)
  • Stocks and bitcoin options available (fees are added)
 

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, you can  start by using use these links for downloading the app on your device:

as well as on any web browser when you go to Cash.app. It’s possible to add money to your account using  Cash App while using the funds from a free Cash Card Debit card (Visa)

Cash-App - send payment

Start sending payments with Cash App in a few easy steps:

  1. Complete the proper registering process and verify your account.
  2. Open your Cash App mobile app on the device.
  3. Enter the amount you want to send.
  4. Click “Pay.”
  5. Enter the email address, phone number or (“$Cashtag” – A person's username in the app).
  6. Enter why you are sending the payment for.
  7. Tap “Pay.” – Done!

The Main Benefits of Cash App

  • No fees, almost - Cash App don't charge any monthly fees, fees to send or receive money on the app, inactivity fees or foreign transaction fees
  • optional free debit card - “Cash Card” allows users to make transactions and withdraw the money that they have in Cash App accounts. The card is by Sutton Bank and is unique only to a user’s perosnal Cash App account. the card isn’t connected to a personal bank account or another debit card for that matter.
  • Free ATM withdrawals if you set up direct deposit - if not, the fee is $2 to use an ATM with a Cash Card.
  • “Cash boosts” help you save money when using the debit card - Users who own the Cash Card can choose a certain “boost” on their account that allows them to save money on a purchase with a vendor or supplier of services (for example, 15% off an order with DoorDash). Only 1 boost is allowed to be active, but you can switch up boosts as often as you wish.
  • Get cash bonus for friends who join using your referral code - If you send a referral code to your friend and they sign up to Cash App using your link, then both you and your friend get cash bonus for this action.

    You’ll get $5 per friend who signs up, and they’ll get $10 for signing up.
  • Investing Options - the Cash App allows to buy stocks in ceratin companies with as little or as much money as they feel comfortable to invest. Stocks can be bought with the funds in your Cash App account. if you don’t have enough money in the app, then the remaining amount will be charged from your linked bank account.
  • Buying Bitcoin but there's fees - Cash App allows you to buy and sell bitcoin, but Cash App will charge 2 types of fees in that situation: a service fee for each transaction and, depending on market activity, an additional fee determined by price volatility across U.S. exchanges.

5 Things to-know before Using Cash App

  • 3% fee to use a credit card for payments - Cash App charges 3% of the transaction to send money via linked credit card. compared with other money transfer apps; Venmo, for example this is a reasonable fee. other companies like the mentioned venom also charges 3% to send money with a linked credit card.

    try avoiding this fee, use your linked bank account or the existing money in your Cash App account to send payments.
  • spending limits on the Cash Card - A maximum that can be spent on Cash Card is $1,000 per day or per week.

    The maximum that can be spent per month is $1,250.
  • withdrawal limits on Cash Card - A maximum amount that can be withdrawn with ATM or store register cash-back transaction is $250 per transaction, $250 per day, $1,000 per week and $1,250 per month.
  • funds aren’t FDIC-insured - Cash App’s functionality may resumable a bank, but there is a clear distinction between the app and a banking / financial institutionAltough Cash Card is issued by FDIC-insured Sutton Bank, customers’ funds in Cash App are never transferred or held with Sutton Bank and therefore don’t receive FDIC insurance.

More about cash app

  • Account Verification - It is super- easy to set up your Cash App account. Just enter the requested information, get a code sent to you (Mail or Phone verification) 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.
  • 4 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.
  • Payment Notifications - When you send money, the recipient gets a text or email to let them know.
  • Payment Methods Linked To cash app accounts - 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 2 speeds when it comes 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.
  • instant option - the money is deposited immediately but, you’re also charged a fee of 1.5% of the full deposit amount to do this.

Cash App Limitations

There are a few limits to the Cash App. 

Like mentioned before, 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).

Cash App Security and Access

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 by choosing the perfect payment app for you.



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.

Cash App 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% fee added. The instant deposit option also requires a fee of  1.5% of the deposited amount.

 

Business account payments –  automatically charged 2.75% 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% and $0.30 per transaction when you make payments using PayPal Credit, debit, and credit cards.

     

  •  Venmo – also charges 3% to send money with a linked credit card.

  • 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 % of the total) and instant deposits (1.5% of the total).

Final Rating

4.5/5
4.5/5

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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