Have you ever wondered how much Cash App charges for your transactions? Keep reading this article as we discuss the fees and percentages of Cash App
Does Cash App Take a Percentage?
Cash App takes a percentage of 3% credit card and 0.5% -1.75% fee (with a minimum fee of $0.25) for Instant Deposit to arrive the funds instantly to your debit card.
For example, if you send $500, you will pay $515 after incurring the total 3% added to the total amount. Cash Also Charges a fee of 1.5% for Instant Deposits with a minimum fee of $0.25.
| Transaction Type | Cash App Fees |
|---|---|
| Instant Deposit | 1.5% |
| Standard Deposit | Free |
| Instant Transfer | 1.5% |
| Standard Transfer | Free |
| ATM Withdrawal | $2.50 |
| Cash Card Purchases | Free |
However, many Cash App transactions are free, but we’ll get into that later.
Cash App is an app that allows you to send and receive money. The thing that makes it stand out from the regular bank transfer process is the convenience.
Read: Square Cash App Instant Deposit Fee Calculator Tool
Standard Deposits
As we mentioned before, Cash App charges a 3% fee when you’re depositing money into your bank account or sending money to someone else.
However, that fee only applies if you’re using a credit card. However, if you use a debit card or a bank account to make those transactions, they would be completely free.
Refer here for Cash App Business account fees if you are a merchant and use the app for your business.
Instant Transfers
Cash App offers its users another great feature, which is instant transfer.
The standard transfers through Cash App take 1-3 business days to complete, on average. And if you’re in a hurry or just don’t feel like waiting, Cash App offers you the option to deposit your money to your linked debit card instantly.
The extra service doesn’t come free, though. In exchange for not wasting your time, Cash App charges a 1.5% fee on its instant transfer feature.
And if you ask us, that’s not a bad deal. An extra few bucks in exchange for quick and smooth transactions sounds like a win-win situation.
Read: Why is My Debit Card Not Accepting Instant Deposits?
How Does Cash App’s Percentage Compare to Other Similar Companies?
Are the fees Cash App charges too much? And how do they compare to their competitors?
When we looked at other money transfer software, we found out that Cash App’s fees are fair and pretty standard for the services it offers, which would explain their massive success.
An application that’s based on ripping its users off would have never been able to take off as Cash App did. And the fact that Cash App has almost 60 million downloads and over 30 million monthly active users shows that the application is trustworthy.
And while scams are common on all money transfer software, they always happen to be a user-to-user process. So you would never have to worry about any complications regarding your money on Cash App’s side of things.
Are the Extra Fees You Pay Worth It?
An important question presents itself here. Is it worth paying the extra money rather than going the old-fashioned way and transferring money through a bank?
We can’t give you a definite yes or no since it’s up to you which services you feel comfortable with and prefer using at the end of the day.
What we can do, though, is present some arguments for why we think that the Cash App fees are worth it.
Cash App Saves Your Time
Let’s say you need to transfer some money to your friend; you have two options here. One, you could fetch your phone, go on the application, adjust the amount you’re sending, and be done in a quick couple of minutes.
The second option allows you to avoid paying the fee. But it involves getting dressed, leaving your house, and going to the bank. And then you’d be paying an indirect “fee” anyway in gas money and time.
Cash App Saves Your Money
If you think about it, the extra fees of Cash App could, in a way, be saving you money.
If you’re depositing a small amount, therefore paying a small fee, it would be a wiser financial decision to use Cash App rather than commute to the bank. If you live 15 minutes away from the bank, you could be paying around $5 to $20 for transportation, depending on how you get there. That’s too much compared to the $3 you would pay Cash App to deposit $100.
This is all in addition to the free services Cash App offers, which means you get the convenience at no cost at all.
Free Transactions on Cash App
While you need to pay for some transactions when using Cash App, as mentioned above, many are for free.
For example, a standard deposit from Cash App into your bank account is completely free.
There is a free ATM withdrawal option where Cash App instantly reimburses ATM fees for customers who get $300 (or more) in paychecks deposited into their Cash App account each month. To learn more about this feature and how to activate it, you can visit this page.
Moreover, there are no fees to send or request payments outside your region using Cash App.
Frequently Asked Questions
What is the fee for instant deposits on Cash App?
The fee for instant deposits is 1.5% of the total amount that you’re depositing. So, if you’re depositing $400, then you’ll have to pay a fee of $6.
Do business accounts on Cash App incur fees for receiving money?
If you’re using a business account on Cash App, there are no fees for receiving money on Cash App, whether you’re using a personal or a business account. However, keep in mind that there are fees for other services, like instant deposits and cashing out.
Final Words
Cash App charges either 3% or 1.5% based on the transaction you choose to make, which, If you ask us, is a small price to pay for the convince the app offers.
So what are you waiting for? Go and sign up for a Cash App account now.
