Cash App: The Advantages & Disadvantages You Need To Know About

In an era, where the digital transaction is preferred over the physical exchange of currency, there will always be a need for better P2P payment apps like Cash App.

With progressing technology, such easy-to-use apps have notched unmatched demand in the fintech space, making them one of the trustworthy and go-to payment options for many clients. 

Although there are apps like Venmo and Paypal to promote digital payment, a void space was always kept aside for an innovative app that would fulfill the habitual and ordinary needs of a user that include easy transfer and investment of money in a better way.

Therefore, financial platforms like Cash App, have high potency in the current generation. 

What Is A Cash App?

Cash App is a mobile phone app that provides money transfer services to users in the United States and the United Kingdom. It is a P2P financial servicing platform which is a lot different from a bank. 

The series of services offered by Cash App range from instant sending and receiving cash, to storing them. The app has also enabled users to file taxes through its inventive Taxes feature.

Additionally, the company has managed to keep an option to purchase Bitcoin and stock through its complicated yet simple-looking platform. However, the app can only be used to transfer cash within the country. 

Although it is not a bank, it is also not less than a bank. It provides different banking services through its multiple bank partners.

It further offers investing services with the assistance of Cash App Investing LLC and the prevailing balance in your account is automatically insured through partner banks by the Federal Deposit Insurance.

With this App, users can even invest as little as $1, which is made possible through fractional shares. 

Lately, this app has outshined several other mobile payment apps, becoming a one-stop shop for all financial needs. 

Who Owns Cash App?

Cash App is owned by Block. Inc, an American multinational technology conglomerate. Initially, the application was released under the name “Square Cash,” when it was launched in 2013. Co-founded by the CEO of Square, Jack Dorsen, the app was named after the parent company Square Inc.

Their primary strategy was to focus on peer-to-peer payment services which would enable users to pay through their individual emails. 

In 2015, the Cash App was opened to businesses in the United States, encouraging organizations to create a distinctive username for the smooth running of transactions and it was termed “$cashtag.”

A 1.5% fee was initially charged to businesses for each transaction they made. However, services were free of charge when the translations were made by family members or friends. 

Eventually, Bitcoin and stock trading were added in the years 2018 and 2019 respectively. After combining a free self-doable tax-filing service, Square made rollout of the Cash App on Nov. 3, 2021.

The app required authorization from parents for users who were below 18 and it prohibited services like Bitcoin and stock purchases exclusively for them. Therefore, the app is individual for kids and adults. 

How Does The Cash App Work?

As aforesaid, the app offers a plethora of financial services to its users. But in order to make the most out of it, you must download the mobile app. It is available both in Google Play Store and App Store. 

After the app is installed, you are required to sign in with appropriate information, and once done, you will be directed to the home page that has around seven different tabs, each for various services like payments, debit cards, banking, Bitcoin, and more. 

1. Sending and Receiving money

Once your account is ready, you will be asked to link an existing bank account to the app account. Now, you have a reliable payment source connected to your account which will enable money transactions through the app. In order to initiate a payment, you can enter the amount in dollars and press “Pay” or “Request.”

You can search for either businesses or individuals by their respective $cashtag. If not, you can also search them by their email address, phone number, or their name. 

2. Transferring money to the linked bank account 

Your received payments can either be kept in the Cash App balance or you can choose to transfer them to the linked bank account, which is subject to an extra charge. But you can also opt for a free transfer which usually takes one or two business days to complete. 

3. Add money 

Adding money to the app account is the easiest of all mentioned above. You need to open the ‘banking’ tab and tap “Add Cash,” type the amount, and re-tap “Add.”

How Is The Cash App Different From Venmo?

With the rise of cryptocurrency and financial apps, it’s obvious that many are rooting for digital currencies. But there are still numerous payment apps running in the background that are capable of competing with the Cash App, particularly Venmo. 

Cash App and Venmo are two popular P2P mobile payment apps that offer similar services like sending and receiving money with the help of a smartphone.

You just have to give it multiple taps and you will be easily directed to the payment. But while these widely used apps function similarly to one another, there are also noticeable differences to consider.

Whether you choose Cash App or Venmo, depends on your needs. They both offer beyond the basic features and here is an overview of Cash App and Venmo that will give a better idea of how they are different. 

Cash App vs. Venmo 

Which Is Better, Zelle Or Cash App?

With nothing more than a few clicks, both Cash App users and Zelle users can quickly give and take money, since the two are competing mobile payment apps. While Cash App and Zelle are flexible when it is to financial transactions, Cash App is much more popular and widely accepted than the latter.

