Quickly moving around money is a must for today’s modern world, whether it’s to pay a friend for dinner or to collect rent from your roommates. And you have multiple options to choose from, including using popular apps like Cash App. But are its services always free or do you have some fees to worry about?
Cash App fees could apply in some cases. Let’s see how these fees work and whether it could be worthwhile for you to explore alternative payment options.
What is Cash App?
Cash App is a mobile payment service owned by 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.
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. This includes being able to send and receive money, buy bitcoin, invest money, receive paychecks through direct deposit, and withdraw money from ATMs.
Cash App is relatively easy to use. You can send money with Cash App using another user’s email address, phone number, or $Cashtag. To receive money, you need to set up a Cash App account.
The Cash App Card, Cash App’s debit card, is free and available to anyone 13 years of age 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. The Cash App mobile app is available on both iOS and Android devices, including compatible iPhones and Galaxy phones.
Read our Cash App review.
How much does Cash App charge?
Cash App doesn’t have any 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 credit card)||3%|
|Instant transfer||1.5% (minimum of 25 cents)|
|Investing||$0 from Cash App, though government agencies could charge fees for trades|
|Buying/selling cryptocurrency||2% to 3% is common, but it can vary|
|ATM withdrawals||$2 per withdrawal
Cash App will reimburse up to $7 in fees per withdrawal up to three times every 31 days after receiving $300 or more in qualifying direct deposits per month
Fee for using a credit card to send money
Wondering how to pay your friend with a credit card? Cash App offers this service, but it’s going to cost you a service fee. 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.
Fee to get money faster
Cash App provides two speed 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 1.5% Cash App instant transfer fee (minimum of 25 cents) to instantly receive the money on your debit card.
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.
Cash App doesn’t charge any fees 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.
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%.
Cash App charges $2 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 ATM fee reimbursements of up to $7 per withdrawal. You can receive up to three of these reimbursements every 31 days.
Venmo vs. Cash App fees
Venmo and Cash App provide similar services, but how do their fees compare? Let’s take a look.
|Venmo fees||Cash App fees|
|Send money (via balance/debit card/bank)||$0||$0|
|Send money (via credit card)||3%||3%|
|Instant transfer||1.5% (minimum 25 cents, maximum $15)||1.5% (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 per withdrawal
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 and a 1.5% fee for instant transfers. One main difference between the two services is that Venmo is part of an ATM network; Cash App is not. On the other hand, you can invest in stocks with Cash App, but not Venmo.
For other options for managing your money, check out our list of the best money apps.
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 a 1.5% fee for an instant deposit. That would be $1.50 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 a 1.5% fee. The standard deposit, which takes one to three business days, is free.
Cash App charges $2 per ATM withdrawal. This fee can be reimbursed if you receive $300 or more in qualifying direct deposits in a month to your Cash App account. Qualified accounts can receive up to three reimbursements (worth up to $7 each) every 31 days.
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 and you’ll qualify for ATM fee reimbursements. You can receive three reimbursements (worth up to a maximum of $7 each) every 31 days.
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.
Disclaimer: All rates and fees are accurate as of Nov. 12, 2021.