As one of the longest trending fintech apps this year, Cash App has dominated the financial sector through its financial platform that has enabled millions to transact across the globe; even with strangers. It comes as no surprise that it occasionally trends on Twitter and we will find out why later on through this article. Learn how to transfer money easily from cash app, however, let’s start with…
What Is Cash App?
Cash App is a mobile payment service developed by Square Inc. It was formerly known as Square Cash. It allows users to transfer money to one another using its mobile app.
You can request and send money to another Cash account via its Cash App or email. The recipient can then choose to withdraw the money with its debit card, or “Cash Card” in ATMs or transfer it to any local bank account.
Square Cash even introduced a unique username, “$cashtag”. You can transfer and request money from different users by entering this username.
Just like PayPal or Venmo, Cash App is a mobile app-focused money transfer service. However, Cash App has some other functions like; giving you a bank account and a debit card, which you can use at any ATM. With Cash App, you can even invest in stocks and Bitcoin.
The major downside of Cash App is that your Cash App balance is not insured by FDIC which implies that there is no guaranteed protection of your money in case something goes wrong.
History Of Cash App
Cash App was launched around October 2013 by Square Inc., “a company which was co-founded by Jack Dorsey of Twitter”. Cash App was initially called “Square Cash”.
In around 2015, that is when Square introduced a unique username “$cashtag” which was used by businesses, individuals, organizations, and business owners to send and receive money.
Around 2017, Square introduced the capability to buy bitcoin and also invest in stocks using the Cash App and by January 2018, Cash App was upgraded to support Bitcoin trading.
In Nov.2020, Cash App officially announced the acquisition of Credit Karma Tax, a “free do-it-yourself tax-filing service” at some good price $50 million.
What Are The Benefits Of Using Cash App?
Cash App has proved to be one of the easiest and cheapest methods in making cash transactions online.
- Use Cash App and you will not expect any fees to be charged on your basic services like sending and receiving money or fees o foreign transactions. Cash App also provides optional free debit card “the Cash Card” which enables users to make transactions and withdraw the money that they have in their Cash App account.
- Cash App perhaps one of the fastest ways that you can send money from one person to another. All you need to do is to open Cash App, enter the recipient’s name and the amount you want to send. After confirming the transfer of funds, the money will be sent and this can only take seconds to complete.
- You can invest in stocks and also trade with Bitcoin at a fair Bitcoin transaction fee “1.76%” which compares favourably with other cryptocurrency platforms. No commission fees will be deducted when investing in the stocks and you can also sell the stocks with no commission.
- With Cash App, reimbursements are possible and easy and you can easily see who has reimbursed you.
What Does Cash App Do?
The various tools on Cash App enable you not only to save money but also to invest it. Below are some of the best features that you will feast on with the Cash App:
You can trade in Bitcoin and also invest in stocks, you can send and receive funds instantly, you can use your existing bank card to sign up with Cash App, you can add cash into your Cash App account as well as receive payments via direct deposit and, you can perhaps earn some rewards.
Cash App also offers the Cash Card, which is a free, customizable debit card that is connected to users’ Cash App balance.
Below, we will show how ti transfer money from a cash app to a bank account.
How Do I Set Up Cash App?
Follow these step-by-step instructions to set up your Cash App on your Android or iOS smartphone and send your first payment.
Cash App Sign Up
The first thing you need to do is to download the Cash App and then enter your phone number, or your email whichever one you want to use to sign up for the account.
- Cash App will then need to verify your account. They will send you a code via email or message to whichever one you signed under. Enter that code where you are asked to type it and press “Next”.
- You will then be asked to put your first and last name. Then click “Next”.
- The next screen will ask for your debit card and this is going to be linked to your Cash App account. So anytime you want to add money to your account, it will be done via this debit card.
- Next, you need to choose what your cashtag will be. This will be the tag that people will use when they want to send money or they will see when you send money to them. It is in the format “$cashtag”. This cashtag must include at least one letter and a maximum of 20 characters. After you sign in to your Cash App, you can manage your account, view transaction history and send payments.
How Does Cash App Work?
You can transfer funds to any Cash App user, as long as you know their phone number, email address, or unique $cashtag. We shall start by requesting money and how to pay someone.
Let’s say that you want to pay someone, you will have to log into your Cash App account and enter the amount you want to pay that person on the keypad at the Cash App homepage.
You will be taken to the next screen where you are required to fill that person’s Cash App information. If you are requesting money from someone using Cash App, it goes the same way as paying.
You can also enable contacts if you have the person’s information on your phone to speed up the process.
- The clock icon in the bottom right hand corner shows your activity with the Cash App, so any type of transaction will show up there. It will also show any trades that that you have done when investing using the Cash App.
- The squiggly line at the bottom is where you can invest using the Cash App. You can invest in etfs, index funds or individual stocks.
- The home icon at the bottom left hand corner is where you can update your information; “banking information, add cash, or cash out.”
Step by Step Guide On Using Cash App
- Before you make payments using your Cash App account, you need to have already set up a debit card or other type of funding source.
- For the fun part, let’s get you your debit card, you just need to follow the steps below;
- On your Cash App homepage, at the bottom of the screen, click on the “card” icon and this will take you to where you will create your debit card.
- You can pick a colour of your choice for your debit card and you will also need to signature the card in the bottom right hand corner.
- Once you have submitted, you will be asked where you want to ship your debit card.