That is, Cash App has 30 million active users whereas, Zelle has barely 15 million users. But it is commendable that they are both subject to federal reporting requirements, meaning they will report any transaction higher than $600 made within the app to the IRS. 

With so much in common, there is still confusion about which is better: Cash App or Zelle?  See why;

Side-by-side comparison Of Zelle And Cash App 

Probably at this point, anyone can get confused as the choice varies based on the user’s needs. If purchasing Bitcoin is a great deal for you, then the App would suit your requirement and most likely, the choices cannot be the same. 

Advantages & Disadvantages Of Cash App

Advantages 

Since the world is transforming into a cashless society, mobile payment apps like Cash App will rule over traditional currency exchanges. Now, let’s head into the advantages of the app which has influenced over 30 million users to choose the app. 

• Promotes quick and easy P2P transactions 
• No cost to download 
• Direct deposit capabilities and availability of debit cards.
• Users can engage in the purchase of Bitcoin and stocks.
• Free tax filing through the distinctive app feature called ‘Cash App Taxes.’
• Available for both iOS and Android users. 

While there are numerous pros to the popular mobile payment app, there must also be potential cons to it. 

Disadvantages

• Transaction limits until the user is verified by the app.
• 3% would be charged for sending money through a credit card.
• $2 per ATM transaction.
• Authorized transactions cannot be reversed. 

How To Deposit A Check On A Cash App?

Luckily, the app has simplified the process of depositing checks and it is easier now. But before going to the actual procedure, you are supposed to check whether your check meets all the mandatory requirements, like;

• The check is shared by someone who is an authorized user of Cash App or made out to you jointly by a delegated person. 
• Ensure the check is payable in dollars. 
• Examine whether the check exceeds your deposit limit. 
• Make sure the check hasn’t expired
• Re-check if it is properly signed by the company or the person issuing it. 
• Look for the status of the check and whether it is altered or not. 

Now, let’s have a quick rundown on the steps of depositing a check. 

1. Open the Cash App. 
2. Tap the bank icon provided at the bottom left corner of the home page.
3. Tap “Checks,” an option that will let you scan the paper checks.
4. Enter the amount that the check is in. 
5. Confirm the check matches the given example on the mobile screen and tap “Confirm front of the check.”
6. Confirm the back of the issued check by clicking on the “Confirm back of the check” option. 
7. Press the tab that reads “Take Photo” next to “Front” to open your mobile camera to scan your check.
8. Use the given grids on the screen to scan the check properly. 
9. Press the tab that reads “Take Photo” next to “Back” to open your mobile camera to scan your check.
10. Select the “Submit” option which will lead you to certain disclaimers about your check. 

How To Borrow Money From Cash App?

Cash App Borrow is a distinct feature that is not at all accessible to every app user. Follow these guidelines to examine whether you have access to it or not. 

1. Open the mobile payment app.
2. Tap on the ‘account balance’ in the lower left corner. If you have zero balance in your app account, then this icon should look like a house. 
3. Now you must have reached the banking section, where you can look for a blue arrow icon that reads, ‘Borrow up to…”
4. If there is no such arrow on your screen, then you probably do not have access.
5. Tap “Unlock” to continue with the borrowing process.
6. Depending on your regular deposits, the app will indicate the minimum to maximum loan limit that you can borrow. 
7. You will be directed to a disclaimer page “Borrow Loan Agreement” which you can read and accept if you are still willing to take the loan. 

Should You Borrow From A Cash App?

Borrowing money is never a good option. But if you are in a desperate situation, then you can consider borrowing it from someone nearby. The app should be your lender of last resort.  

However, it doesn’t offer a sumptuous amount, instead, it has a loan limit of $200, an amount that wouldn’t be too hard for you to arrange. But if you are left with no other option, then Cash App could be for you. 

When you borrow the full amount of $200, it will cost you an extra $10, which is 5% and that does not sound weird in exchange for the satisfaction you get with an instant $200 in your hand. 

How To Unlock Borrow On Cash App?

If there is no blue arrow symbol on your screen, then it indicates that you are not a regular user of the app.

In other words, you can unlock Cash App Borrow only if you make regulation deposits on the app. The more you deposit, the higher your chances are to become qualified to borrow via Cash App borrow. 

If not a regular deposit, then another way to unlock Borrow on the app is by depositing at least $1,000 each month to your Cash App Account. 

Alternatives To Borrowing From Cash App

In case you are exhausted with the rules and regulations put forward by the App to borrow a little sum of $200, with 5% interest, then it’s high time for you to know that there are alternatives to borrowing from the App. 

1. Albert

Albert is a fintech company that offers cash when you direct deposit your paycheck.

Interestingly, it provides an advance of up to $250 on your upcoming paycheck. You should be using their Genius Account which functions on a “pay what is fair” principle with zero subscription fees.  

