Are you a new user of the cash app? Then learn about some basics regarding its usage and benefits over other similar apps.
As the world is evolving with technology, ‘cashless’ cash transactions are becoming a thing. Moreover, the pandemic has doubled the demand for cashless transactions in the past few months as people have increased levels of health concerns. Not only for this reason, but cashless transactions are equally convenient.
To meet your convenience and safety, the tech industry is taking advantage and inventing such apps that can be used from smartphones. One such app is called Cash App, which is used for cashless transactions like sending and receiving money, savings, investing stocks, and many more. If you are curious about knowing the service, usage, and benefits of Cash App, then keep on reading below.
What is the Use of Cash Apps?
As complicated as it may sound, Cash App is a very simple app mainly used to send and receive money from peer-to-peer. Cash App was developed by Square Inc. for money transactions within the same country. With Cash App, you can shop, pay bills, send money, receive a salary, buy and sell bitcoins, and invest in stocks.
So, How to add money to Cash App Card? Simple, you can link your bank account and transfer money from the bank to your Cash App account. If your employer pays the salary in your Cash App, similarly, you can transfer the balance from the Cash App to your bank account. The convenience of using a Cash App over a bank is that you don’t require to carry a card everywhere.
How Does Cash App Work?
The main function of Cash App is to receive and send money to other Cash App users. For this step, first, you need to punch the dollar sign icon that will appear at the bottom of the app to open it. Enter the amount you want to send, and then confirm. Next, enter the person’s ‘$cashtag’ phone or email and send the money.
You can also enter a small note to let them know the reason you are sending the money. You can view your transaction activity in the ‘Activity section of the app. There you will get the list of daily, monthly records of incoming and outgoing deposits.
Caution: While you are providing the recipient’s $cashtag number or email, make sure you cross-check it before final submission. If you mistakenly send it to the wrong person, there is no way of getting it back unless the person willingly sends it back to you.
Benefits of Using Cash App
Let us get to know some advantages of using Cash App and give you some explicit reasons for using it and going cashless.
- Allows You to Invest in Stocks: Not only can you send and receive money with this app, but you can also invest in stocks of as many companies as you want. The stocks are to be purchased with the balance you have in your Cash App; however, if you don’t have enough balance, you can pay it off from your bank account linked with Cash App.
- You get a Bonus for Referring A Friend: If you refer Cash App to a friend with Cash App’s referral code, and your friend signs up for Cash App using that referral code, then you will receive a $5 bonus for this. The more you refer your friends, and they sign up, you get a bonus of $5 every time.
- Has the Advantage of Debit Card: You can get yourself a free debit card if you want to withdraw money from your Cash App account. Sutton Bank provides the card, but it can’t be linked with your bank account or debit card. This debit card is not mandatory.
- Free ATM withdrawal (with the condition applied): You can access free ATM withdrawal with Cash Card only if you set up a direct deposit. If you don’t set up this function, you will have to pay a fee of $2 to use an ATM.
- No Service Charge on Basic Usage: The best part about Cash App is that you don’t have to worry about paying hoards of fees to enjoy the basic services, like sending or receiving money, monthly charges, or inactivity fees.
- You Can Buy & Sell Bitcoins: You can trade one of the largest cryptocurrencies in the world, bitcoin, using Cash App. But the only drawback is it requires two types of fees to make this transaction. One is the service fee for buying or selling bitcoin and an extra fee for the price instability of bitcoin in the US market.
Drawbacks Of Cash App
Every great thing has drawbacks, and so does Cash App. So let us go through some of its potential drawbacks.
- There are limits on Cash Card Usage: While you can use the Cash Card for spending and withdrawing money, there is a limit on your usage. Your monthly limit to spend money from the Cash Card is $25,000. Whereas your weekly withdrawal limit is $1,000, up to a maximum of $4,000 a month.
- You have to pay fees to use a linked credit card: If you use your Cash App-linked credit card for a transaction, then you will be required to pay 3% fees on the total payment. While this may not seem a big deal for small transactions, it will be expensive for something large. Therefore, to avoid this fee, you can use the funds directly from your Cash App, or your linked bank account.
So, this was all the information you needed to know about Cash App. It surely is a helpful and convenient app for daily use. Once you start using it, we assure you that you will forget cash transactions. If you haven’t started using Cash App yet, it is the right time to do so.