Banking Banking Basics

Cash App Fees: How I Get Away With Using the App for Free

Learn about Cash App fees and how to save money on transactions

By Ben Walker, CEPF, CFEI®
and Jessica Crosby

Edited by Yahia Barakah, CEPF

Updated Dec. 17, 2024

Cash App is a popular financial platform for sending money to friends and family. The app doesn't charge any account, maintenance, or annual fees. Standard transfers from a linked bank account cost $0, while instant transfers from a linked debit card cost 0.5% to 1.75%, with a minimum of 25 cents. You can also use a credit card for a 3% fee.

I use peer-to-peer (P2P) mobile payment services like Cash App and Venmo in my everyday life for both personal and professional reasons. I began using Cash App when people started asking if I accepted it. It seems to be as prevalent among my friends as Venmo. It can be useful during a quick Facebook Marketplace exchange, at the farmer’s market, or just with my friends when we split the bill.

Let’s see how these fees work and whether it could be worthwhile for you to explore alternative payment options. I’ll also spill how I use Cash App and pay no fees.

In this article

Key takeaways
What is Cash App?
How much does Cash App charge?
Venmo vs. Cash App fees
FAQs
Bottom line

Key takeaways

Cash App is a popular peer-to-peer (P2P) mobile payment service used for transferring money between individuals, similar to Venmo, Zelle, and PayPal.
The app itself is not a bank, but it works with banks to provide various services, including sending and receiving money, buying bitcoin, investing money, direct deposit for paychecks, and ATM withdrawals.¹ Cash App is a financial platform, not a bank. Banking services provided by Cash App’s bank partner(s).
Cash App doesn't charge any account, maintenance, or annual fees. It also doesn't charge fees for standard transfers from a linked bank account, making it a fee-free service for this form of standard non-instantaneous transactions.
Instant transfers from a linked debit card come with a fee of 0.5% to 1.75%, with a minimum charge of 25 cents. Using a credit card to send money through Cash App incurs a 3% service fee.

What is Cash App?

Cash App is a mobile payment service owned by Block, Inc. (formerly known as Square, Inc.) It’s primarily used to transfer money between individuals, similar to Venmo, Zelle, and PayPal. These types of apps, including Cash App, are called peer-to-peer (P2P) payment apps. The Cash App mobile app is available on both iOS and Android devices, including compatible iPhones and Galaxy phones.

Although billed as a “mobile banking” app, Cash App isn’t actually a bank. It’s a financial platform that partners with banks to provide different types of services. Though Cash App has many features, I use it for its primary purpose — to exchange money.

Cash App is relatively easy to use. You can send money using another user’s email address, phone number, or $Cashtag. You can receive money from Cash App users in the same ways.

I’ve found Cash App to be the perfect tool for small or informal payments. There are times when you need to quickly pay a person digitally. As a mom, I use it for frequent and small payments to people that are more personal in nature. Here are some of my recent transactions on Cash App over the last month:

Paying for a teacher gift so that someone can combine the money for something larger
Providing gas money for carpool
Buying furniture on Facebook Marketplace
Gifting a friend coffee money
Paying my babysitter

Read our Cash App review.

The Cash App Card

Though I have my Cash App connected to a bank account, you can also use Cash App’s debit card for additional features. You may want the Cash App card to utilize funds more easily at places that don’t accept Cash App. Because you can use it the same way as a debit card, you can use it in more places.

The Cash Card, Cash App’s debit card, is free and available to anyone 13 or older. This free debit card is connected to your Cash App balance and can be added to digital wallets such as Apple Pay and Google Pay.² Prepaid debit cards issued by Sutton Bank.

This could be a great option for older children who want to have access to a debit card that you can quickly add money to for things like allowance. But Cash App’s Cash Card doesn’t offer other features that a debit card linked to a true bank account may provide or all the educational and monitoring features that something like the Greenlight debit card offers.

How much does Cash App charge?

Cash App doesn’t have account, maintenance, or annual fees, but you might incur a charge depending on how you use the app. Here are a few fees to watch out for.

Cash App fee	Amount
Send money via a bank account	$0
Instant transfer via a debit card	0.5%-1.75% (minimum of 25 cents)
Send money via a credit card	3%
Investing	$0 commission fees from Cash App, though government agencies could charge fees for trades
Buying/selling cryptocurrency	May range between 2% to 3%, but it varies
ATM withdrawals	$2.50 per withdrawal without direct deposit (additional operator fees may apply at out-of-network ATMS) $0 per withdrawal for customers who receive $300 or more in qualifying direct deposits per month

Tips to avoid fees on Cash App

Cash App isn’t free, but there are plenty of ways to avoid fees on the app. I use Cash App as a simple money exchange app, and I have never paid a fee to use it. Here’s how I do that:

I don’t link the app to a credit card. Cash App doesn’t charge a fee for transactions when you link your Cash App account to your bank account or debit card.
I wait 1-2 days to receive money on the app. Cash App charges up to a 1.75% fee when you rush a money transfer. This won’t necessarily work for everyone, but I tend to exchange smaller amounts of money that I don’t need to access as quickly.
I don’t use Cash App for ATM withdrawals. My bank reimburses me for ATM withdrawals, so I stick with my banking debit card for this.

