What is Cash App and how does it work? [2023]

Adam Rozsa

Curious about Cash App? It’s a money transfer service that allows for sending, receiving and even investing.

But if you’re wondering exactly how Cash App works, you’ve come to the right place. In this guide, we’ll run through everything you need to know about the platform.

And if you’re interested in a convenient alternative, check out Wise - you can send money all over the world for low fees¹ and the mid-market exchange rate.

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How does Cash App work?

So, what is Cash App, and how does it work? And what can you use Cash App for?

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 debit card, which can be uniquely personalized, and allows for ATM withdrawals too.

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.

What are the fees of using Cash App?

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.

For example, if you want to make a standard transfer from your Cash App balance to your linked bank account, it’s free.

But if you can’t wait 1-3 working days and want to make an instant direct deposit transfer, you’ll be charged a fee of 0.5% to 1.75%².

There are also Cash App fees for ATM withdrawals. You’ll pay $2 per withdrawal, plus an additional fee at the ATM for using a card from a different bank³.

However, there is a way around this. If you set up a direct deposit and receive more than $300 per month in your Cash App balance, you’ll get a refund for three ATM withdrawals over a 31 day period³.

Read more - Cash App fees


Get a Wise account to send money overseas with low fees

Want to send money to someone in another country? One of the cheapest ways to do it is with Wise.

Open an account with Wise and you can send money all over the world for low, transparent fees¹. What’s more, you’ll always get the mid-market exchange rate. This is the fairest rate you can get, the one you’ll find on Google or currency sites like XE.com.

Sending money with Wise is quick, easy and secure. And it ensures that more of your money arrives at its destination. Also, the Wise money transfer app is available on both the [App Store]https://wise-app.sng.link/Apnl5/big8?_dl=tw%3A%2F%2F&_smtype=3) and Google Play.

Get a Wise account today

How to send, receive and add money on 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”.

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 money on Cash App, receiving it 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.

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

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

What’s the age limit to use Cash App?

You need to be at least 18 years old to use Cash App⁴.

Can you get a debit card with Cash App?

One of the great features of Cash App is that it comes with a debit card. Your Cash App card can be used both online and in stores, and you can use it with Apple Pay and Google Pay.

And as an extra perk, you can even customize the design of your Cash App Card.

If you want a truly international debit card, check out the Wise multi-currency card. It automatically converts your USD at the mid-market exchange rate whenever you spend in-store or online, and it works in 174 countries.

How long does it take to send money with Cash App?

It should take only a matter of minutes to send or receive a payment with Cash App. In some cases, payments will be available in the recipient’s balance instantly⁵.

What are the limits on Cash App?

Like many money 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 limit of $1,000 per month to send or receive money through Cash App. You can increase these limits by providing additional ID verification, such as your full name, date of birth and the last 4 digits of your SSN⁶.

There are also limits for Cash App cards. You can spend a maximum of $7,000 per transaction and per day in total, and up to $15,000 a month⁷.

Read more - Cash App Limits

Is Cash App safe to use?

Cash App uses a number of security features to protect you and your money. These include⁸:

  • Security locks on your account, such as PIN, Face/Touch ID verification
  • Account notifications
  • PCI-DSS level 1 compliant data encryption
  • Fraud protection
  • The option to disable card spending at any time (i.e. if your card is lost or stolen).

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.

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.

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 favorite stocks for as little as $1. Additionally, Cash App also doesn't charge you a dime in commission fees.⁹

Pretty cool, right?

If you want to learn the ins and outs of Cash App Investing, then read more here.

Alternatively, 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

Frequently asked questions

Is Cash App better than Venmo or PayPal?

Cash App and Venmo both offer many of the same features for sending and receiving money - and both come with a card. However, Cash App also offers the option to invest in stocks and Bitcoin.

When comparing Cash App to PayPal, the latter is arguably the best for international payments.

However, which transfer app you choose all depends on your needs.

Does Cash App work in Mexico?

Unfortunately, using Cash App in Mexico isn’t an option at the moment. It currently only works in the US and the UK, so you can’t use it internationally.

Does Cash App work in Australia?

You can currently only use Cash App in the UK or the US, so it’s not yet an option for Australian users.

Does Cash App work in India?

No, you can’t use Cash App in India at the moment. It’s currently limited to just the US and the UK, but it could expand to other countries in the future.

Does Cash App work in Turkey?

You can’t use Cash App overseas, so that unfortunately means it isn’t available in Turkey.

Sources used for this article:

  1. Please see Terms of Use for your region or visit Wise Fees & Pricing: Only Pay for What You Use for the most up-to-date pricing and fee information.
  2. Cash App - Cash Out Speed Options
  3. Cash App - Cash Card ATM fees
  4. Cash App - Terms of Service
  5. Cash App - Sending and Receiving Payments
  6. Cash App - Increase Cash Limits
  7. Cash App - Cash Card
  8. Cash App - Security
  9. Cash App - Investing Fees

Sources checked on 24-Oct-2022.

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.

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