With a massive user base and growing popularity, Cash App has become one of the go-to platforms for transferring money.
However, not everyone’s experience with the app has been smooth sailing if we consider its 1.2/5 score on TrustPilot.
In our comprehensive Cash App review, we’ll delve into the nitty-gritty details to give you a complete understanding of why so many individuals choose Cash App for their money transfers. But we won’t shy away from the critical side either. We’ll examine the pros and cons, safety measures, fees, and even real customer reviews, painting a full picture of this cash app’s performance.
What is Cash App and how is it different
Cash App is a mobile payment platform that allows users to send and receive money, buy and sell stocks, and even borrow money. The app, developed by Square, Inc., is available for free on both the App Store and Google Play store.
Since its launch in 2013, Cash App has become an increasingly popular money transfer service.
Cash App differs from its competitors in several ways which include the following:
- Simplicity: Cash App has a simple and intuitive user interface, making it easy for anyone to use.
- Investment options: Cash App offers investment options, such as the ability to purchase stocks and Bitcoin, which are not available on all money transfer apps.
- Direct deposit: Cash App supports direct deposit, allowing users to receive their paychecks directly into their Cash App account.
- Virtual debit card: Cash App also provides users with a virtual debit card, which can be used to make purchases from merchants that accept debit cards.
- Cash App Borrow: Cash App allows users to access short-term loans with competitive interest rates.
- Limits: Users are limited to sending $250 within seven days and can receive $1,000 within 30 days without verifying their identity. These limits can be increased after verifying your identity.
Pros and Cons of Cash App
Pros:
- Invest in stocks without paying any commission fees.
- Quick and hassle-free transfers.
- Zero fees for peer-to-peer transfers.
- Provides options to buy and sell Bitcoin.
- Users with a Cash Card are covered by the FDIC for cover up to $250,000.
Cons:
- A 3% fee applies when using a credit card for transactions.
- Only available in the US and the UK
- No additional fees when transferring funds between the UK and the US (only the mid-market exchange rate for international transfers is applied).
- Instant deposits come with a 1% fee based on the deposit amount.
- Balances for investments and Bitcoin are not covered by the FDIC.
Who is Cash App for
- Individuals who are looking for a fast, simple, and convenient way to manage their money and make mobile payments.
- People who want to buy and sell stocks commission-free.
- Investors that are interested in buying and selling Bitcoin.
- Those who want a user-friendly mobile app for money management.
- People who are looking for quick small loans.
People in the US and the UK who want to send and receive money to each other would benefit the most from Cash App due to the competitive exchange rates and zero fees.
How does Cash App work
Cash App works by allowing users to send and receive money, buy and sell stocks, and invest in Bitcoin all from their mobile phones. Here’s how it works:
- Create an account: To start using Cash App, you’ll need to download the app and create an account. This process involves providing information to verify your identity and linking a bank account or credit card.
- Send and receive money: Cash App allows you to send money to other Cash App users, as well as receive payments from them. All you need is the recipient’s email address or phone number.
- Buy and sell stocks: The app enables you to buy and sell stocks with no commission fees. You can browse the available stocks directly from the app.
- Invest in Bitcoin: In addition to stocks, Cash App also allows you to buy and sell Bitcoin. You can keep track of your Bitcoin investments and make trades all from the app.
- Payments and transactions: Payments made with Cash App are processed quickly, usually within minutes. However, the exact time can vary depending on the amount and the bank you’re using. There are no charges for peer-to-peer transfers.
Is Cash App safe and legit?
Cash App is a legitimate and secure way to manage your money and make transactions. The company uses several layers of security, including encryption and fraud detection to protect its users’ information and financial data.
Additionally, Cash App is regulated by the Financial Crimes Enforcement Network (FinCEN) and is a licensed payment provider. This means that the company is subject to federal regulations and must adhere to strict financial standards to protect its users’ funds.
Cash App takes security seriously and has implemented several measures to protect its users’ information and financial data. These measures include:
- Encryption: Cash App uses state-of-the-art encryption to secure all transactions and protect users’ personal and financial information. This means that sensitive data is scrambled and only decrypted when it reaches its intended recipient.
- Fraud detection: The app uses advanced algorithms and machine learning to detect and prevent fraud. This includes monitoring for unusual activity on accounts and flagging any suspicious transactions for review.
- Two-factor authentication: Users have the option to enable two-factor authentication to add an extra layer of security to their accounts. This requires them to enter a code sent to their phone in addition to their password to log in.
- FDIC insurance: The balance in your Cash App account is protected by the FDIC for users with a Cash Card. This protects your money up to $250,000 if your bank goes bust.
