There have been many questions regarding if the cash app requires a clearance fee.
Does Cash App Have a Clearance Fee?
No, Cash App does not charge a clearance fee for transactions to send, request, or receive payments. It does not hold money and all transactions are instantaneous, while your bank may have its own fees for processing transactions with a 3% fee for credit cards and 1.5% for instant deposits.
There have been posts on Reddit and other Public forums about having won a giveaway they didn’t even participate and they want to send you the winner’s money.
Now they are asking to pay a clearance fee of 100$ USD as a clearance fee to clear the transaction and receive the thousands of dollars they want to give away.
Continue reading below as some can get confused with Clearance fees and actual Cash App fees.
READ: What Is a PVC Charge on Cash App? PVC Charges Cash App
Is there a Cash App Business account fee?
In revenue-generating scenarios, Cash App charges merchants’ business account a 2.75% fee every time it receives money through a business account, plus a 3% fee per transaction is applicable for transacting using a credit card.
Similar scams are Cash App attorney Fee and Send Me Your Cash App information Scam.
If you didn’t already know, a clearance fee is a fee that is charged by either your bank or the payment/ service issuer to basically clear the amount.
Such a fee is mostly used by brokers in trading. During the transaction, a small fee is charged as a part of the clearance fee.
What is a Clearance Fee?
A clearance fee is a fee that is required for clearing and completing transactions using its own facilities. It is a fee to help settle the payment and is used by banks, customs, and brokers.
Clearance fees are a small amount of the total payment to clear the trade or payment.
A clearing charge or clearance fee is a fee charged by the broker or an association before delivering the service or payments. The broker pays this fee to the professional clearing member who then helps them settle the trades with exchanges.
Does Cash App Charge a Fee?
Yes, Cash App charges a fee of 3% if you use a credit card for sending money, however, it is free to make payments with a debit card and bank account. Cash App also charges a 1.5% fee for Instant Deposits from Cash App balance to your debit card.
When it comes to basic transactions, like sending or receiving money between Cash App accounts using a debit card or Cash App balance, the payment transfer platform is free.
Does Cash App Charge a Fee to Receive Money?
No, Cash App doesn’t charge fees to receive money from other Cash App users. Cash App doesn’t charge for basic services like Sending money from a linked bank account, debit card, or your Cash App balance.
Receiving/withdrawing money into your Cash App account or using our standard transfer to your bank account. Cash App also has NO monthly or annual fees.
Does Cash App have a clearance fee?
Cash App has no charges for Sugar Momma and Sugar Daddy clearance fees for transactions between Cash App users. It does not charge service fees on money transfers. The company prides itself on being transparent about its fees, and no clearance fee is charged.
Cash App Sugar Daddy clearance fees are a scam.
In most cases, there are only two scenarios where Cash App will charge you.
1) Sending money with Credit Card – If you are sending money using a credit card linked to your Cash App, a 3% fee will be added to the total fee.
It is because, unlike debit cards, credit cards have a transaction charge and so if you are sending your friend $100, the total will cost $103.
2) Opt for Instant Transfer – The other charge will be the 1.5% commission added if you opt for instant transfers rather than the standard option from the app to a bank account.
However, this charge can be avoided b opting for a standard transfer, which usually takes 2-3 business days to credit to your account.
>> Read: Can I Use Cash App Card at ATM? Fees and Withdrawal Limit
Apart from the above two, there are not any charges that we know of.
What is a Clearance fee on Cash App?
Cash App clearance fee is a non-existent fee from Cash App where basically scammers try to take advantage of the app users.
Here is how it works – For example. You will be contacted and told that you have won $4,500.00 from a Lottery but you will need to pay the clearance fee of $200.00 to get your $4,500.00.
Usually, once you paid them, they will block you and it will be too late once you realize it’s a scam because you will not receive the winning lottery money.
>> Read: How To Change Cash App From Personal to Business Account?
This scam is quite popular with the name of Cash App sugar daddy clearance fee scam.
Cash App clearance fee Sugar Daddy Scam
Sugar daddy scam on Cash App occurs through the usual culprits i.e. social media such as Twitter, Instagram, Facebook, Craigslist, and Reddit are the typical breeding ground for various scams not limited to just Cash App scams.
So, try to be aware and be careful of how you interact with people on social media.
The keyword “hack” or free money in exchange for sending them a payment first is the only hint required to identify it as a scam. Always be careful of people promising you free anything.
They promise you something < take your money < and disappear.
Is there Cash App business account fee?
Cash App has a fixed charge of 2.75% for receiving money through a business account. There are no monthly fees for opening a business account. Applying for a business account can be done in a matter of minutes from your mobile phone.
No, there is no Clearance fee for Cash app business accounts too. But Cash App does charge a 2.75% fee when you receive money through business accounts from their customers.
However, Cash App does not hold any amount and asks to pay a clearance fee to receive the payment.
Apart from the above-mentioned charges of a 3% fee when you make any transaction using a credit card, the 1.5% fee for instant transfer, and the 2.75% fee when you receive money through business accounts from their customers, There is no kind of fees like clearance or automatic deposit fees on Cash App that we are aware of nor hinted anywhere else.
How to Recognize and Avoid Scams?
- Never ever send payment to anyone promising something in the future for money (eg. free or flip money in return).
- Send payments to only contacts who you trust.
- Make sure to Verify and double-check all the recipient information before sending money to confirm that you are sending money to the correct person.
>> Read: Are Cash App Flips Real? Cash App Flip Scam – How to Avoid Them?
Clearance fee on Cash App
There is no clearance fee on the square-owned Cash App. However, when you choose an Instant Transfer, it charges 1.5% for an instant deposit to a bank account. To avoid the fee, you can opt for Standard bank withdrawals, which take 1-3 business days, and they are always free.
Cash App does not require you to pay a ‘clearance fee’ and it is the same for Paypal as they already charge a fee when they deduct the fee when you receive the payment into your account.
So, any cash app user claiming to pay a fee to magically increase your money or pay for your goods and services, chances are they are a scammer.
The best option is to just avoid them.
More Cash App Scam Types
- Fema Scam
- I Got scammed on Cash App: What Should I do now
- Can You Get Scammed With Bitcoin on Cash App
- Drop Your CashApp Tag Scam: How to Avoid Falling for It
- Cash App Potential Scam Warning Message
- 3 Common Cash App Scams on Facebook Messenger
- What is Send Me Your Cash App Information Scam
Final Thoughts:
So, the next time someone contacts you and asks to pay the clearance fee or the automatic deposit fee to receive your so-called lottery money which you never participate in the first place, you know what to do, either just block them, don’t reply, or kindly say “thanks, not interested!”
All these fees have no connection with the Cash App payment app. Simply ignore such kinds of messages, emails, or phone calls.
If you have been scammed in this context before, my heart goes out to you and we all make mistakes, you just have to learn from it and avoid falling into it again.
That being said, if you have any queries that you would like to know, kindly let us know in the comments below. We will try our best to help you out!