Fee to get money faster

Cash App provides two options to cash out your Cash App balance. This includes a standard deposit to a linked bank account or an instant deposit to a linked debit card.

The standard deposit option is free and typically takes one to three business days to process. If you go for the instant deposit, you’ll have to pay a Cash App instant transfer fee of 0.5%-1.75% (minimum of 25 cents) to instantly receive the money on your debit card.

I often exchange smaller amounts of money, so waiting a couple of days for a transaction to go through is fine, and I have never opted for the instant transfer feature.

Alternatively, you could request a Cash Card and spend your Cash App balance without having to transfer it to a bank account or debit card.

Fee for using a credit card to send money

If you want to send money through Cash App using a credit card rather than a linked bank account or debit card, you’ll have to pay 3% of the total amount.

This is similar to most P2P payment apps, including Venmo. Cash App supports credit cards from most major card networks as a payment method, including Visa, Mastercard, American Express, and Discover.

Investing fees

Cash App doesn’t charge a fee for opening a Cash App investing account. It also doesn’t collect commission fees or require you to maintain a minimum balance on your account.

However, certain government agencies may charge fees for any trades you make, which will be disclosed to you before the confirmation of the trade.

Bitcoin fees

You’ll likely see a fee from Cash App when you buy or sell bitcoins through its app. This fee can vary, so it makes sense to input how many bitcoins you want to buy or sell and check what the fee is. Any fee will show up on the trade confirmation screen before you complete the transaction.

We conducted a few test transactions (without completing the trade), and the fee typically hovered between 2% to 3% — but can go as low as 0.75% for larger trades.

ATM fees

Cash App charges $2.50 per ATM withdrawal. This doesn’t include the additional fee you’ll likely be charged by the ATM itself for making a withdrawal with a card from a different bank.

If you want to avoid some ATM fees with Cash App, set up direct deposit and pass the threshold of $300 or more of qualifying direct deposits per month. Each month you meet the threshold, you'll qualify for unlimited free withdrawals. Keep in mind that this only applies to the Cash App side, and certain ATMs may charge operator fees.

Venmo vs. Cash App fees

I use Venmo more than the Cash App because the people I exchange money with use Venmo. The features I utilize on both apps have the same fees, so for me that’s not what make the difference between the two services.

Here’s a comparison of the fees on Venmo versus Cash App:

	Venmo fees	Cash App fees
Send money (via linked bank account)	$0	$0
Send money (via credit card)	3%	3%
Receive money	$0	$0
Standard transfer	$0	$0
Instant transfer	1.75% (minimum 25 cents, maximum $15)	0.5%-1.75% (minimum 25 cents)
Investing	N/A	$0 from Cash App, though government agencies could charge fees for trades
Buying/selling cryptocurrency	1.5% to 2.3% (minimum 50 cents)	Varies (often between 2% to 3%)
ATM withdrawals	$0 in network $2.50 out of network	$2.50 per withdrawal or $0 if you receive $300 or more in monthly direct deposits You could qualify for ATM fee reimbursements with qualifying direct deposits

Overall, the fee structures are fairly similar between Venmo and Cash App, especially with the main features most users are likely to use. Both Venmo and Cash App users are charged a 3% standard fee for credit card payments. One main difference between the two services is that you can invest in stocks with Cash App, but not Venmo.

Since both apps are free to use at the basic level of sending and transferring money, I have an account on both platforms. As both platforms gain prominence and stay comparable, you may see the people you exchange money with using different platforms.

For other options for managing your money, check out our list of the best money apps.

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FAQs

What is the Cash App fee for sending or receiving $100?

Cash App doesn’t typically charge a fee for sending or receiving $100, with a few exceptions. If you use a credit card to send money through Cash App, you’ll pay a 3% fee, which is $3 for a $100 transaction. If you receive money on Cash App and want to cash it out immediately, you’ll pay up to a 1.75% fee for an instant deposit. That would be $1.75 for cashing out $100.

How much does the Cash App withdrawal fee cost?

Cash App doesn’t charge a withdrawal fee for cashing out your balance unless you choose the instant deposit option — in which case there’s up to a fee between 0.5%-1.75%. The standard deposit, which takes one to three business days, is free.

Cash App charges $2.50 per ATM withdrawal. This fee is waived if you receive $300 or more in qualifying direct deposits in a month to your Cash App account.

How do you avoid fees on Cash App?

To avoid fees on Cash App when sending or receiving money, don’t use a credit card to send payments and don’t use the instant deposit option when cashing out your balance.

To avoid some ATM withdrawal fees, receive $300 or more in eligible direct deposits to your Cash App account.

Bottom line

Cash App is a popular option for sending and receiving money, and it’s made inroads into the worlds of investing and cryptocurrency. But if you don’t feel like Cash App has the services or features you need, you have other options to consider.

Keep in mind that Cash App is a financial services company and not a bank. This could mean a bank might have a wider range of services to offer you. For more information, check out our list of the best banks.

You can get a lot out of Cash App if you use it as a peer-to-peer money payment system, and it’s especially useful if your personal or professional circles use the app, too. I use it to exchange money just as easily as cash. It stops me from having to get cash out of an ATM, make change, or delay payments.

Disclaimer: All rates and fees are accurate as of July 17, 2024.