If you would like an instant deposit to your account, the deposit is subject to a 1.5 percent fee of the total amount, with a $0.25 minimum fee.
You can send up to $250 within a 7-day period, and receive up to $1,000 within a 30-day period. If you want to increase your sending and receiving limits, you’ll have to further verify your identity on the service.
To fully verify your identity, Cash App asks for your full name, birthday, and the last 4 digits of your Social Security number.
You can open an account with no minimum balance, and Cash App doesn’t advertise the maximum balance your account can have. The minimum amount you can send and receive is $1. There is no service charge or monthly fee for having a Cash App balance.
How Secure Is Cash App?
Despite the solid security, remember your Cash App balance is not FDIC-insured. This is definitely a strike against the service and something to keep in mind when you open an account.
Cash App also allows you to invest in stocks and Bitcoin. If you use Cash App for investing purposes, this might amplify your concerns. Cash App is a registered broker-dealer, member FINRA and SIPC.
“Cash App might make sense for a new investor seeking to get started,” says Ryan Shuchman, investment advisor and partner at Cornerstone Financial Services.
“The platform doesn’t offer mutual funds. You also can’t trade options or some other advanced investment products. Cash App has very limited analytics and research features. It is probably not an appropriate platform for larger and more sophisticated investors,” says Shuchman.
Apps like Cash App, Venmo, and Robinhood make it easier than ever for people to buy Bitcoin and other cryptocurrencies, but there are good reasons to proceed with caution before you do.
For starters, cryptocurrency is a relatively young asset class compared to conventional stocks, which contributes to its highly volatile value and big price swings by the day and even by the hour. Experts say it’s smart to keep crypto investments to less than 5% of your portfolio, and to make sure it doesn’t get in the way of saving for emergencies and paying down high-interest debt.
And while apps like Cash App tend to be easier to use, mainstream cryptocurrency exchanges come with more features and industry-leading security measures that protect investors’ crypto.
Cash App payments are encrypted, most payments are made instantly, and usually the payments cannot be cancelled once the money is sent. This definitely leaves room for fraud and other crimes of social engineering.
“Third party apps like this, although they may be PCI-DSS compliant and encrypt all of their data, still put the responsibility on the user to make sure they use strong security and privacy practices for protecting their account,” says Kimble.
Sattar also notes that Cash App users can be susceptible to some forms of cybercrime, due to the digital nature of the payment service:
“As with any internet-based technology, Cash App is susceptible to sniffing attacks. For example, if someone claiming to help you asked you to share your screen, do not do it. Anyone qualified to help will walk you through the steps without ever asking for a screen share or login credentials,” says Sattar.
Cash App is a handy service for sending payday loans Fredericksburg OH and receiving money. Transfers are fast and easy, and the added bonus of being able to invest and use a debit card with the service makes it a great tool in the digital age.