How to Send Money on Cash App: A Complete Guide
Cash App is the new kid on the block in the world of payment apps. This is your ultimate guide to transferring money using Cash App.
If you’ve been on any social media platforms recently, you’ve heard of Cash App. It’s the instant money transfer service that Gen Z loves. Transferring funds to your roommates or even sending money for your half of the check for a restaurant meal has never been so easy.
Now with banking and investing abilities, Cash App users are riding the new wave of modern banking. Here is what you need to know about this payment processing newbie.
Key Takeaways
- Sending funds through Cash App is a popular cash transfer option because of its simple user interface, rewards, and lack of fees charged for basic services.
- The app does not have FDIC insurance, meaning your money is not insured in case they go out of business.
- You can trade Bitcoin, a service many banking apps still do not provide.
- After opening your account using your debit card, you can link other payment methods like a credit card or crypto wallet.
Here’s What We’ll Cover:
How Does Cash App Differ from Traditional Bank Accounts?
How to Start Using Cash App Step-by-Step
What Is a Cash App?
Cash App is a peer payment app that behaves similarly to a bank account. You can use money from your Cash! App balance on your phone, tablet or smart device to transfer money and pay for items. Users can also buy and sell Bitcoin or invest in stocks with just a few taps using the money in their Cash App balance.
It is similar to personal accounts in that you can order a Cash App debit card called a “Cash Card.” You can make in-person purchases with Cash App charge or Cash App funds using your Cash Card anytime.
Keeping track of your purchases using your Cash App account balance and other payment services like PayPal is easy with financial tracking software like FreshBooks. You can transfer money online and automatically track expenses and receipts online.
How Does Cash App Differ from Traditional Bank Accounts?
Cash App is a unique personal finance app that lets you send and receive money or buy and sell bitcoin and stocks. It is an internet-based instant transfer service with plenty of unique aspects many users prefer to traditional banking, including:
1. There Are No Physical Locations
Cash App is an online money transfer app. A Cash App user can deposit money into their account using another bank account. You can access your account on multiple mobile devices, easily move money into and out of your linked bank account or make a Cash App payment.
2. Cash App Doesn’t Charge Fees (For Most Basic Services)
Cash App is free to use. There is no monthly charge, international transfer, or operating fees when using Cash App. However, there is a transaction fee of 3% to transfer money using your credit card as a payment source. This is not uncommon in the industry.
3. It Does Not Have FDIC Insurance
FDIC insurance protects your money in the event of a financial crisis. If Cash App were to go out of business tomorrow, the money you see as a balance in the app is not federally insured as it would be with the old school, brick-and-mortar banks.
4. You Can Trade Bitcoin
Though some banks do have an investment feature, few have ventured into cryptocurrency. Cash App’s ability to buy and sell Bitcoin using the app cements its status as forward-thinking and innovative.
5. There Are Limits
Debit card limits aren’t uncommon—especially on mobile money transfer apps. But Cash App and Cash Card’s limits are particularly low:
Cash App: You can send up to $1,000 per Week and receive up to $1,000 per month. You can add cash up to $2,500 and withdraw up to $25,000 per Week.
Cash Card: You can spend a maximum of $7,000 per transaction and per day.
Maximum $10,000 over a 7-day period
Maximum $15,000 over a 30-day period
Withdrawals are capped at $1,000 per day and $1,000 per week.
6. Boosts
Boosts are Cash App’s reward schemes. They have several merchant partners that offer exclusive discounts to Cash App users that pay with the Cash Card. Boost partners include Chick-Fil-A, Book Depository, Whole Food, Walgreens, USPS and many more.
7. You Can Link More Than One Payment Method
You open your account by linking a debit card, but you can also add other debit cards or payment methods. It is similar to PayPal or Venmo in that way. Cash App is the conduit for your payments.
If you have been using CashApp to pay your staff, keeping track of payments by integrating your payroll software and online payroll services into your business may be a good idea. Click here for a free trial now.
8. You Get A Bonus For Friends You Recruit
Cash App is using the good old virality technique to grow its user base. You get a $5 bonus per friend that joins the app on your referral.
How to Start Using Cash App Step-by-Step
Setting up a new Cash App account here is very easy. All you need to do is:
1. Download the app
2. Enter your email address or cell phone number
3. Connect an active debit card to connect your current bank account
4. Enter your full name
5. Choose a “$Cashtag,” which is unique to you
6. Confirm your address
Then you’re good to go! You can start by transferring funds into your account from your existing bank account or to hold in your mobile wallet.
Friends and customers can easily transfer money to you using your $Cashtag or email address.
How to Send Money on Cash App
1. Open Cash App on your smartphone
2. Enter the amount of money you want to send
3. Tap “pay” on the screen
4. Enter the recipient’s name, email address, $Cashtag or cellphone number.
If the payee doesn’t have a Cash App account, it will still notify them that you are sending payment. They have a limited time to claim the amount by opening an account. It’s a sneaky way of recruiting new members, but it works!
5. Enter a reference or what the payment was for
6. Tap “pay”
Benefits of Using Cash App
Using Cash App allows you to transfer money instantly while you are on the go without paying high fees. Mobile payments are simple and fast, making it an excellent option if you split the check at dinner or send your roommate your portion of the rent.
It offers a simple, safe interface with secure encrypted servers that keep transactions private. As long as you use common sense and are careful to who you send your money, Cash App is an excellent option for money transfers.
If you are considering accepting online payments for your small business that instantly sends professional receipts and connects to your bookkeeping software, consider FreshBooks to accept payments instead. Click here to get started.
Conclusion
Cash App is a no- to a low-cost, simple, and innovative way to send and request money and receive quick payments between friends, providing simple and secure money transfer options, stock trading, and Bitcoin purchase and sales. A Cash Card can be procured, with which you can make purchases from your Cash App balance.
Although some limitations to this app make it insufficient for replacing a regular bank account, it is a great additional piece you can add to your financial tool belt.
FAQs on How to Send Money on Cash App
Can I send money to Cash App without an account?
You need an account to send money to another person’s Cash App account, but the reverse is not true. You can send money to a person who doesn’t have an account from the app if you have their email address or phone number. Cash App will send them a notification to download the app.
How long does it take to receive money on Cash App?
A standard deposit from Cash App payments can take 1-3 business days, but instant deposits arrive instantly to your debit card. Instant deposits are subject to a minimum fee of $.25, ranging from 0.5% to 1.75% of the transfer amount.
What is the Cash App fee for $100?
You won’t need to pay a fee if you send $100 unless you use a credit card to transfer the money into an external bank account using the Cash App. In that case, you will pay a 3% fee ($3). If you want to deposit the funds into your account instantly, there will be a 1.75% fee of $1.75 to do so.
Why can’t I send money on Cash App without connecting a card?
You don’t need a debit card to send money with Cash App. You can make direct deposits to deposit paychecks, tax returns, and cash (at participating retailers) into your account, then use your balance to transfer funds, pay bills, buy stocks, or buy items with your Cash App card.
How safe is Cash App?
Cash App is very safe, using high-end modern encryption and fraud detection technology, ensuring your data (and your money) stays safe, even if you are on public Wi-Fi. Stay vigilant to avoid scams and enable all security settings for the best results.
About the author
Sandra Habiger is a Chartered Professional Accountant with a Bachelor’s Degree in Business Administration from the University of Washington. Sandra’s areas of focus include advising real estate agents, brokers, and investors. She supports small businesses in growing to their first six figures and beyond. Alongside her accounting practice, Sandra is a Money and Life Coach for women in business.
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