What are Cash App’s fees (for US customers)
Cash App charges a fee for certain types of transactions. The fees are as follows:
- Standard transfer fee: Sending money from a linked bank account or a debit card is free on Cash App.
- Credit card transfer fee: If you use a credit card to send money, Cash App charges a 3% fee for the transaction amount.
- Instant deposit fee: If you choose the instant deposit option, Cash App charges a 1% fee (with a minimum fee of $0.25) of the deposit amount. This allows you to receive your funds immediately instead of waiting for the standard transfer time.
- Bitcoin transaction fee: If you buy or sell bitcoin on Cash App, you’ll be charged a fee based on the transaction size and market conditions.
- Business Account fee: Each time you receive a payment to your business account through Cash App, A processing fee of 2.75% is automatically charged for each transaction received to a business account.
What are Cash App’s international fees?
The fees for Cash App transactions are generally the same for both US and UK customers, making it a cost-effective solution for cross-border payments. However, it’s important to note that fees can change from time to time, or for specific types of transactions, so it’s always best to consult the Cash App website or in-app fee information for the most accurate and up-to-date information.
See our article Cash App Europe Alternative and Can I Use Cash App Card Internationally?
Cash App’s customer reviews
Cash App has received millions of reviews, with excellent ratings on some platforms and more negative reviews on other platforms. Upon examining various review platforms, we can see that Cash App has a mixed reputation among its users.
The Trustpilot rating is 1.2/5 based on a total of 3,649 reviews. The majority of these reviews involve customers complaining about the customer support and complicated app function offered by the platform.
On the contrary, Cash App has roughly 2.1 million reviews and a rating of 4.7/5 on Google Playstore. With a 4.8/5 rating, Cash App has the highest rating on the Apple store with 4.1 million reviews.
Cash App alternatives
If you’re unsure about whether Cash App is the best money transfer service for you, check out some of the alternative options below:
PayPal – One of the most popular online payment platforms, offering money transfer, bill payments, and purchase options in over 200 countries.
See our Cash App vs. PayPal comparison.
Venmo – A mobile payment app that allows users to transfer money to friends and family quickly and easily.
Zelle – A fast and secure mobile payment service that allows users to send and receive money directly from their bank accounts.
Wise – A platform that allows users to transfer money internationally at low fees and competitive exchange rates.
Robinhood – A stock trading app that also offers a cash management feature, allowing users to transfer money and receive a debit card.
Revolut – A digital bank that offers international money transfers, spending, and other financial services.
These are just a few examples of the alternative services available to Cash App. The best option depends on your specific needs.
See our article Apps Like Cash App.
Verdict
Cash App is a well-established platform for mobile money transfers. The majority of users praise the exchange rate, fast transfer times, and overall reliability of the service.
The customer reviews are mixed with one of the main complaints surrounding poor customer service. This is a factor worth considering as many people prefer better support from money transfer services when dealing with any issues.
Furthermore, Cash App is only available for UK and US users. This excludes a large number of the population from sending and receiving money internationally. US and UK customers benefit the most from zero fees and competitive exchange rates.
FAQ
Does the Cash app work internationally?
Cash App has a limited reach, being accessible only in the US and the UK. The platform facilitates transfers exclusively between US and UK bank accounts, requiring both the sender and the recipient to have a valid bank account in either of these countries. This means that international transfers are not possible through Cash App.
Is the Cash app better than Venmo?
However, here are some key differences between the two platforms:
Cash App:
– Offers additional features such as the ability to buy and sell stocks and cryptocurrencies
– Provides a free debit card linked to the user’s Cash App balance, which can be used to make purchases or withdraw cash from ATMs
– Has a more robust privacy policy, offering greater control over who can see transactions and user information
Venmo:
– Has a more established brand and user base, with a wider network of users for easier transactions with friends and family
– Offers a social feed that allows users to see public transactions made by their friends, leading to a more social and fun experience
– Has a simpler user interface and is more focused on person-to-person payments
In summary, Cash App offers a more comprehensive financial platform, while Venmo has a more user-friendly approach and social component.
Can you Cash app someone in another country?
Cash App does not currently support international transfers between countries other than the US and the UK. If you need to send money to someone in another country, you may need to consider alternative money transfer services that support international transfers.
Does the Cash app convert currency?
Yes, Cash App does convert currency for transfers between the UK and the US.
Can you use Cash App everywhere?
Cash App is widely accepted as a form of payment wherever Visa or cash cards are accepted. However, it can’t be used for transactions outside of the US or the UK.