- Security
- Privacy
- Performance
Cash App is a popular peer-to-peer payment service that’s convenient and relatively safe for sending money to friends. Learn more about Cash App and how to use it more safely. Then, download online security and anti-scam software to help protect against malware and other threats that could compromise your accounts.
Cash App is a peer-to-peer (P2P) mobile payment app with over 50 million users. As a financial services platform, it’s primarily used to send and receive money transfers quickly and conveniently. The app’s popularity has grown considerably in recent years, and its services now include allowing users to invest in stocks, file taxes, and trade or transact with bitcoin.
Cash App was originally launched as Square Cash in 2013 by Jack Dorsey (co-founder of Twitter), Jim McKelvey, and Tristan O’Tierney. Since its launch, use of money transfer apps like Cash App has surged, with 61% of U.S. adults using them to simplify payments. Today the app is owned by Block, Inc.
Cash App isn’t a bank. It’s a “nonbank” fintech company or financial services platform, not a regulated financial institution. It doesn’t have a banking charter (a license to operate as a bank) or branches that users can visit. However, Cash App does provide bank-like services through regulated partner banks.
Cash App partners (or has partnered) with several U.S. banks to provide financial services:
Sutton Bank issues pre-paid debit cards for Cash App users, known as Cash App Cards.
Wells Fargo holds users’ funds in a pooled deposit account.
Lincoln Savings Bank handled direct deposits for Cash App customers from 2016 to 2021.
Cash App’s investment services are offered through Cash App Investing LLC, which is a member of the Financial Industry Regulatory Authority (FINRA) and is registered as a broker-dealer with the Securities and Exchange Commission (SEC).
Cash App is generally safe if you use it for transactions with people you know and can trust, but you should be cautious when transacting with strangers or depositing money. If you send money to a fraudster, you may not get your money back. And money you hold on Cash App may not be insured against financial failure or other risks to the company.
Cash App isn’t an alternative to a traditional bank account — it doesn’t have robust protections against fraud and can’t guarantee refunds. U.S. government agencies have warned that apps like Cash App may “lack individual deposit insurance coverage,” meaning your money could be lost “in the event of financial distress or failure.” As such, it’s best used for small, personal transfers only, and you should be careful conducting larger transactions or storing money.
Data encryption, 2FA, and other security protocols help to secure Cash App activity.
That said, Cash App does include a range of safety features, including:
Encryption: Data sent via Cash App is protected by strong encryption, meaning your financial information is kept safe in transit, even when you’re using public Wi-Fi.
Two-factor authentication (2FA): Cash App offers optional 2FA that sends a one-time code via email or text to enhance account security. Additionally, you can enable a PIN requirement for every transaction to further protect your funds.
Biometric settings: Cash App has a Security Lock feature that allows you to enable biometrics like Touch ID or facial recognition to authorize transactions.
User verification: Verified users have a blue badge next to their profile icon or name. This means they have provided Cash App with their legal name, date of birth, and part of their Social Security number, helping to mitigate fraud risks.
Freezable cards: A Cash App Card is a debit card linked to your Cash App account balance. If your card is lost or stolen, you can lock it and report the incident to Cash App support.
Notifications and confirmation: If Cash App notices unusual activity on your Cash App Card, it may cancel the transaction and send you a notification in the app. You’ll also be asked to confirm important details when sending money abroad or logging in to a new device.
Cash App offers many convenient features besides quick money transfers, such as the Cash App Card, investment options, and free tax filing. However, there are also some drawbacks you should consider before using the app, such as fees for instant transactions and limited buyer protection.
Cash App prosCash App is easy to use and facilitates quick transactions as well as offering a range of financial services, all from a single app. Here’s a rundown of its benefits:
Convenience: You can pay and receive money on the go, making it convenient for situations like splitting a restaurant bill with friends or sending money for a bill to your partner or housemate.
Instant transfers: Most transactions are immediate, making it useful when you need to transfer money urgently — especially if your bank takes several business days to process requests.
Commission-free stocks: Cash App allows you to invest in stocks without commission fees. The service includes alerts for changes in the market and access to expert tips.
Free tax filing: You can file your federal and state taxes through the app for free. Cash App Taxes promises accurate calculations and a maximum refund guarantee. You can also receive any refunds up to five days earlier than if it’s processed via your bank.
Bitcoin transactions: You can buy, sell, and receive bitcoin on Cash App. The bitcoin transaction fee varies but is typically 1-3% — on par with or sometimes cheaper than many specialized crypto exchanges.
Cash App Card: Cash App offers a Visa debit card linked to your account, usable for purchases, direct debits, and cashback rewards. It provides fraud alerts and some buyer protection, making these transactions potentially safer than in-app transfers.
Cash App consThere are certain potential drawbacks to using Cash App, including the following:
Instant transactions fee: Instant transactions are subject to a fee of 0.5-1.75%. This means that if you pay another user $100 and incur the highest fee (1.75%), you’ll be charged an extra $1.75. Fee-free transactions are available, but they take one to three days.
Initially low limit: Within the first 30 days of opening a Cash App account, users can only send and receive up to $1,000. This is to help prevent fraud and comply with certain federal laws. If you plan to download Cash App to make a large transfer straight away, you’ll be disappointed.
Can’t be used internationally: Cash App is only available in the U.S., so it can’t be used to complete transactions with people or companies overseas, or on vacations or work trips abroad.
