Cash App Card

Cash App allows you to send funds to friends and family at no cost. You can even use it to pay businesses. How does it stack up against its competitors? Find out below.

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What Is Cash App?

Cash App is a peer-to-peer payment service, like Zelle and PayPal, offered by Square. You can use it to send funds to friends and family using your smartphone.

If you opt for the Cash App Card, you can also make purchases anywhere Visa debit cards are accepted.

How to Use Cash App

You can transfer money as soon as you download the app and open an account. Read on to get started.

Linking a Bank Account or Credit Card
In order to send funds from Cash App, you'll need to link your bank account or credit card. Follow these simple steps:

1. Tap the Balance tab on the home screen
   
2. Select Add a Bank
   
3. Follow the instructions provided

You can also transfer funds you receive in Cash App to your linked bank account. Or you can request the Cash App Card. It's a debit card that lets you spend the funds available in your Cash account.

Sending Cash
You can send funds once you link a bank account or credit card. Sending money using a bank account or debit card is free. But you'll pay a 3% fee if you use a credit card.

You can send cash from:

• Cash App on your phone
  
• Cash.me website on your PC
  
• Cash App integration in iMessage
  
• Siri

Receiving Cash
You'll need to share your email address, phone number, or $cashtag to get money. Any money you receive gets deposited into your Cash account.

Here are the two ways to access funds from that account:

• Link your personal bank account to Cash App and transfer the funds out of Cash App.

• Request a free Cash App Card and use it the way you would any other Visa debit card.

Pros

Send Money Using a Phone Number or Email
Pay friends instantly with just their phone number, email, or $cashtag. You don't have to share bank account numbers or other personal info.

It's Free
Paying friends/family and transferring funds to your bank are free. But there is a 1.5% fee to expedite transfers to your bank account and a 3% fee if you pay with a credit card.

Instant Fund Transfers
Splitting a bill or paying friends back without cash isn't a problem with Cash App. With just the recipient's phone number/email and a dollar amount, you can transfer money from your Cash App account to theirs instantly.

Cons

Low Limits
You can only send up to $250 per 7-day period. Plus, you can only receive a maximum of $1,000 over a 30-day period. If you want to increase your limits, you must verify your:

• Full name
  
• Birth date
  
• Last four digits of your Social Security number

Not FDIC Insured
Cash App accounts don't have FDIC insurance. This puts you at risk of loss should the bank go out of business.

Can't Cancel Payments
If you change your mind or simply made a mistake, you can't cancel funds you've already sent. You'll need to ask the recipient for a refund through the app.

The Cash App Card

Instead of linking a bank account to your Cash App account to transfer funds, you can request a free Cash App card. It is a Visa debit card that allows you to spend the funds directly from your Cash account.

The Cash App card works anywhere that Visa debit cards are accepted. You can also use it at ATMs.

Here are some more benefits of the Cash App card:

• Earn dollar off and percentage off savings at certain vendors or in specific categories.

• Add your Cash App Card to your Apple Pay Wallet via the Cash App dashboard.

• Entering your pin at checkout allows you to choose the cash-back option at stores. There's no fee to withdraw your funds this way.

But there are some downsides, like:

• Cash App charges $2 for ATM withdrawals plus any ATM fees from the bank you used to withdraw the funds.

• The ATM withdrawal limit is up to $250 per transaction and $1,000 in 24 hours and 7-day period. You can withdraw a maximum of $1,250 per month.

How It Compares

Venmo
Owned by PayPal, Venmo was the original peer-to-peer payment app. It features a social component, too. All payments are listed on a public wall—unless you choose to make them private.

Venmo lets you pay friends or family with a linked debit card or money in your Venmo account. The platform doesn't charge fees to send money via a linked bank account, debit card, or Venmo funds.

You can also receive funds free of charge. But like Cash App, there is a fee for instant transfers.

Zelle
Many major banks already incorporate Zelle into their apps and websites. All you need is a valid email address to send the funds to anyone.

If the recipient doesn't have Zelle yet, the platform will provide instructions on how to receive the funds. Zelle doesn't charge a fee to send or receive funds, but double-check to make sure your bank doesn't charge fees.

PayPal
You can send money to family, friends, or businesses that accept PayPal throughout the U.S. and overseas. There's no fee for standard money transfers and purchases using a linked bank account within the U.S. But you could pay a fee if you fund the transaction with a credit card.

Like Cash App, PayPal offers an instant transfer option for a fee. Otherwise, transfers take between one and three business days.

Bottom Line

Cash App does offer a convenient (and free) way to transfer funds. It's a great way to pay friends or family instantly without disclosing too much private information.