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 worksWith our complete guide, you will learn how to send and receive money through this valuable tool.
Owned by Square (run 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 you in detail how Cash App works.
- 1 What is Cash App?
- 2 How does Cash App work?
- 3 Are there limits to the amount you can send or receive through the Cash App?
- 4 How much does Cash App cost?
- 5 How quickly does the other party receive the money sent through the Cash App?
- 6 Are Cash App transactions public?
- 7 Is the money in the Cash App account FDIC insured?
- 8 What if I send the wrong amount or send it to the wrong person?
- 9 Does Cash App offer its own cards?
- 10 Is money sent through the Cash App protected against loss, fraud and theft?
- 11 Can Cash App users earn credit card rewards and loyalty points?
What is Cash App?
Cash App is a peer-to-peer payment application that allows people to send and receive money to their friends and family. You can also use the linked debit card (optional) to buy or access an ATM.
The study of Consumer reports on peer-to-peer applications it gave it a 64 on a scale of 1 to 100 (100 being the perfect score). It got good marks for data security, customer support, and accessibility (on a range of devices and for those without bank accounts). But the evaluators considered that the application could improve in terms of authentication of payments and privacy.
The Cash application is available to users of iPhone Y Android
How does Cash App work?
Cash App is a peer-to-peer payment application, 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 your phone number. Or you can create a unique identifier known as $ 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 the Cash App balance directly from it. The application also allows users to receive direct deposits (such as a paycheck) to 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.
Also, 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 Cash App cost?
Sending, receiving and transferring money is free.
And although the Cash App does not charge fees for the use of ATMs, you will be responsible for the fees charged by the ATM networks.
How quickly does the other party receive the money sent through the Cash App?
Money can be sent and received instantly through the application, depending on the site.
Adding or depositing money to your Cash App account can take from one to three days, depending on your bank, the site advises.
You can also opt for instant deposits to your bank account, which are immediate, But they come with a 1.5 percent fee, according to a company representative.
Direct deposits can take 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 are actually quite transparent about data security and privacy, but not as private as the best”, says Christina Tetreault, senior policy advisor for 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?
That money is probably not going to get back. The Cash App site states that “payments are instantaneous and normally cannot be canceled”. Directs users to “look at your activity feed to see if the payment receipt shows a cancellation option.” If it does not show it, the option it gives you is to use the application to ask the recipient to return the money.
And while you can request help through the app or the company’s website, you cannot 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, says Tetreault.
«There are a lot of good answers to frequently asked questions, but for people seeking personal attention, this might not be so easy. “, He says.
And that problem isn’t unique to Cash App, he says.
With any service that involves your money, “consumers should have plenty of 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 enter the new prepaid card regulation, which went into effect on April 1, says Tetreault.
That means if you have unauthorized charges and you 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 someone to send money (to the wrong person, in the wrong amount, or to a recipient for merchandise that is not agreed), you are not protected, says Tetreault.
Can Cash App users earn credit card rewards and loyalty points?
Cash App has a rewards program called “Boost”. Allows you to link the 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 coffee shops.
WARNING. Use these services (any peer-to-peer service) 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 a 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, chief technology officer for 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 about money, make sure you also use optional security features and good IT practices. ‘
If you can’t access your private network, skip the public Wi-Fi, says Jackson, whose company collaborated on the Consumer Reports study of peer-to-peer payment offers.
Tetreault echoes the recommendation to enable all the security options available in the application and on your device.
“We recommend activating the security features so that there is 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 banking customer when evaluating, selecting, and using peer-to-peer payment services, says Tetreault.
“People trust the system [basado en las redes sociales] because they use it with people they know and trust », He says. Adopt the same strategy if you are sending money.
Says Tetreault, “Use these services (any peer to peer service) only with people you know and trust.”