Cash App Review [2023]: Is it a Safe Way to Send and Receive Money?

If you’ve ever been out with a large group, chances are you’ve had someone ask to send you their share of the tab via Cash App. The app simplifies the process of transferring money or paying a friend with a credit card. With just a few hits of a button, you can send and receive money for free when using a linked bank account or for a 3% fee when using a credit card.

Cash App gets high praise from users who give it a 4.8-star rating in Apple's App Store. Learn how it works, who it’s for, and whether it’s safe to use In this Cash App review.

Key takeaways

• Cash App is a simple payment app created by Square, Inc. (now called Block, Inc.) in 2013. The app is available for iOS and Android devices.
• Sending payments from your Cash App balance or bank account is free, but if you use a credit card to send a payment, there’s a 3% transaction fee.
• When you receive money, it goes into your Cash App account first, and then you can withdraw to a connected bank account or debit card. A standard deposit shows up in your bank account within one to three business days, whereas an instant deposit to your debit card happens instantly but has a fee that ranges between 0.5%-1.75%.
• Cash App isn’t a bank, but it offers banking services. This allows you to deposit funds, including direct deposits, into your Cash App banking account. The Cash App account balance is FDIC insured through Cash App's partner banks.
• Cash App enables users to invest in stocks and exchange-traded funds (ETFs) for as little as $1, with no commission fees. It also supports bitcoin trading.

What is Cash App?

Cash App is a peer-to-peer payment app created by Block, Inc. (previously known as Square, Inc.) in 2013. The mobile app is available for iOS and Android and is widely popular. Cash App had 51 million users in 2022, and it ranks first in the App Store finance category.

Cash App is just one of many products that Block offers to help people with money transactions. Headquartered in San Francisco, California, Block launched in 2009 under the name Square and provides payroll tools, payment hardware, and more for restaurants and other small businesses.

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How does Cash App work?

Cash App has four main functionalities: sending money, receiving money, mobile banking, and investing.

Sending money via Cash App

All you need is the recipient’s email address, phone number, or $Cashtag to send cash. The $Cashtag is the name that each Cash App user sets up within their app profile.

After entering the person’s information, the app will ask where you want to withdraw money to make the payment. The money can come from your Cash App balance, linked bank account, debit card, or credit card. Cash App accepts Visa, MasterCard, American Express, and Discover.

Sending payments from your Cash App balance, linked bank account, or debit card is free. If you use a credit card to send a payment, there’s a 3% transaction fee.

You can send up to $1,000 within a 30-day period, but that limit will increase if you verify your name, date of birth, and last four digits of your Social Security number.

Receiving money via Cash App

When you receive money, it goes into your Cash App account first, and then you can withdraw to a connected bank account or debit card.

A standard deposit shows up in your bank account within one to three business days, whereas an instant deposit to your debit card happens instantly but has a rush fee that ranges between 0.5%-1.75%.

If you don't want to use bank account withdrawals, you can also request a Cash Card. The Cash Card is a Visa debit card that lets you use Cash App funds to purchase items online or in retail stores.

There’s a $2.50 fee if you use the Cash Card at an ATM, plus the ATM servicer may charge a fee as well. The Cash App ATM fee can be waived by receiving $300 or more in qualifying direct deposits per month. 

On the flip side, having a Cash Card gets you access to Cash Boosts. These are discounts you can add right in your phone to save money on everyday purchases like at restaurants and stores.

Banking via Cash App

Besides receiving payments from friends, you can deposit other funds — such as your paycheck direct deposit and tax refund check — using Cash App banking.

You must order a Cash App card to unlock the banking feature. According to the website, setting up direct deposits into your Cash App account could help you get your paycheck up to two days faster than direct deposit to another bank.

If you have Cash App's card, then then your Cash App account balance is FDIC insured through Cash App's partner banks. FDIC insurance guarantees up to $250,000 of your cash if a financial institution goes belly up.

