Money transfer apps let you transfer money easily, quickly, and safely to your family member, friend, or even business partner. Money transfer apps have now over taken the internet and are now gaining the market of banking ahead of our physical brick and mortar buildings.
With several money transfer apps that are now outsider like Zelle, Venmo, Paypal, and many others, transfer of money has now turned into and easy job in just a matter of seconds.
Cash app, is also one of the many money transfer apps considered in the list of the best money transfer apps. And recently Cash app users have boosted in numbers.
Well, are you one of those who are looking forward to using cash app and want to knw what Cash app is and how it works? Do you want to know how to get a cash app account and how you can use that account to send and receive money?
In this article, we will be uploading some important facts you should know about Cash app as a beginner to help you understand what you have to do with. Just keep up the reading to know everything including some other questions you could be thinking of.
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What is Cash App and How does Cash App work?
Cash App is an amazing online P2P Money transfer app that was formerly created as Square. This online transfer app is owned by Block and was created to send and receive money to and from another account, or another bank including both online and physical banks.
The platform was created back in 2013, and since then, it has broadened its range and currently offers other services like Cash App-connected debit cards, direct deposit assistance, and an investing platform. Customers can also take advantage of cashback promotions (referred to as "Boosts") from eateries and shops including McDonald's, Walgreens, Walmart, and Whole Foods.
The Cash App is largely a smartphone app, as its name would imply (available on the App Store and Google Play) though you will still be able to use it even if you don't have the app on browsers like Chrome and Safari.
How does it Work?
The primary function of cash app is to send and receive money to and from other users and other banks. And to do that, you will just have to start by clicking the money icon "$" in the app.
Well, Cash app in the first place is most often used in the application and can be downloaded on Play Store for android users and on App store for apple users. And you can still use it on recommended browsers following the link at Cash App to use it.
But once you have an account, the main function is to send and receive money. Other functions can be providing you with a debit card for ATM withdrawals at physical banks, investment in Stocks and Bitcoins. What is good is that most of cash app's features are completely free of charges.
One of the things that sets Cash App apart from other online payment platforms is the free Visa-certified debit card, called a Cash Card, that users can request and use it at any bank's ATM to withdraw Cash App money.
Well, sending and receiving money is quite easy, but sending to the right person could be the main problem here. You have to know who you are sending money to since Cash app money is not FDIC insured. That is, if you are scammed, you are not assured to get your cash back; though you can get it back but after some digging and very concrete reasons after the platform checks.
Cash App Pros and Cons
Pros
- Easily make and receive mobile payments
- You can buy and sell Bitcoin
- No fee option to send and receive money
- Simplifies reimbursements
- Invest in stocks with no commission fees
Cons
- Low early limit for the first 30 days(only $1,000 for the first 30 days)
- Used only in the United States
- Does not come with Federal Deposit Insurance Company (FDIC) coverage
How to Open a Cash App account
To open a Cash app account, it's very easy. You first have to download the app and sign up from there, or you simply open your browser(Google Chrome recommended) and signup from there before you can download the app later on and login to your account.
And to open a cash app account, the main things needed are your name, ZIP code, and either an email or phone number. If you follow the procedure well, then you should have an account easily.
You won't forcefully have to link it to your bank account or debit card immediately. But to gain full and total control of your account, then linking them is the first thing you should do. After linking, you will able to send and receive money easily.
You can also get your username(also known as the $cashtag) which is the main thing that we use to differentiate accounts and to know who you are sending money to. Then the debit card is later on requested on wish(that is, if you need it).
This card can be used at any bank's ATM that supports VISA. And you will be charged a fee of $2 during withdrawals at ATMs with this card.
How to Send and Receive Money on Cash App
Cash App's user interface is a really straightforward one, which makes sending and receiving money pretty simple. To send money, locate the receiver in the app using their name, phone number, or $Cashtag.
An SMS or email alert will be sent to the recipient when you donate the money. The recipient controls how quickly the transfer is processed.
You can send a request for payment to receive money. The person's name, $Cashtag, email address, or phone number can all be used to send the request. Once payment has been received, the app will let you know, and you may then decide how quickly you want the money.