- you will be asked to fill in your address , then confirm with your first and last name on the next page, the your date of birth on the page that follows, and finally, you will be required to set up the details of your new cash debit card.
- This card is not charged any fees with the exception of if you do cash out in an ATM, and then it is going to tax you a $2 fee. Putting that aside, Cash App account is basically a free account.
How Do I Send Money On Cash App?
Sending a payment on Cash App is a quick and simple process. All you need to do is follow these summarised steps in order to make your payment;
- You will need to open Cash App
- Enter the amount you want to send and Click “Pay”
- Enter the recipient’s phone number, email address or $Cashtag
- Put the purpose of the payment which can be for example, “morning breakfast” and click “Pay”
- And the payment has been made.
You need to be aware of the Cash App sending limits and these you can increase by verifying your account.
In case the recipient does not have a Cash App account and fails to open one, the money will be returned to your account after some time.
Read: How Do Banks Make Money
How Do I Receive Money On Cash App?
This session shows how to transfer money from a bank account to be received on a cash app.
The procedures that you will follow are the same procedures that you take when sending payment just that here you will be requesting the money.
To request money, select the “request” icon and enter the amount you want. Select who you’re requesting from. Once your friend accepts your request, they will have to follow some easy steps to complete the transaction.
Then you will be able to review the deposit made in your account in the activity feed. All payments you receive through Cash App will be stored on your Cash App balance.
When you receive money from someone, a notification will be sent to your activity feed showing that a deposit has been made in your account. This means that you need to check your activity tab in order to review the payment.
Tap on the payment that you want to see. What to do with the payment is up to you. You can cash out and send the money to your linked bank account or you spend it using your linked debit card.
In case you want to cash out, follow these procedures to guide you.
- First of all, tap the “Balance” tab in the app once you have opened the Cash App and Press “Cash Out.” You will then be required to enter the amount of cash you want and select a deposit speed
- Finally, confirm your identity via a touch ID or PIN.
There are two types of deposit speed options; “Standard deposits” which can take 1-3 business days to process and “Instant deposits” are which credited to your debit card immediately.
Note: Unlike the instant deposits where a fee is incurred, standard deposits are free
Is There Cash App For My Computer?
Using a computer to transfer funds through Cash App is much similar to when using your mobile phone. Whichever device you use to log in of the two, you will be able to access your Cash App account.
The procedures that are followed when sending money through Cash App using your mobile phone are the same procedures followed when sending it via a computer. However, most people prefer using the Cash App mobile app on a phone.
The only difference between the two methods is that you will be required to open the Cash App homepage in a new window on whichever browser you are using unlike for the mobile app where you just need to open the app.
Is A Bank Account Necessary To Transfer Money to a Cash App?
For verification purposes, the bank account will be necessary when you are signing up for your Cash App account which requires you to add a bank using your debit card.
However, the bank account will not be necessary when you are making cash transfers via Cash App account since you will be able to receive money directly to your Cash App account.
And withdraw it at any ATM even despite the fact that the bank account you used in signing up is not being used anywhere in the transfer and withdrawal process meaning that it is not necessary during the process.
How Do I Transfer Money From Cash App To Your Bank Account?
Transferring money from Cash App to your bank account is simple. It is normally called “cash-out”.
- First of all you need to open the Cash App on your iPhone or Android.
- Click the icon for “Banking” in the bottom-left corner (the icon looks like a house, or a bank, any building whichever name you call it.)
- In the “Cash Balance tab,” tap the icon on the right that; “Cash Out.”
- The “Cash Out” menu will pop up with your full balance amount that is ready for transfer. You can use the keypad to type in the amount of money that you want to transfer.
- Once you’ve decided how much you want to transfer, you can then tap “Cash Out” at the bottom.
- This will take you to a screen where you will be asked which method you would like to deposit the money. You can select “Standard,” which will take about 1-3 days for the money to appear in your bank account. But, if you need the money right away, you will have to tap the “Instant” icon and this comes with a 25 percent fee.
How Do I Add A Bank Account To My Cash App?
Adding a bank account to your Cash App is simple but also crucial since it is necessary for verification purposes when signing for a Cash App account. Follow the summary below to guide you on how you can add one to your Cash App.
Since you already linked the bank account to your Cash Account during the signing up process, we shall now just modify it;
- On your Cash App home screen /page, tap on the Banking tab
- You will be given options of whether to select “Linked Banks” or “Linked Accounts”
- You will need to click on the account which you want to modify
- Then, you can either remove the existing bank account by selecting “Remove Bank” or you can just replace it by tapping on the tab, “Replace Bank”.
Follow the instructions and you will be able to modify your bank account in Cash App.
What Cards Does Cash App Support?
It is necessary for us to know which cards Cash App supports, “debit or credit cards”.
The debit and credit cards of Visa, MasterCard, Discover, and American Express are some of the cards Cash App supports in addition to most government-enabled prepaid cards.
However, depositing money on government cards is not possible. Cards like PayPal, ATM cards, business debit cards among others are not supported by Cash App.
Having read the article below, we are so confident that it has been so helpful to you and most importantly, you should be able to open a Cash App account and also be able to make your first payment or your first transfer of funds via Cash App.
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Frequently Asked Questions
No, you can use Cashapp without a bank account.
A fee of 1.5%-3%
Yes, only you and the recipient/sender is made aware.
- Cash App: https://cash.app
- Wikipedia: https://en.m.wikipedia.org
- Bankrate: https://www.bankrate.com/
- Nerdwallet: https://www.nerdwallet.com/