Is Cash App legit?

In a nutshell

Cash App is a mobile app that allows you to send and receive money, in addition to buying stocks and bitcoin. It’s a legitimate financial app that is safe if you use it carefully.

• Cash App is FDIC-insured through their partner banks, Wells Fargo and Sutton Bank.
• If Cash App ever files for bankruptcy, your money is protected up to $250,000.
• Cash App has several security features that are designed to protect your account and your money.

What is Cash App?

‌Cash App is a financial services platform for sending and receiving money. It is free to use when sending or receiving money. International transactions are also free, and you can convert money in the app so you or your recipient receive funds in another currency. You can also use Cash App as a checking or savings account or use it to invest in stocks or bitcoin.

How Cash App works

While Cash App is a mobile-first operation, you can log into your account on a computer and access all your accounts. Once you have an account, there are a few different ways to use Cash App, including:

Transferring money

You can send or request money using someone’s unique $cashtag, or use their email or phone number. A $cashtag isn’t required to send or receive money; you can send money to someone who doesn’t use Cash App as long as you have their email or phone number. You don’t need to have funds in your Cash App account to send money if you have a linked bank account or card.

Banking

You can set up a bank account via Cash App and receive a Visa debit card — the Cash App card — that you can use wherever Visa is accepted. There’s no minimum balance requirement or overdraft fees. You can also set up direct deposits to go into your account the same way you would with any other bank account from other financial institutions.

Saving

You can also use Cash App as a savings account, utilizing it in the same way as a regular bank account. You’ll get a Cash App card, as well.

Investing

Through Cash App, you can buy and sell stocks, exchange-traded funds (ETFs) and bitcoin. There are no commission fees, and if you use Cash App as a bank account, you can set aside a portion of your direct deposit payments to go toward your bitcoin investments. There’s also a way to send a stock (or a portion of a stock) to someone else, just as you would if sending cash.

Taxes

You can now file your taxes through Cash App for free. You can also estimate your refund before filing to make sure you’re getting your maximum refund.

Is Cash App safe?

While paying through your phone is still relatively new, Cash App is secure and safe.

Cash App is FDIC-insured through their partner banks, Wells Fargo and Sutton Bank. If Cash App ever files for bankruptcy up to $250,000 of your money is protected. Cash App Investing is a member of the Securities Investor Protection Corporation (SIPC), which insures your investments up to $500,000.

Cash App has security features to verify your identity and transactions. For instance, you'll be notified any time you change your PIN or security settings. When sending money — or if you log in from a new device because you got a new phone and are opening the app for the first time — you’ll need to confirm some details to prove it’s you.

Is Cash App worth it?

Cash App might be worth exploring if you’re looking for a new bank with few fees and a user-friendly app.

You may want to try Cash App if:

• You want to digitally send and receive money from friends and family.
• You’re exploring new bank accounts and don’t mind an online-only institution.
• You want to start investing and don’t mind having your bank and investing accounts in the same place.
• You want to minimize fees while banking, receiving, sending or investing money.

You may want to skip Cash App if:

• You’re not ready to commit to an online-only bank.
• You already use other apps to send and receive money for free.
• Your investment accounts are already set up at an institution with few fees.

Cash App alternatives

Nearly 55 million people use Cash App every month. With its easy sign-up and user-friendly app, many people find that Cash App is a convenient way to send and receive money. But it’s not the only way you can do this.

Venmo

The functionality of Cash App was originally the same as Venmo; it was a way to send and receive money for free. Venmo also offers instant transfers, a debit card and moving money from linked bank accounts for free.

While Cash App has a monthly limit of $1,000 for both sending and receiving, Venmo allows you to send and receive less than $300 a week for unverified accounts — or less than $7,000 for your Venmo card, peer-to-peer payments and payments to authorized merchants.

Venmo is only available to people in the U.S. (while Cash App is available to those in the U.S. and the U.K.) and comes with a debit card, like Cash App. If you only want those features, Venmo works just as well as Cash App. But if you want additional features, like investing and tax help, you may want to explore Cash App.

Zelle

Unlike Venmo and Cash App, you don’t need to download a different app to use Zelle. You can use it straight through your current banking app. Like Cash App and Venmo, Zelle allows you to instantly send or request money from other people using their phone numbers or email addresses. It’s also free to use.

Zelle is not a separate financial institution, like Cash App and Venmo. Rather, it works with 2,000 other banking apps as an integration. You can send or receive money even if another person doesn’t have the same bank as you.

The AP Buyline roundup

Even though Cash App is a relatively new fintech app, it’s safe and secure to use. Up to $250,000 of your money is protected in the app, and you can add additional layers of protection, including two-factor authentication or adding a verification step every time you send money.

Frequently asked questions (FAQs)

Do I need a bank account to use Cash App?

No, you don’t need to link a bank account to download, sign up or use Cash App. If you use Cash App as a bank, you can set up direct deposit and add funds in other ways.

Which bank is Cash App through?

Cash App’s partner banks are Wells Fargo and Sutton Bank.

Does Cash App charge a fee?

There’s no fee to send or receive money, but there’s an instant deposit fee. There’s also an ATM fee. If you’re using Cash App for Business, there’s a 2.75% processing fee for all payments received.

Cash App doesn’t charge investing fees, but you might face some charges from regulatory agencies, such as trading and activity fees.

How long does it take to send money?

Money shows up instantly to the recipient when sending and receiving money through Cash App.

Will Cash App refund money if I get scammed?

While Cash App might refund money, it’s not always guaranteed that you’ll get your money back for unauthorized payments. It’s best to contact Cash App the moment you notice activity on your account that you didn’t authorize.