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Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. SHARE: SDI Productions/Getty Images June 16, 2021 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, found a battered copy of Your Money or Your Life at the public library. In addition to writing for Bankrate, her work has appeared on CreditCards.com, Vox, Lifehacker, Popular Science, The Penny Hoarder, The Simple Dollar and NBC News. Dieker spent five years as writer and editor for The Billfold, a personal finance blog where people had honest conversations about money. Dieker also teaches writing, freelancing and publishing classes and works one-on-one with authors as a developmental editor and copyeditor. Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing work for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and more. Antonio Ruiz-Camacho is senior director of content for and . He has more than 20 years of international experience leading content teams, focused on consumer advice, technology and immigration. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo The Bankrate promise
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Many of us want to make our financial lives as simple as possible. We write one check to the landlord and wait for our roommates to pay us for their share of the rent. We offer to pick up the tab at a restaurant instead of asking the server to split it seven ways. We give a friend a few bucks when they need it and tell them they can pay us back someday. But letting people borrow money—even for something as small as the cost of a restaurant meal—can be an expensive proposition. According to a recent , 60 percent of American adults have lent cash to a friend or family member with the expectation of being paid back; 37 percent of those adults never saw the money again. That’s where peer-to-peer transfer apps like Cash App come in. Not only does Cash App make it easy to send money to friends and family, but it also makes it easy to request payments from people. We’re not saying sending someone a Cash App request will ensure you get the money you’re owed, but the Cash App notification could serve as a helpful reminder. Plus, Cash App allows you to direct deposit your paycheck into your Cash App account, invest the funds in your account balance and use the Cash Card to make purchases everywhere Visa is accepted. Cash App isn’t just a money transfer service anymore; it’s a full-fledged financial tool. How does Cash App work What are the Cash App fees? Should you request a Cash App card? Let’s take a look at how to transfer money safely with Cash App—and how you can use Cash App to pay back friends and family, get reimbursed for group expenses and earn rewards on your purchases. What is Cash App
Cash App is a peer-to-peer money transfer service. Like , Cash App lets you quickly send and receive money. You can use Cash App to pay your share of the rent, reimburse friends and family members, make donations and even . You can also use Cash App to request money from friends and family. If you cover a friend’s meal at a group brunch, for example, you could send your friend a payment request through Cash App to make sure they pay their share of the bill. Recently, Cash App has expanded to include additional features—like the ability to invest your Cash App account balance and the option to receive direct deposits in your Cash App account. Cash app even lets you convert dollars into Bitcoin, which you can do with a few simple taps from your home screen. There’s also a new Cash App card that functions like a debit card, works wherever Visa is accepted and lets you make payments from your Cash App balance. How does Cash App work
Cash App has a simple interface that makes it easy to send or receive money. Tap the dollar amount you’d like to send or receive, tap “Request” or “Pay,” and you’ll be seconds away from sending a friend money or requesting that they send you money. The money you send and receive through Cash App can come from a linked debit card, credit card or bank account—but you can also add money to your Cash App account and draw from that balance when you send funds. You can even get your paycheck direct-deposited into your Cash App account if you want to maximize your Cash App balance. Once your Cash App account is set up, you can request a Cash Card if you prefer. This Cash App card is a free debit card that works wherever Visa is accepted. Any purchases you put on your Cash Card get withdrawn from your Cash App balance (or if you do not have enough money in your balance, your linked bank account)—and Cash App’s Boost program allows you to earn rewards on everyday purchases, including $1 off coffee shop visits. Just keep in mind that Cash App’s Boost program is not on par with cash back programs from traditional rewards credit cards. Where this program lets you earn cash back on very specific purchases and only when you activate each offer manually, a would actually let you earn rewards on everything you buy. Does Cash App charge any fees
While using Cash App and its related Cash Card is totally free, there are a few fees you will face as you start using the app. Fortunately, these fees are avoidable. Cash App charges a 3 percent fee if you use a credit card to send money, but making payments with a debit card or bank account is free. Cash App also charges a 1.5 percent fee if you request an Instant Transfer of funds from your Cash App account to your linked debit card. If you request to transfer money to a bank account, the transfer is free — however, you must wait 1-3 business days for the transaction to process. How to use Cash App to send money to friends
Make a Cash App account
First, download Cash App through the or . Then, open the app and create an account by entering your phone number or email address and adding the one-time login code Cash App provides. You must be at least 18 to open a Cash App account. Link your debit card credit card or bank account
