How Does Cash App Work - What Is It, How to Use It and Main Features

Vivien Thuri
18.06.21
5 minute read

Cash App is another peer-to-peer transfer service that allows for sending, receiving and even investing money. It’s putting us a step closer to a cashless world one transaction at a time.

But if you’re wondering how Cash App works then you’ve come to the right place. In this article, Cash App is going to be put under the microscope, so you can see if it's best for you.

On top of this, you’ll also be introduced to Wise, so you can see how to save when sending money abroad.

Learn more about Wise 👩‍🎓

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Table of Contents 📝
  • How does Cash App work
  • How to send, receive and add money on the Cash App
  • Does Cash App have a limit?
  • Does Cash App charge any fees?
  • Cash Card - What is it and how to use it
  • Can you get a refund on Cash App?
  • Investing on Cash App
  • How does Cash App work

    So, what is Cash App and how does it work?

    Cash App has quite a few different features. The app allows for lightning speed transactions - sending and receiving money is quick, easy and convenient. Similarly, it offers its users a Visa debit card, which can be uniquely personalised, and allows for ATM withdrawals.

    And on top of all this, Cash App also allows you to invest in stocks and Bitcoin, giving you a step-by-step introduction to the world of investing.

    Throughout this article you'll find useful links to other pages that go into more detail about a certain aspect of Cash App. Feel free to give them a click when you’re interested.

    But enough chat - let’s get started!


    How to send, receive and add money on the Cash App

    Sending, receiving and adding money on Cash App is as easy as one-two-three. Let’s first take a look at how to send money.

    How to send money on Cash App

    If you want to send a payment on Cash App, all you need to do is:

    1. Open Cash App
    2. Enter the amount you want to send
    3. Click “Pay”
    4. Enter the recipient’s phone number, email address or $Cashtag
    5. Enter the purpose of the payment - for example, “last night’s dinner”
    6. Select “Pay”¹

    Not so difficult, right?

    You can also send money from your Cash App balance to your linked bank account. This is called “Cash Out”.

    You get to decide the speed of your Cash Out transfer, and can either select a standard or instant transfer. With standard you’ll receive your money within 1-3 business days without paying any fees. With an instant transfer you’ll get your money instantly - unsurprisingly! - but you’ll have to pay a small fee of 1.5%.²

    Read more - How to send money on Cash App

    On top of this, Cash App now lets you send money from the US to the UK. If you’re looking to send money to more countries than just the UK, then you might be interested in enrolling with Wise.

    With Wise, you can pick up where Cash App leaves off, allowing you to send money abroad to over 70 different countries. You’ll also have your money exchanged at the mid-market exchange rate without any hidden fees.

    How to receive money on Cash App

    Sending was easy, right? So now let’s take a look at how to receive money on Cash App. Luckily, just like sending, receiving is a walk in the park.

    Cash App offers another neat feature, which is the ability to request payments. To request a payment, all you need to do is:

    1. Enter the amount you want sent to you
    2. Select the person sending you the money

    Once your friend receives the payment request, all they need to do is follow the remaining steps to complete the transaction.³

    All received payments on Cash App will be stored in your Cash App balance.³


    How to add money to Cash App

    To add money to your Cash App balance, you’ll need to:

    1. Open Cash App
    2. Click the Banking tab on the Cash App home screen
    3. Click “Add Cash”
    4. Select an amount to add
    5. Click “Add”
    6. Confirm the transaction either by using your Touch ID or PIN⁴

    Once you’ve topped up your Cash App balance, you’ll be able to send directly from it to your friends, as long as you have a verified account.³


    Does Cash App have a limit?

    Like most peer-to-peer transfer services, Cash App has limits. There are limits on sending, spending, receiving and withdrawals. To increase your Cash App sending limit, you’ll need to verify your account.

    With an unverified account, you’re capped at a maximum sending limit of $250 per week and receiving limit of $1,000 per month.⁵ With a verified account, your sending limit increases to a whopping $7,500 per week.³ Big difference, right?

