How Cash App works: Complete guide to send and receive money

You probably know the Cash App, it used to be called “Square Cash” but they changed the name. Today we will explain how Cash App works, with our complete guide you will learn to send and receive money through this valuable tool.

Owned by Square (led by Twitter founder Jack Dorsey), the app allows consumers to send and receive money, link to an existing bank account, or spend money directly from the Cash App with a debit card. Users can also set up direct deposits to their Cash App account.

You want to know more? Next, we explain in detail how Cash App works.

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What is CashApp?

Cash App is a peer-to-peer payment app that allows people to send and receive money to their friends and family. You can also use the linked debit card (optional) to make purchases or access an ATM.

Consumer Reports study of peer-to-peer payment apps gave it a 64 on a scale of 1 to 100 (with 100 being the perfect score). It got good marks for data security, customer support, and accessibility (across a range of devices and for those without bank accounts). But testers felt the app could do better in terms of payment authentication and privacy.

The Cash app is available for iPhone and Android users

How does Cash App work?

Cash App is a peer-to-peer payment app, so you can use it to send, receive and request money. Instead of an account number, you are known online by your email address or phone number. Or you can create a unique identifier known as a $Cashtag. If you receive money, it goes to your Cash App account. Or you can link the Cash App to an existing bank account and use it to transfer money to and from the Cash App account. You can also send money from a debit card and spend your Cash App balance directly from it. The app also allows users to receive direct deposits (such as a paycheck ) into their accounts.

WARNING: You must be at least 18 years old to open an account. And US users can only make payments to US-based recipients, according to a company spokesperson. UK residents can use the Cash App to send and receive money within the UK.

Are there limits to the amount you can send or receive through the Cash App?

Users can send “up to $250 in a seven-day period and receive up to $1,000 in a 30-day period, ” according to the Cash App website.

Once you’ve verified your account by giving information like your name, date of birth, etc., those limits are raised, according to a Cash App representative.

Plus, if you have a Cash App debit card, you can use ATMs to withdraw up to $250 at a time; $1,000 in a seven-day period and $1,250 in a 30-day period. And you can also get cash at the register, if the merchant allows it.

How much does CashApp cost?

Sending, receiving and transferring money is free.

And while the Cash App does not charge ATM fees, you will be responsible for any fees charged by ATM networks.

How quickly does the other party receive the money sent through Cash App?

Money can be sent and received instantly through the app, according to the site.

Adding or depositing money to your Cash App account can take one to three days, depending on your bank, the site reports.

You can also opt for instant deposits to your bank account, which are immediate but come with a 1.5 percent fee, according to a company representative.

Direct deposits can take anywhere from one to three days, depending on the sender’s bank, the representative explained.

Are Cash App transactions public?

No. And the Consumer Reports study found that “they’re actually pretty transparent about data security and privacy, but not as private as the best of them,” says Christina Tetreault, senior policy adviser at Consumer Reports.

If you send money to the wrong person or for the wrong amount using the app, that money could be permanently gone.

Is the money in the Cash App account FDIC insured?

Not at this time, according to a company representative.

What if I send the wrong amount or send it to the wrong person?

It is likely that you will never get that money back. The Cash App site states that “Payments are instant and normally cannot be cancelled”. Direct users to “look at your activity feed to see if the payment receipt shows a cancellation option.” If it doesn’t show it, the option it gives you is to use the app to ask the recipient to return the money.

And while you can apply for help through the app or the company’s website, you can’t contact the company by phone or email, according to a Cash App representative.

The Consumer Reports study found that a large number of complaints about the Cash App concerned that aspect of the service, Tetreault says.

“There are plenty of good answers to frequently asked questions, but for people looking for personal attention, this might not be that easy”, he says.

And that problem isn’t unique to Cash App, he says.

With any service that involves your money, “consumers should have multiple and abundant ways to solve problems,” says Tetreault.

Does Cash App offer its own cards?

Yes. Once you sign up for an account, you can request a free debit card.

Cash App does not offer credit cards.

Is money sent through the Cash App protected against loss, fraud and theft?

The Cash App account and debit card will fall under the new prepaid card regulation, which went into effect on April 1, Tetreault says.

That means if you have unauthorized charges and report them within two days, your losses are limited to $50.

You can also temporarily disable the card if you’ve lost it, according to the company’s site.

But if you actually authorize money to be sent to someone — to the wrong person, in the wrong amount, or to a recipient for merchandise that isn’t what was agreed upon — you’re not protected, Tetreault says.

Can Cash App users earn credit card rewards and loyalty points?

Cash App has a rewards program called “Boost”. Allows you to link Cash App offers to your Cash App debit card . (You can select only one offer at a time).

When you make a purchase, the discount is automatically deducted from the price as a coupon. The card also offers a $1 discount for purchases at cafes.

WARNING. Use these services (any peer-to-peer services) only with people you know and trust.

Do I need additional security when using the Cash app?

Cash App allows you to add a PIN code or fingerprint identification to make payments. (The PIN will be the same as your Cash App debit card, if you have one, according to the company’s site.)

Patrick Jackson, CTO of online privacy company Disconnect, gives them high marks on security and encryption. “They require an additional level of security,” he says.

That said, since it’s all about money, make sure you’re also using optional security features and good computing practices.”

If you can’t access your private network, skip public Wi-Fi, says Jackson, whose company collaborated with the Consumer Reports study on peer-to-peer payment offerings.

Tetreault echoes the recommendation to enable all available security options in the app and on your device.

“We recommend turning on security features so there’s a layer of protection,” he says. It will also be a good decision to set alerts for transactions.

Also, while you’re still technically on social media, think like a bank customer when evaluating, selecting, and using peer-to-peer payment services, says Tetreault.

“People trust the [social media-based] system because they use it with people they know and trust,” he says. Take the same approach if you’re sending money.”

Says Tetreault, “Use these services (any peer to peer service) only with people you know and trust.”