Cash App has become one of the most popular money transfer apps, with over 70 million active users as of 2022. Its simplicity makes it easy to pay friends, family or splitting bills.
But how much does Cash App charge in fees? The short answer – it‘s free to send or receive money when using a debit card or bank account. However, additional services come with fees which can add up over time.
In this comprehensive guide, we‘ll overview all Cash App‘s fees and services to help you avoid any surprises. We‘ll also compare Cash App head-to-head with rival Venmo so you can decide which app best fits your needs.
Let‘s dive in!
Overview of Cash App Fees
The core functionality of Cash App – sending money to friends and family – is completely free. You can instantly send or receive money when linking your debit card or bank account. This flexibility and lack of fees makes Cash App popular for quick transfers.
However, Cash App charges varying fees for extra services:
- Peer-to-Peer Payments: 3% fee for credit card funding. Free for debit/bank.
- Cash Card: Out-of-network ATM withdrawals incur a $2.50 fee.
- Instant Transfers: 1.5% fee to transfer funds instantly to an external debit card.
- Investing: No trading commissions but government fees may apply.
- Bitcoin: 1.75%-2.5% commission when buying or selling BTC.
These fees add up, so it‘s important to be strategic in using Cash App to avoid excessive charges. We‘ll break down what to expect from each key service next.
Peer-to-Peer Payment Fees
Cash App‘s core function is free – you can send money to friends instantly without fees when using a debit card or bank account. This makes splitting bills and expenses extremely easy.
According to Cash App, over 70 million active users transmitted over $160 billion in payments in 2021 alone. The app facilitates instant bank-to-bank transfers 24/7.
The fees to watch out for:
Credit Card Transactions
- Fee: 3% of transaction total
- Example: Sending $100 using a credit card costs $3
This is because Cash App incurs interchange fees from credit card networks. Debit is fee-free.
- Fee: 1.5% of transfer amount (minimum $0.25)
- Example: Instantly transferring $100 incurs a $1.50 fee
Transfers to external bank accounts usually take 1-3 days but are free. Instant costs extra.
Cash Card Fees
The Cash Card is Cash App‘s free customizable debit card. It lets you spend your Cash App balance in stores or online wherever Visa is accepted.
Using the Cash Card itself has no fees – you can make purchases just like with any other debit card for free.
However, Cash App will charge you for out-of-network ATM transactions:
- ATM Withdrawal: $2.50 per transaction
- Other ATM Fees: Cash App does not reimburse fees charged by the ATM owner itself. This averages around $3 per transaction.
Based on this, a single out-of-network ATM withdrawal with Cash App can cost you roughly $5.50.
You can avoid this by getting cash back when making debit card purchases rather than using ATMs.
One unique feature of Cash App is free stock trading through Cash App Investing. You can buy and sell stocks with zero commission fees.
This makes investing incredibly affordable since you aren‘t paying a $5-$10 fee per trade.
However, some other fees may still apply:
- SEC Fees: $0.021 per $100 of sales
- Transfer Fees: $0.05 per share transferred out
- Paper Statements: $5 fee if requesting physical monthly statements
While trading is commission-free, government and transfer fees can occasionally apply. Be sure to pay attention when confirming transactions.
Cash App allows users to buy and sell bitcoin directly within the app. Prices are locked in once you confirm your purchase.
But each bitcoin transaction comes with a commission:
|Buying Bitcoin||1.75% – 2.5% of total purchase|
|Selling Bitcoin||Roughly 2% of total sale|
These fees go directly to Cash App and may be higher than some cryptocurrency exchanges. But the convenience makes it easy for beginners to invest in bitcoin.
For example, buying $100 worth of bitcoin would incur a fee of $1.75 to $2.50.
Cash App vs. Venmo Fees
Venmo is Cash App’s biggest peer-to-peer rival. How do their fee structures compare?
|Standard P2P Payment||Free||Free|
|Instant Transfer||1.5% (min $0.25)||1.5% (min $0.25)|
|Credit Card Transaction||3%||3%|
|Out-of-Network ATM Withdrawal||$2.50||$2.50|
|Bitcoin Purchase||Not Offered||1.75%-2.5%|
|Stock Trading||Not Offered||No commissions but other fees may apply|
The fees between the two apps are very similar overall:
- For basic bank/debit transfers, the apps are identical.
- Both charge 3% for credit card transactions.
- Instant transfers are the same 1.5% fee.
- ATM fees are equal at $2.50.
Some key differences:
- Cash App offers bitcoin and equities trading; Venmo does not.
- Cash App bitcoin purchase fees are steep at almost 2% of the total transaction size. Other exchanges may be cheaper.
- For investing, Venmo has no equivalent while Cash App offers commission-free trades.
The bottom line – Cash App and Venmo have near identical fees for standard peer-to-peer transactions. Cash App charges additional fees for unique services like bitcoin and trading. Depending on your use cases, one app may be more cost-effective than the other.
5 Tips to Avoid Cash App Fees
While some Cash App fees are unavoidable, you can be strategic to minimize them:
1. Use Your Debit Card
By funding transactions with your debit card instead of credit card, you avoid the 3% fee.
2. Get a Cash Back Rewards Card
Paying with a cash back rewards credit card offsets some of the 3% fee you‘ll incur.
3. Opt for Standard Transfers
It takes 1-3 days, but standard transfers to your bank are free as opposed to the 1.5% instant transfer charge.
4. Invest Small Amounts
Since there are no trading commissions, invest small amounts at a time to minimize SEC fees.
5. Use In-Network ATMs
By using an in-network ATM that partners with Cash App, you can avoid the $2.50 out-of-network fee.
A few other tips:
- Refer friends to Cash App and receive a $5 signup bonus each
- Take advantage of Cash App‘s free Boosts for saving money at merchants
- Set up direct deposit to have paychecks or benefits like social security automatically deposited into your Cash App balance.
The Bottom Line
Cash App dominates as one of the top money transfer apps thanks to its free peer-to-peer payments when using your debit card or bank account linking.
But Cash App does charge fees for certain services:
- 3% for credit card funding
- 1.5% for instant transfers
- Bitcoin purchase and sale commissions
- $2.50 for out-of-network ATM withdrawals
These fees are comparable to competitors like Venmo. The apps are nearly identical for standard bank/debit based transfers.
Ultimately Cash App is designed for quick convenient money sharing, not as a full bank replacement. By understanding its fee structure, you can avoid surprises and use the app in the most cost-effective way possible.