    To verify your account, you’ll need to:

    1. Open Cash App
    2. Attempt to send a payment of more than $250
    3. Cash App will automatically prompt you to verify your account, so just follow the steps
    4. Provide your full name, date of birth and the last four digits of your social security number
    5. Complete the remaining steps and submit the verification form

    And that’s it! Once that’s completed, your account will be verified and you can begin sending higher amounts and receiving unlimited payments.

    Read more - Cash App Limits

    Does Cash App charge any fees?

    One of Cash App’s strong points is its lack of fees. But, depending on how you use it, there may be some situations where you’ll have to pay. Let’s take a closer look.

    If you want to make an instant transfer from your Cash App balance to your linked bank account, then you’ll be charged the instant transfer fee of 1.5%.²

    Cash App also charges a fee of $2 for ATM withdrawals. But, if you set up a direct deposit and receive more than $300 per month in your Cash App balance, then you’ll be reimbursed for three ATM withdrawals over a 31 day period. Even better is that for every subsequent $300 deposited in your account, you’ll be reimbursed for another 31 days. ⁶

    Read more - Cash App fees

    Cash Card - What is it and how to use it

    Cash App also offers their very own Visa debit card, called a “Cash Card”.

    You can sign up and order your Cash Card for free, and can even personalise it with emojis, a signature and colors. This makes it a pretty flashy looking card compared with your standard ones!

    When you make a payment using your Cash Card, it takes the money directly from your Cash App balance.

    You can use your Cash Card in stores and online everywhere that Visa is accepted. You can also withdraw cash from ATMs using it.

    Read more - Cash App card

    Can you get a refund on Cash App?

    Cash App transactions happen at lightning speed, which is a useful aspect of it. But when it comes to refunds, it can also make things a bit tricky.

    Making a Cash App refund request is easy. But actually getting a refund is another thing. This is because there’s no guarantee you’ll get your money back and Cash App isn’t responsible for your loss.³

    All of this means that you need to be sure you know and trust the person you’re sending money too. On top of this, you should always double check that you’ve entered the recipient’s details correctly.

    If you are lucky enough to get your refund, then you should know that it can take up to 10 business days to appear in your Cash App balance. If it takes any longer than this then you need to contact Cash App customer support.⁷

    Read more - Cash App refund

    Investing on Cash App

    One of Cash App’s unique features when compared to other peer-to-peer sending apps is that you can use it to invest in stocks and even Bitcoin. That’s right - you can finally join the world of stocks!

    What makes Cash App Investing especially cool is that it’s the perfect investment platform for beginners. It walks you through each step and doesn’t confuse you with complex graphs and jargon.

    It also allows something called “fractional share investing” which basically means that you can start investing in your favourite stocks for as little as $1.⁸ Additionally, Cash App doesn't charge you a dime in commission fees.⁹

    If you already have some experience in trading and investing, then check out the 11 best investment apps of 2021.

    Read more - Cash App investing

    Sending money internationally, spending abroad and saving on fees all the way. Meet Wise!

    As previously mentioned, with the help of Wise, you could save yourself a lot in extra fees when sending and spending money abroad.

    With Wise, you’ll be able to:

    • Send money to more than 70 countries
    • Use the Wise Card to spend in the local currency, in over 200 countries
    • Receive payments when abroad like a local in 10 different currencies
    • Convert and hold more than 50 currencies

    Join Wise today 🚀

    Sources:

    1. Cash App - Sending a payment
    2. Cash App - Cash out speed option
    3. Cash App - Additional cash terms of services
    4. Cash App - Add cash
    5. Cash App - Increase limits
    6. Cash App - ATM fees
    7. Cash App - Merchant refunds
    8. Cash App - House rules
    9. Cash App - Investing fees

    All sources checked 10 June 2021


    This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.

    Wise is the smart, new way to send money abroad.

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