Is Cash up App Legit? – Cash App Review


Introduction to Cash App 

If you are aware of PayPal or Venmo, the chances are high that you will be aware of the Cash App. It is a mobile payment app launched in the year 2013. The app owner is Square Inc., and the App was initially called Square Cash. Since its launch, the application has introduced many services other than peer-to-peer money transfers and made a gross profit of $385 million during 2020. 

The primary feature of the Cash App is to make money transfers quick and hassle-free. Apart from this, it offers other services of a bank as well. The App provides its user with a debit card and a bank account. The use of the debit card is not restricted to the application only. You can use this card at ATMs to withdraw money or make payments at vendors. Another exciting feature is that the Cash App also acts as an investment platform where you can buy Bitcoins or invest in stocks.

The additional features make the Cash App different from other payment service providers. Although some of these additional services are chargeable, users find it convenient to get all their work done on a single platform. However, there are some drawbacks to this App that could make you rethink your decision on the use. To learn where you can load a Cash App cardOpens in a new tab., please read our article.

Is Cash up App Legit?

Yes, the cash app is a legit application insured under the FDIC. The Cash App has added some security levels to help users protect their accounts from misuse. Your payments are secured by Face ID, Touch ID, or PIN. Only you or anyone aware of these security features can access your account for payments.

Along with this, you can pause the Cash App debit anytime from the App, in case you have misplaced it somewhere, or it gets stolen. Another security feature is the notifications sent to the user’s registered email and mobile number whenever their account is used.

Cash App Security and Protection 

As convenient as it may be to use a payment application, like Cash App, to transfer money on the go, it is equally important to make sure that the platform you are using is secure and protected. Just like other major credit card companies, Cash App is PCI-DSS certified. Your transactions are encrypted on both ends and are protected according to PCI standards.

However, there is a limitation to the level of security Cash App has to provide for its users. Before adding money to the Cash App, users must know that the application is not insured under the FDIC, which is very important for depositors to obtain. Without this insurance, the users’ funds deposited on the App are not protected from fraudulent activity. This turns out to be a big drawback, and it becomes difficult to gain users’ trust. 

 

Cyberspace is full of hackers and data thefts. So, you can never be 100% sure about the security and protection of your data and funds on an online payment platform. Therefore, it is the responsibility of both the user and the application owner to be aware of such activities. Keep your information confidential, and do not share it with anyone. Make sure to verify the accounts before transferring the money. 

Cash App Sign-Up Process

Signing up on Cash App is not rocket science. It is very quick and easy and requires some of the mandatory information from its users before they start using the App. 

To register with Cash App, you need to fill in your basic details like your name, phone number or email address, and ZIP code. With this, your account gets activated on the Cash App. After registering, the next task is to create a unique username for your account, which is termed as ‘$Cashtag.’ Your unique $Cashtag is the link to your account through which others can find you, and you can receive and send funds. 

To use more services through Cash App, users must complete their account verification by filling in more information, like their bank account details. This will enable users to increase the limit of funds they can receive or send from their accounts. Cash App also provides a free debit card for its users, which they can register through the App. Once you receive your debit card, you can start using it anywhere where Visa cards are accepted. 

This debit card is connected to your Cash App balance, and its use is reflected on your account. You can use it to make payments or withdraw cash from ATMs, for which Cash App charges a flat fee of $2. 

Cash App as an Investment Platform 

The additional services that Cash App provides are investment services. It is a certified broker that is a member of SIPC and FINRA, therefore, providing a regulated investment platform for its users. If you are a beginner at investment, then Cash App is an ideal place for you. You can choose from a wide variety of stocks to prepare a portfolio or buy Bitcoins. The following are the features that Cash App offers to its users as an investment platform:

  • Investors can place a custom order on Cash App. This feature keeps a check on the market price of the Bitcoin or stock and proceeds with the purchase only once it reaches the target set by the investor. 
  • Investors can also put their investment on auto-pilot. This means that they can buy stocks or Bitcoins at a fixed interval through Cash App. This will gradually increase their investment. 
  • Cash App also provides users with insight into the investment market through regular news and notifications about different stocks and their price changes. 

These features make it ideal for a new investor to be able to start their investment journey. However, there are certain limitations due to which pro investors may not consider the Cash App to manage their investments. The primary reason behind this is the absence of investment options. Cash App does not offer investment opportunities in mutual funds, options, or advanced investment management features that most investors would prefer. 

Moreover, the investment in highly volatile assets, like Bitcoin, requires exchanges equipped with advanced security tools. Therefore, users should reconsider before buying Bitcoin on Cash App. 

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How To Transfer Money On Cash App

Send and Receive Money

With Cash App, users can send and receive money very quickly. They have to open the App select the receiver by their phone number, name, or $Cashtag. After that, they can enter the amount they want to send and click on ‘Pay.’ Cash App will send the notification to the receiver so that they can accept the payment. 

Cash App gives you an option to receive money from your Cash App balance (to which your Cash App debit is linked) or your bank account. The transfer is reflected instantly in your Cash App balance, while it takes 3-5 working days for a bank transfer. However, if you want an instant transfer to your bank account, you can get it done by paying a fee of 1.5% of the transfer amount.

  • Request Money on Cash App

With Cash App, you can also request money from anyone. All you have to do is enter the amount you want to request, then click on the ‘Request.’ After that, you have to select the person you want to send the request to and its reason. Click on the ‘Request’ on the top right corner, and Cash App will send the transfer request to the person.

The receiver of the request will receive a notification on their registered email or phone number through which they can proceed to make the payment. 

  • Transfer Limits

The transfer of money is limited for those who do not complete the account verification on the Cash App. You can receive a maximum of $1,000 in 30 days and send only up to $250 a week. If you complete your identity verification on Cash App, this limitation increases by providing your Social Security Number’s last four digits and date of birth. 

Final Thoughts

Cash App is a platform that has made money transfers and investments a few clicks. Being able to perform both tasks on a single platform without going through the registration process on different apps has made it highly convenient for users. The debit card and transfer request feature can attract more users. 

However, the security of the Cash App is still questionable due to the absence of FDIC insurance. This may make its users reconsider the idea of registering with the App.

Igor Milosevic
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