Targeted by scammers: Cash App is frequently exploited by fraudsters and identity thieves due to its lack of buyer protection. If you send money to a fraudster, it may be impossible to get it back.
Cash App offers convenience, but it’s not without risks. Limited buyer protection and potential exposure to data breaches underscore that fintech services like Cash App may not provide the same level of security as traditional banks — even if they are practical.
Pew Research reports that 13% of PayPal, Venmo, Zelle, and Cash App users have been scammed at least once on these platforms, with a further 11% reporting that their account had been hacked.
There are no refunds for scams and fraudulent transactions on Cash App. This makes it much riskier than a bank, which may reverse charges in some cases, or credit cards, which often have chargeback protection. But Cash App Card transactions are better protected than in-app transfers, allowing users to dispute charges in a limited number of cases, including duplicate and unrecognized transactions.
Limited buyer protection makes Cash App attractive to scammers and identity thieves. Common Cash App scams involve social engineering tactics, like asking for deposits for fake items, offering shady investment returns, or requesting vague “verification fees.” Tech support scams, romance scams, and other similar ploys also frequently involve Cash App transfers. Once money is sent to a scammer, it's unlikely to be recovered.
The Federal Deposit Insurance Corporation (FDIC) is a government body responsible for insuring bank deposits. The FDIC only insures Cash App balances for users with a Cash App Card or a Sponsored Account. It does not ordinarily insure the money users store in the app.
This lack of insurance means that if Cash App fails or goes bankrupt, your money may be lost. The Consumer Financial Protection Bureau has issued warnings that your funds are at greater risk when held in a payment app like Cash App instead of an FDIC-protected bank account.
Cash App has experienced significant data breaches, including a 2022 incident where a former employee accessed customer data, followed by another breach in 2023. More recently, Block, Cash App’s parent company, was ordered to pay $175 million in compensation to Cash App users due to weak security procedures.
Cash App accounts can be vulnerable to hacking or phishing attempts, particularly if you do not enable two-factor authentication or your email is compromised. If a thief steals your phone or a phisher gets ahold of your Cash App account information, your money could be stolen. Always be wary of Cash App requests from strangers and messages asking you to click a link or share information — this could be a phishing attempt.
Given the potential risks associated with using Cash App, it is important to take precautions to protect your account and personal information. Here are some tips for using Cash App more safely:
Only send money to people you know: Don’t use Cash App to pay for goods on the internet. Be particularly wary of merchants requesting off-platform payments on sites like Mercari, Poshmark, or eBay — they’re likely scammers.
Be on the lookout for phishing: Scammers may pose as friends, family, customer support, or law enforcement to get ahold of your account information or trick you into sending money.
Enable 2FA: This adds an extra layer of security by requiring a unique code sent to your phone or email before logging into your Cash App account.
Use a strong password: Avoid using recycled or easily guessed passwords. Consider using a password manager to generate and store strong passwords for all your accounts.
Monitor your transactions: Keep track of any transactions made on your Cash App account so you can take action if you notice transfers you never made.
Only use trusted devices: Avoid logging into your Cash App account from public or shared devices, as someone could access your account if you forget to log out.
Keep your app updated: Regularly install Cash App software updates to ensure you’re protected by the latest security patches.
Many P2P payment apps are available as alternatives to Cash App, including Venmo and Zelle. Other types of payment platforms, such as PayPal, Google Pay, and Apple Pay, can also be used to make P2P payments.
Every alternative has advantages and unique features, but keep in mind that scams can happen on Venmo, Zelle, and any other money app, too — the risks are not exclusive to Cash App.
Venmo has been around since 2009 and is currently owned by PayPal. The app is known for its unique social media feature, which allows users to see and comment on transactions made by their friends and family. Venmo also offers a Teen Account for young people aged 13-17, which includes an optional debit card. Parents or guardians must register the account and can track their child’s spending.
Zelle offers direct integration with many banks, which allows users to easily send money between the app and their current account. For participating banks, Zelle is typically available within the bank’s existing app, meaning you don’t need to download a separate app or set up a new account. Transactions on Zelle are usually free and instant, although this can vary depending on the bank you are with.
Whether you use Cash App, another money app, or any form of online banking, it is essential to keep your device and your data safe. Download Avast Free Antivirus to help thwart hackers and scammers with powerful, real-time threat protection that defends against phishing attacks, malware, and other online scams.
Unverified Cash App users can send and receive up to $1,000 in a single 30-day period, with a lifetime account limit of $1,500. When the limit is reached, users are prompted to verify their account. Verified users can send up to $20,000 every 30 days (with a limit of $10,000 within one week) and receive $25,000 every 30 days (with a limit of $12,500).
Yes, Cash App charges fees for certain transactions. Although subject to change, currently the most common fees are:
0.5%-1.75% for Instant Transfers (with a minimum charge of $0.25)
$2.50 for ATM withdrawals using the Cash App Card
3% for transferring money from a credit card to your Cash App balance
2.75% for payments received on Cash App for Business accounts
Variable fee for bitcoin transactions (typically 1-3%)
Refunds on Cash App are instant if both parties are Cash App users. However, if the payment was made from a debit card or linked bank account, a refund can take between one and three days. Users will receive a notification to confirm the refund.
Cash App is not considered a checking or savings account, although it does include some similar features. Instead, it is considered a financial services platform that partners with banks and other financial institutions to fulfill services for its users.
Cash App is a registered trademark of Block, Inc.