Investing via Cash App

Cash App Investing lets you invest in fractional shares of stocks and ETFs for as little as $1 with no commission fees. This feature is available only to U.S. residents who are 18 years or older. To sign up, you need to tell Cash App your full name, date of birth, Social Security number, address, and employment information.

If you’re new to investing, learn more about how to invest money.

Cash App also supports cryptocurrency. However, the only cryptocurrency it supports is bitcoin, which you can buy and sell within the app. You can also deposit bitcoin or withdraw it to an external wallet.

Who is Cash App best for?

Cash App is one of the best money apps for person-to-person transactions between friends and other people you trust. There’s no need to remind your roommate to pay their share of the rent or utilities each month. Instead, you can just send them a Cash App payment request.

Another app that works very similarly is Venmo. Learn how Cash App and Venmo compare.

Using Cash App outside the U.S.

There are location limitations to money transfers via Cash App. Cash App is primarily aimed at transactions within the U.S., but you can also send money to people in the U.K. Money transferred across the pond is converted from USD to GBP. If you’re living abroad or trying to send money to someone in another country, you could consider PayPal or Wise instead.

Using Casp App for banking needs

Before using Cash App to handle your banking, shop around to see which of the best checking accounts or high-yield savings accounts are available at credit unions or online banks.

Cash App offers banking services in collaboration with its bank partners. The app offers direct-deposit functionality, but the banking features are limited. The account doesn’t earn interest, you can’t deposit or write checks, and there’s a $2.50 ATM fee for people who don't receive at least $300 per month in qualifying direct deposits.

The best banks have no ATM fees and expanded banking features, such as mobile check deposits, mobile payments via services like Zelle, and other essential financial services.

Using Cash App for business transactions

For businesses and retailers, the personal Cash App account may not be ideal for many transactions. It’s free to use, but you can only send up to $1,000 in a 30-day period until you go through the steps of verifying your account.

Plus, tracking dozens of Cash App payments could be an accounting and logistical nightmare. Cash App has a Cash for Business version that you can upgrade to, but there is a 2.75% transaction fee for each payment you receive.

Is it safe to send money with Cash App?

Payment information is encrypted and sent through secure servers, according to the Cash App website. You should take some additional steps to ensure no one can send money using your phone without your permission. Cash App recommends password-protecting your phone and enabling the in-app security lock, which will require a PIN or touch ID for each transaction.

Also, keep in mind that you probably won’t be able to cancel payments you send to another person’s Cash App. Because of this, you should be extra careful when sending money to people you don’t know, especially if you’re trying to buy something. A popular scam is for sellers to say they accept only Cash App payments and then ghost you before sending the product.

If someone calls or texts you claiming to be from Cash App customer support, that could be a scam too. The Better Business Bureau previously warned that people posing as Cash App support reps have been asking users to set up a new Cash App account to troubleshoot a problem, only to run off with their Cash App balance.

How to sign up for Cash App

1. Download the app: Head to the Apple or Google Play store to download the app for free.
2. Enter your phone number: Cash App will ask for your phone number to send a confirmation code. Enter the code you receive to start the account.
3. Choose your $Cashtag: Add a photo, $Cashtag, and email to complete your profile.
4. Link financial accounts: Add a bank account or credit card account to send payments.
5. Send and receive money: Get the $Cashtag, email, or phone number from your friends to send them money, or send payment requests to receive cash.

Cash App FAQ

Cash App review: bottom line

No one likes being the person splitting up the check after everyone throws in a credit card. It can make a mess of your personal finances.

Cash App has made it easier to navigate this situation — pay with your credit cards, collect the points, and have everyone else send you money through Cash App. Cash App also offers a banking product and investing product that allows you to invest in stocks online for free.

The app does have some limitations, though. You can’t send or receive more than $1,000 in a 30-day period until you verify your account. Say your best friend is trying to send you their share of the hotel stay and airfare after a vacation. You might have to wait until their account is verified before you can get the money.

Also, make sure that you’re careful when sending cash. If you accidentally send money to the wrong person, there’s no guarantee you’ll get it back. Check and re-check the $CashTag, phone number, and email address before you send money.

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