Cash may be king, but that kingdom seems to be going increasingly digital. It’s no wonder money transfer and payment apps are so popular, they make sending money easy and fast. Cash App stands out from the rest by allowing users to pay for their purchases at selected merchants. In addition to the peer-to-peer payment services offered by Bitcoin, you can also invest in stocks and trade Bitcoin.
CNBC Select researches the app’s features, benefits, and drawbacks to help you decide if it’s the right payment app for you.
cash app guide
How does Cash App work?
cash app
On Cash App’s secure site
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Fee
Free to download and use the basic service
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transfer speed
Instant cashout deposits in 1-3 business days or 1.5% fee (minimum 25 cents)
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Standout features
The app allows users to invest funds in individual stocks, buy and sell bitcoins
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Link to account
Yes, bank account and credit card
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availability
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Security function
Data encryption and fraud detection technology.Unique one-time login code, two-factor authentication
Strong Points
- Free debit card for opted-in users
- Free ATM withdrawals if you have set up direct deposit (otherwise $2 per withdrawal)
- “Cash Boost” automatically applies discounts to purchases at select retailers to help users save money (only one boost can be active at a time)
- The app includes features that allow users to invest in stocks, buy and sell bitcoins
Cons
- There is a 3% fee when using a linked credit card as a payment method
- There is a 1.5% fee for instant cashout (to distribute funds immediately to your bank account with no waiting time).
- Cash App is not FDIC insured, despite its more sophisticated investment features.
Cash App is a financial platform offered through banking partners Lincoln Savings Bank and Sutton Bank. We also offer investment services through Cash App Investing LLC, a registered broker-dealer and a member of the Financial Industry Regulatory Authority (FINRA).
Cash App provides the following services and features:
- money transfer: Users can not only send and receive money, but also transfer money in their Cash App account to a linked bank account. Sending and receiving money is free. Standard transfers are also free and can take 1-3 business days to complete. Instant money transfer is also an option, but costs 0.50% to 1.75% of the amount sent, with a minimum fee of $0.25.
- Cash card: Cash App offers a free Visa debit card linked to the user’s Cash App balance. Cardholders can use their cash card at ATMs for $2 per withdrawal (unless direct deposit is set up) and for online and in-store purchases.
- Cash App Pay: Cash App also works as a payment method for direct purchases online or at Square Sellers and select merchants.
- discount: Cash cardholders have access to Boosts (instant discounts from participating retailers and restaurants). Only one boost can be active at a time, but you can change any number of boosts.
- direct deposit: Allows users to deposit payroll and tax returns into their Cash App accounts.
- Savings: The app allows users to put money into savings from a linked payment source or Cash App balance with no fees or minimum balance requirements. If you have an activated cash card, you can also set up savings roundup to automatically round up card transactions and add change to your savings balance. Note that unlike traditional savings accounts and high-yield savings accounts, this savings feature does not accrue interest.
- investment: Cash App Investing allows users to buy stocks and ETFs using money in their Cash App account (or a linked debit card if they don’t have enough funds for the purchase). Users can also sell stocks and ETFs they own on Cash App and add the sale amount to the app balance. The platform has no fees.
- Bitcoin: Another service offered by Cash App is buying, selling, sending and receiving Bitcoin. Sending and receiving bitcoins is free, but the platform can charge fees for buying and selling. In addition, users who have set up direct deposit can choose to contribute a portion of their salary in Bitcoin.
How to use cash app
You will be asked to create a username. Each individual and business that uses Cash App has a username that they use to send or request funds. Alternatively, you can search by name, email his address, or phone number.
How to add money to Cash App
If you need to add funds to your Cash App balance (for example, to make a purchase with a bank card), go to the “Money” tab on the app’s home screen. Press “Add Cash” and follow the prompts to select the amount to deposit.
Is Cash App Safe?
Cash App is a secure platform and uses encryption and fraud detection technology. This means that all information you send is encrypted and securely shared with Cash App’s servers, even if you’re using the app on public Wi-Fi. Additionally, the app uses additional safety features such as his PIN entry, Face ID, and Touch ID.
If you have a cash card and have money stored in your Cash App account, the funds are: Up to $250,000 per customer covered by the Federal Deposit Insurance Corporation (FDIC). Your investment balance is also protected by the Securities Investor Protection Corporation (SIPC).
Even with all security measures in place, it’s always best to stay vigilant to avoid fraud. CashApp payments are instant and generally cannot be canceled or reversed. Send funds only to individuals and businesses you trust and double-check all information before sending to make sure it goes to the right person. Finally, do not share personal information such as sign-in codes or bank account details with anyone, even if they claim to work for that platform. Cash App never asks for this information, downloads an app for remote access, or completes any type of transaction or payment.
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Is Cash App Worth It?
With so many features, Cash App has a lot of features. From sending and receiving money to accessing discounts and buying Bitcoin, this is a powerful financial platform.In addition, CNBC Select makes it The best payment app for budding investors providing commission-free investment services.
That said, there are also competitors.
Venmo, for example, also offers tons of features. In addition to sending and receiving payments, you can get debit and Venmo credit cards and buy cryptocurrencies. And of course, you can also add messages and emojis to your payments. These messages will appear in your friends’ home feeds (unless you choose to keep them private), adding to the social aspect of the app.
Venmo
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Fee
There are no fees for sending money from a linked bank account, debit card, or Venmo account.There is a 3% fee for transfers using a linked credit card
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transfer speed
Instant transfers to your Venmo balance.1-3 business days for direct deposit (free) or instant transfer to your bank account with a 1% fee (up to $10)
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Standout features
Links to popular apps. Social features (including stickers and emojis) to interact with your friends’ payments. Venmo debit and credit cards
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Link to account
Yes, bank cards and credit cards
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availability
Only available in the US and compatible only with US-based bank accounts and phone numbers. Compatible with iOS and Android
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Security function
Multi-factor authentication when signing in.QR code reader to ensure you are linking to the correct user account before sending money
If you’re not looking for extra features and want a money transfer app dedicated to sending money to family and close friends in the US, Zelle is another option. Instant bank-to-bank transfers are often possible within the bank’s mobile app, with no fees.
Zell
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Fee
Free (but check with your bank for additional charges)
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transfer speed
Instant: If the recipient’s email address or US mobile number is already registered with Zelle, transactions are typically done in minutes.
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Standout features
No need to download additional apps. Zelle is already included in most mobile banking apps
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Link to account
Yes, to a US bank account
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availability
iOS and Android.Must have a US bank account linked to an email address or compatible US phone number
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Security function
Zelle app uses authentication and monitoring features to make payments safer
Conclusion
Cash App is feature-rich, making it an excellent choice for individuals and businesses. It’s easy to use and generally safe, but you should be careful to avoid scams. When signing up for Cash App, be sure to check the potential fees and transaction limits that the platform may impose.
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CNBC Select’s mission is to provide quality service journalism and comprehensive consumer advice to help readers make informed decisions about their money. All Payment Apps articles are based on rigorous reporting by our team of expert writers and editors with extensive knowledge of payment and money transfer apps.. CNBC Select earns commissions from our affiliate partners on many of our offers and links, but we create all content without input from our commercial team or outside third parties and adhere to journalistic standards and ethics. We are proud oflook For more information on how to select the best products, please see our methodology.
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Editor’s note: The opinions, analyses, reviews or recommendations expressed in this article are those of Select Editorial Staff alone and have not been reviewed, approved or otherwise endorsed by any third party.
(Tag Translation) Personal Finance