How Much Does Cash App Charge

If you want to pay a buddy for dinner or collect rent from your housemates, you need to be able to move money quickly. You may also use famous apps like Cash App, which are widely available. However, are these services always free or are there costs involved? How Much Does Cash App Charge?

In some circumstances, Cash App fees may apply. Let’s take a look at how these charges function and see whether you should look into other payment alternatives.

What is a Cash App?

Square, Inc. owns the Cash App mobile payment app. When it comes to money transfers, it’s a lot like Zelle and PayPal. Peer-to-peer (P2P) payment applications, such as Cash App, are the term for these sorts of apps.

Cash App claims to be a “banking” app, but it’s not. Financial services are provided through partnerships with banks through this financial platform. It also provides the ability to send and receive money; purchase bitcoin; invest money; get paychecks through direct deposit; and withdraw money from ATMs.

To use a Cash App, you don’t need any special training. Cash App allows you to send money to another user by email, phone number, or a $Cashtag number. You’ll need a Cash App account in order to receive funds.

Cash App’s debit card, the Cash App Card, is free and available to anybody over the age of 13 who has an active Cash App account. It’s possible to link your Cash App balance to this free debit card, making it compatible with a variety of popular digital wallets including Apple Pay and Google Pay. iOS and Android-compatible smartphones and tablets may use the Cash App mobile app.

How much does Cash App charge?

It is possible that you will be charged if you use Cash App in a certain way, but there are no account fees, maintenance costs, or yearly fees. Here are some costs to keep an eye on.

  • Sending money via Credit Card. 3%
  • Instant Transfer. 1.5% (minimum of 25 cents)
  • Investing. $0 from Cash App, though government agencies could charge fees for trades.
  • Buying/Selling Cryptocurrency. 2% to 3% is common, but it can vary
  • ATM withdrawals. $2 per withdrawal

After receiving $300 or more in qualified direct deposits each month, Cash App will reimburse up to $7 in fees per withdrawal up to three times every 31 days.

Fee for using a credit card to send money

Inquiring about the best method of paying for your pal using a credit card? This service is available through Cash App, but you’ll have to pay a service charge for it. It costs 3 percent of the total amount to send money using the Cash App using a credit card rather than your connected bank account or debit card.

Most P2P payment programs, such as Venmo, are quite similar to this. Cash App accepts credit cards from Visa, Mastercard, American Express, and Discover as a form of payment.

Fee to get money faster

Pay App allows you to cash out your money in two different ways. Deposits can be made to a linked bank account or to a linked debit card in a variety of ways.

There is no charge for using the regular deposit method, but it takes one to three business days to complete. Your debit card will be credited with the money immediately if you opt for the instant deposit option, which costs 1.5 percent (minimum of 25 cents).

Instead, you may obtain a Cash Card and use your Cash App balance without having to transfer funds from your bank or debit card.

Investing fees

To create an investment account on Cash App, there are no fees to be paid. It does not charge commissions, and there is no need to have a certain amount in your account at all times.

However, certain government organizations may levy fees for any transactions you make, which will be made clear to you prior to the trade being confirmed.

Bitcoin fees

When you purchase or sell bitcoins using the Cash App app, you’ll likely be charged a fee. It’s a good idea to enter in how many bitcoins you want to purchase or sell and see what the charge is, as it might fluctuate. Before you finalize the deal, the confirmation screen will show you any fees.

We tested a few trades (without completing them) and found that the cost frequently ranged from 2% to 3%.

ATM fees

The ATM withdrawal fee is $2 for Cash App. In addition, you may be charged a fee by the ATM itself for using a debit card from a different bank to withdraw money.

If you’d want to avoid paying ATM fees with Cash App, you’ll need to enroll in direct deposit and receive at least $300 in eligible monthly direct payments. If you achieve the monthly threshold, you will be reimbursed up to $7 per ATM withdrawal. Every 31 days, you are eligible for three of these refunds.

Bottom line

In the realms of investment and cryptocurrencies, Cash App has created a name for itself as a convenient method of exchanging money. However, if you’re not satisfied with Cash App’s offerings, there are alternative solutions to explore.

Remember that Cash App is a financial services provider, not a financial institution. As a result, a bank may be able to provide you with a greater selection of services. Check out our list of the best banks for additional information.

About the author: David Krug is the CEO & President of bankovia. He’s a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he’s not reading about cryptocurrencies, he’s researching the latest personal finance software.