You have the choice of depositing money you receive into your bank account or your debit card that is connected through Cash App. The money transfers instantaneously to your debit card, but it can take up to three days for the money to reach your account. Both of these deposits, though, are gratuitous.
You must pay a fee of at least $0.25 and a fee of 1.5 percent of the entire amount if you want an instant deposit sent to your account.
Is Cash App Safe?
It is quite true that Cash App is not FDIC insured, but that feature is for physical banks and you won't see this option with online banking options like Cash App.
But in order to secure its consumers, Cash App claims to deploy the most recent encryption and fraud protection technology. When logging into your account, the app will send you a one-time-use login code(OTP verification) as a security safeguard.
Additionally, Cash App provides configurable settings for adding extra security precautions. For instance, you can require your passcode for each Cash App payment by turning on a lock key. Also, you can disable your Cash Card using the app, which may be useful if your card is lost or stolen.
What Withdrawal Limits do I have with my Debit Card?
Yes it is true that you get a debit card, but you can't withdraw any thing at anytime with the Cash app debit card. You will have a limit in the withdrawals. These are the withdrawal limits
- $310 per transaction
- $1,000 per 24-hour period
- $1,000 per seven-day period
And more to that, you will be subject to a $2 withdrawal fee for every transaction you withdraw.
Should I buy Bitcoin on Cash App?
Although purchasing Bitcoin and other cryptocurrencies is now simpler than ever thanks to apps like Cash App, Venmo, and Robinhood, you should exercise caution before doing so.
To begin with, compared to traditional equities, cryptocurrencies are a relatively new asset class, which adds to their highly volatile value and significant daily and even hourly price changes. According to experts, it's wise to limit your cryptocurrency holdings to less than 5% of your overall portfolio and to make sure they don't interfere with your ability to save for emergencies and pay off high-interest loans.
While popular cryptocurrency exchanges offer additional features and industry-leading security methods to secure investors' coin, while apps like Cash App are frequently easier to use.
Final Thoughts on the Cash App Review
Cash app is an amazing platform for anyone. And to use Cash app at it's full capacity, you should have a bank account or debit card linked to your cash app account.
Well, after linking them, you can send money directly from your bank account to any other user in your cash app, or to your cash app balance itself.
Investing into bitcoin or crypto currency too is also an amazing option if you are new to Cash app. You can buy crypto currencies on Cash app.
But make sure your transactions are safe and you should know who you are dealing with before starting any transaction.
Cash App is not FDIC insured and so if you loose your money, you won't forcefully recover your cash.
Some Frequently Asked Questions(FAQs) on the Cash App Review
Here are some answers to some questions that could be bothering you.
1. How Long Does It Take To Send Money on Cash App?
Cash on Cash app is practically a very rapid procedure that can take up to 5minutes for instant transfers. But the instant transfer is payable with a fee of about 1%. And if your transaction on Cash app takes long, then you will have to follow the app's step by step procedure to bypass that and quickly receive or send the money
2. Can I use Cash app only with Cash App users?
No. You can send money on cash app to other cash app users and also to other banks(in the US). That is quite easy to guess, especially since you can link your cash app account to your bank account.
3. How is Cash App different from Zelle?
Cash app and Zelle differ in two main ways. Firstly, Cash app has withdrawal limits meanwhile you'll not see that with Zelle. Also, Cash app is very much diverse from Zelle and Zelle can only send and receive money; meanwhile on Cash app, you'll get things like a Cash card for ATM withdrawals, Crypto currency purchases and sales.
4. How Can I differentiate Cash from Venmo and Paypal?
Similar to Cash App in operation, Venmo is focused exclusively on individuals. Additionally, Cash App is accessible to companies. Additionally, Venmo allows customers to sign up for a credit card, whereas Cash App and PayPal only provide debit cards.
Additionally, the transaction limits for each mobile app vary. When sending money to family and friends, PayPal, one of the more established payment apps, doesn't charge a fee. However, if you receive money in exchange for goods or services, PayPal will charge a fee.