Is Cash App Worth Using Money Transfer Service?

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Cash App

Tech companies have made it simpler to receive and send money instantly from a smartphone as more consumers accept the comfort of cashlessness. Most likely, you are aware of Cash App too. In contrast to conventional ways of sending money, this service has several additional features, such as buying and selling bitcoin, investing in stocks, and receiving exceptional savings through “cash boosts.”

If you need to become more familiar with this well-known mobile payment app, you should be aware of its benefits. Continue reading to discover more about Cash App’s features, advantages, and potential downsides.

Cash App At A Glance

Users can send and receive money via the peer-to-peer money transfer by using Cash App. If you wish to send or receive cash exceeding the limit, Cash App will ask you to verify your account with your complete name, date of birth, and address to maintain the security of Cash App

Users can send and receive money via the peer-to-peer money-transfer by using Cash App. You can use this service to split the cost of a trip, repay friends for a meal, transfer your part of the bills to your roommates, or send money to complete any other money-sending tasks you want to carry out with other Cash App users. 

Additionally, Cash App works like a bank account by providing users with a debit card they can use to make purchases called a “Cash Card.” Users of the app can also purchase and sell bitcoin and invest in stocks. 

Why Choose Cash App

1. Zero Fees For Key Services

Money transfers, inactivity fees, monthly fees, and fees for foreign transactions are all free with Cash App.

2. Optional Free Debit Card

Users of the “Cash Card” can make purchases and withdraw funds from their Cash App accounts. The Sutton Bank-issued card is specific to each user’s Cash App account. It is not linked to any other debit cards or personal bank accounts. You can also see other credit cards information. 

There are many credit cards available in United States through mail offer and get approved but Users of the “Cash Card” can make purchases and withdraw funds from their Cash App accounts. The Sutton Bank-issued card is specific to each user’s Cash App account. It is not linked to any other debit cards or personal bank accounts. You can also see other credit cards information. 

3. Free ATM Drawings On Setting Up Direct Deposit

If you are not setting up a direct deposit, using a Cash Card and an ATM costs you $2. 

4. Save Money By “Cash Boosts” When Using A Debit Card

With the Cash Card, users can select a specific “boost” on their account that entitles them to a discount when purchasing from a particular retailer, for instance, 10% off purchases with DoorDash. You can switch between boosts as much as you like, but only one boost can be active at once.

5. Cash Bonus For Sending The Referral Code

You will receive a $5 cash bonus for each friend who signs up for Cash App using the referral code you provide to them.

6. Investment Ability

Users of the Cash App can invest any money to purchase stock in particular companies. If you need more money to buy stocks using the money in your Cash App account, the rest will be deducted from your associated bank account.

7. Bitcoin Enabled

Users of the Cash App can buy and sell bitcoin. Still, two types of fees are involved: a service fee for each transaction and, based on market activity, an additional charge that is decided by price fluctuation across U.S. exchanges.

Things To Watch Out

1. No FDIC Insurance of Funds

Although Cash App functions somewhat like a bank, there is a distinct difference between the app and a legitimate, bank-chartered financial institution. Your money would be federally covered, often up to $250,000, under the terms of FDIC insurance if your bank were to go bankrupt unexpectedly. Cash of Cash App users is never transferred to or retained by Sutton Bank. This drawback is why FDIC does not cover these funds even if an FDIC-insured Sutton Bank provides the Cash Card.

2. Fee Upon Credit Card Usage

Cash App costs 3% of the transaction to send money with a linked credit card. It is a regular price compared to other money transfer applications; Venmo, for instance, levies a 3% fee when sending money using a linked credit card. Use your connected bank account or the money in your Cash App account to transfer cash to avoid this cost altogether.

3. Spending Limits On The Cash Card

Your Cash Card’s maximum spending limits are $7,000 per daily transaction and $10,000 per week. The most significant monthly expenditure is $25,000.

4. Withdrawal Limits On The Cash Card 

There is a $1,000 transaction limit, a $1,000 daily withdrawal limit, and a $1,000 weekly withdrawal limit for cash-back transactions at ATMs and retail registers.

The Bottom Line

Receiving and sending money is made simple with the Cash App. In the digital age, this service is an excellent tool because transfers are quick and straightforward, and you can invest and utilize a debit card with it as a bonus.

However, there is no guarantee that you’ll receive your money back if the company is hacked and things don’t work out because your Cash App balance needs to be FDIC-insured. So, replacing a bank with Cash App is not a good idea. However, it’s useful for securely and quickly transmitting small amounts.

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