When you open a new Cash App account, you’ll be asked to add a bank account using your debit card. Enter your debit card number to complete the process, or skip this step. After your account is created, you can add additional banks and credit cards by tapping the bank icon on the app home screen. If you link an active debit card to your Cash App account, you’ll be able to claim a $Cashtag. This is a short nickname that you can give to friends and family, to make it easier for them to find you on the app. People will also be able to send you money by entering your email address or phone number if they don’t know or can’t remember your $Cashtag. Begin the payment process
Enter the amount of money you’d like to transfer. Then tap “Pay” and Cash App will ask you to identify the person who should receive the money. Find the person you want to send money to
Enter the email address, phone number or $Cashtag of the person you want to send money to. Your recipient isn’t required to have a Cash App account; as long as you have their email address or phone number, you can use Cash App to transfer money to them. It’s important to note that if your recipient doesn’t accept the money within 14 days, the transfer will expire. Complete the transfer
Enter a short note on what the payment is for—maybe you’re paying someone back for movie tickets, for example—and tap “Pay” again to complete the transfer. Does Cash App take credit cards
Cash App does allow you to link credit cards to your account and use those cards to make purchases or transfer money. When you use a credit card with Cash App, you’ll pay a 3 percent fee on the transaction. If you want to avoid paying this fee, use a debit card or a linked bank account with Cash App—because debit and bank account transactions are fee-free. When you use a credit card to send money to friends on Cash App, you should be aware your card issuer might categorize the transaction as a . Some lenders count peer-to-peer transactions as cash advances because they consider it the equivalent of handing your friend cash—and cash advances come with higher-than-usual interest rates that begin compounding the day the transaction is made, with no to allow you to pay off the debt interest-free. To , pay off your credit card balance as quickly as possible. Still, you will definitely want to find out for sure if your card issuer codes Cash app transfers made with a credit card as a cash advance. Discover does not, for example, and the same could be true with other major card issuers, although it may be difficult to get confirmation from customer service representatives. If you want to know for sure whether your credit card will charge a Cash app transfer as a cash advance, an easy way to check is to transfer a small amount of money first then check your credit card statement to look for additional cash advance charges. If they never appear, that’s a good sign you can use your credit card to transfer money and earn rewards without having to pay pesky cash advance fees that can wipe out any benefit. Best way to earn credit card rewards with Cash App
Let’s say you signed up for the in order to earn the bonus of 60,000 points when you spend $4,000 within three months of account opening. If you were $1,000 short of the spending requirement to earn this bonus, you could use Cash App to send money to a trusted friend or a partner with your credit card with a 3 percent fee. (Of course, you would want this money back!) This means you would pay $30 to send your friend $1,000 through Cash App, but the move could inch you over the finish line in earning 60,000 Chase Ultimate Rewards points, which are worth $600, or $750 when redeemed for travel through the Chase portal when processing this transaction in the first 3 months of account opening. That’s just one example, and there are many other top credit card offers with bonuses worth hundreds of dollars. If you’re angling for a new and you’re realizing Cash App could help, make sure to check out the to see how they stack up. Of course, you don’t have to have a credit card to earn rewards with Cash App. If you have the Cash Card, you can use Cash App’s Boost program to get instant discounts on purchases. That’s another great way to earn rewards with Cash App! Frequently Asked Questions about Cash App
Are Cash App transactions safe and private
All Cash App payment information is encrypted, and users receive a one-time-use login code every time they sign into the app. Any transactions you make are private and do not appear on a public social feed like . Is the money on my Cash App account insured
The money on your Cash App account is not FDIC-insured. That means your money is not federally backed if you send it to the wrong person or for fraudulent activity. How quickly do Cash App transactions go through
Cash App transactions are instant. Can I cancel a Cash App transaction
Since Cash App transactions are instant, you won’t be able to cancel a transaction after you’ve made it. If you or transfer money to the wrong person, you can use Cash App’s request function to request that they pay you back—but there’s no guarantee that you’ll see your cash again. That’s why it’s important to always double-check your $Cashtags, phone numbers and dollar amounts before sending money through Cash App, Venmo or any other peer-to-peer payment service. Does Cash App let you earn credit card rewards
You can earn rewards on Cash App transfers you make with a linked credit card, but a 3 percent credit card transaction fee will apply. SHARE: Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, found a battered copy of Your Money or Your Life at the public library. In addition to writing for Bankrate, her work has appeared on CreditCards.com, Vox, Lifehacker, Popular Science, The Penny Hoarder, The Simple Dollar and NBC News. Dieker spent five years as writer and editor for The Billfold, a personal finance blog where people had honest conversations about money. Dieker also teaches writing, freelancing and publishing classes and works one-on-one with authors as a developmental editor and copyeditor. Antonio Ruiz-Camacho is senior director of content for and . He has more than 20 years of international experience leading content teams, focused on consumer advice, technology and immigration. Related Articles