Once you receive a direct deposit of at least $500 and you spend $200 per 30 days for the next 90 days with your Albert debit card on the purchase of goods and services, then you get a bonus of $150. 

2. Possible Finance 

It is much like a traditional lender that provides a loan amount to the borrower with no fixed monthly fee. It is a better option if you have bad credit. 

The platform lets you take a loan of at least $500 in exchange for interest rates that vary from 150% to 200% APR.

3. Cleo 

Unlike any other apps, Cleo is cent percent free to use and the personal finance app will provide you with frequent suggestions to improve your finances. 

If you are a first-timer, then you will only get a loan amount of $20 to $70. But after you repay that, you can easily claim $100.

What Is A Cash Card On A Cash App?

Cash Card is a bonus feature that a Cash App user can enjoy in the form of a Visa debit card which can be used to make online or in-store payments for goods and services. However, the amount will be debited from the Cash App balance. 

You can change to a Cash Card user anytime you so prefer by adding it to Apple Pay or Google Pay. 

The transition limits for a Cash Card are as follows;

• $7,000 per day 
• $10,000 per week
• $15,000 per month 

The following are the timings of these limits;

• Daily limit: 6 pm CST
• Weekly limit: 6 pm CST every Saturday
• Monthly limit: 6 pm CST on the last day of the month. 

These limits should be considered while using both online and in-store transactions. ATM withdrawals are also subject to this.

But what makes a Cash Card different from all is that you can customize the design and color of your card, making it stand out from others. Further, you can block merchants from charging it as well. 

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How To Access Cash App Login Page URL?

Here are the following steps to access the login page.

1. Open Cash App
2. Click on “Login”
3. Enter your email address/phone number and password to log on to your app account.
4. If you are a new user, go to the create an account page and enter your email/phone number.
5. Then the app will give a secret code via email/text – enter it.

For more details, click on the Cash App Login.

What Is Boost On Your Cash Card?

Boosting your Cash Card will let you save money instantly when you use them to pay at restaurants, cafes, or any other stores. 

Follow these steps to Boost your Cash Card

1. Open Cash App
2. On the home screen, tap the “Cash Card” tab.
3. Click “Add Boost.’
4. Click on a “Boost.”
5. Make use of your Boost. 

But if you still didn’t receive a discount even after applying the Boost, then you can submit the payment for the examination. 

If you want to learn more about a specific Boost, then you should, 

1. Click the “Cash Card’ tab 
2. Click on “Save with Boost”
3. Click on the specific Boost that you want clarifications on

Investing In Cash App

The Cash App Investing accounts are individual brokerage accounts with which you can buy or sell stocks with no commission fees.    

Unfortunately, Cash App Investing facilities are only available to US residents. Plus, you must be at least 18 to be eligible for it. 

If you are qualified, then you must provide the following:

• Full name
• DOB
• US residential address
• Social Security number 
• Employment status- if employed, then provide the name of the employer

These details are required to verify the user’s identity to comply with the applicable regulations. 

Buying And Selling Bitcoin On Cash App

Bitcoin is a kind of cryptocurrency and its purchase requires a balance in your app account. Follow the steps to purchase Bitcoin on the App:

1. Open Cash App
2. Tap the ‘Bitcoin” tab displayed on the home screen
3.  Tap ‘Buy Bitcoin.’
4. Select or type an amount
5. Enter your security pin and tap ‘Confirm.’

Now if you want to sell Bitcoins then, 

1. Open Cash App
2. Tap the ‘Bitcoin’ tab that appears on the home screen
3. Select ‘Sell.’
4. Select or type an amount
5. Enter your security pin and tap ‘Confirm.’

You can also opt for Custom Purchase Orders on the app as it allows you to automatically sell or buy Bitcoin when the price hits the selected amount. 

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Cash App: FAQ

1. Is it safe to use a Cash App?

It is apparently safe to use as it is equipped with fraud detection technology to ensure your money is secure. Also, information is sent to servers securely in order to prevent leaking of them.

2. Is a debit card required for the Cash App?

No, you don’t need a debit card from the app. You can receive money from any App user even if you do not have a debit or credit card. Instead, you might require an existing email address and a phone number. 

3. Can a Cash App be used without a bank account?

You can use the app without linking a bank account but by using routing numbers and a Cash App account. With this, you can pay tax returns or deposit paychecks to your App balance. 

4. Does the Cash App charge a fee?

It provides both instant deposits and standard deposits. While standard deposits are free and can be made successfully in 1-2 business days, the former charges a fee from 0.5% to 1.75%. However, like their name, instant deposits arrive instantly on your debit card.