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Cash App is a financial services platform owned by Block. Previously known as Square Cash, the app makes sending and receiving money between Cash App users easy. Other services include direct deposit, ATM withdrawals and investing in stocks and Bitcoin.
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Users can download Cash App, set up an account and make many transactions for free. Other transactions require a small fee, which, depending on the type, can range from 0.5% to 3%. A transaction fee of up to $2.50 may apply to ATM withdrawals using a Cash Card*. Here’s what users need to know about those fees and what they can do to avoid them.
How Much Does Cash App Charge To Cash Out Funds?
If you need to withdraw funds from Cash App, there are two ways to do so: a standard Cash Out or Instant Deposit. Customers with a Cash Card can make ATM withdrawals.
Cash Out Standard Transfer
There is no fee for a standard deposit to a user’s linked bank account. However, the transaction can take one to three business days.
Cash App Instant Transfer Fee
If a user opts for an instant deposit, Cash App charges a fee of 0.5% to 1.75% to transfer the funds to a linked bank account. There is a minimum charge of $0.25, and the exact cost will appear on your transfer screen during the transaction. Most Instant Deposits are available within minutes.
ATM Withdrawals
If you sign up for a Cash Card, you can withdraw money from your available Cash App balance at an ATM. Cash App charges an ATM withdrawal fee of $2.50 at in-network and out-of-network ATMS, and the ATM operator may charge an additional fee, too.
If you receive at least $300 in monthly direct deposits, Cash App waives its ATM withdrawal fee for in-network ATMs for the following 31 days. Cash App will reimburse ATM fees for one out-of-network ATM withdrawal per 31-day cycle for customers who receive a minimum of $300 in monthly direct deposits.
Cash App Fee for Sending Money
There are no fees for sending money from the available balance in a user’s Cash App account, linked debit card or bank account. However, if you deposit paper money to your Cash App account at a participating retailer, a $1 fee applies. Sending money to your Cash App account from a credit card incurs a 3% fee.
Does Cash App Charge Investing Fees?
With Cash App’s investing feature, users can buy and sell stocks and Bitcoin. The app makes both processes easy, allowing users to choose the stocks they want to invest in, set target prices, set up recurring buys and view key metrics for more informed investing decisions.
There are no Cash App fees to open or maintain an investing account, nor does Cash App charge fees per trade. However, governmental agencies and brokerages may charge trading or administrative fees.
While there aren’t any Cash App fees for buying or selling stocks, there may be one for buying or selling Bitcoin. Selecting an expedited withdrawal instead of a standard one could also subject users to a network fee. The fee depends on the amount of blockchain congestion and will be listed before you finish the transaction. If the transaction involves a fee, you’ll see a summary of your costs on the withdrawal confirmation screen before completing the transaction, which means you could make adjustments to avoid a Bitcoin withdrawal fee.
Is There a Fee To Use a Cash Card?
Cash App users can order a prepaid Visa Cash Card, which can be physical and digital. This card lets users make purchases using their Cash App balance in person, through the tap-to-pay option or when making online purchases anywhere that accepts Visa.
The Cash Card is free to order and can be customized, but it will cost a user $5 to change the design once they receive the card.
Cash App may also charge users up to $2.50 for using a Cash Card to withdraw money from an ATM. That’s in addition to any fees charged by the ATM.
Once a user reaches $300 in qualifying direct deposits, Cash App will waive its ATM fee for in-network ATMs and reimburse one out-of-network fee in a 31-day period. Each time you receive an additional $300 in direct deposits, that window is extended for another 31 days.
If you use your Cash Card outside the U.S., you won’t pay any foreign transaction fees. However, retailers or other financial institutions may charge one.
Cash Card does not offer overdraft or credit features as a prepaid banking solution. It will simply decline if you don’t have enough money in your Cash Card account for an ATM withdrawal or point-of-sale transaction.
Business Cash App Fees
In addition to the fees covered above, business Cash App users will run into business transaction fees. As a merchant, you can accept payments from customers through Cash App at a 2.75% fee. The fee is automatically deducted from each transfer.
How To Avoid Cash App Fees
No one wants to pay more in fees than they have to. Below are some tips to help you limit the fees you face through Cash App.
- Read the fine print: As you navigate Cash App, make sure to understand the fee structure. With this knowledge, you can make strategic decisions to help you avoid fees.
- Be patient: An instant transfer can help you solve a cash crunch, but the fees can add up. If possible, always opt for a standard transfer to keep your fees minimal.
- Avoid funding with a credit card: Using your credit card for Cash App payments comes with a 3% fee. If possible, use another funding method for transactions.
- Set up direct deposit to avoid ATM fees: A direct deposit of $300 can help you avoid ATM fees charged by Cash App.
Final Take
Cash App makes it easy for users to send and receive money, transfer funds to their bank account and even start investing. While some fees are associated with certain transactions, that doesn’t mean a user needs to pay them. Actions like choosing standard speed transfers and sending money using a debit card can help users avoid paying anything to use the app.
Cash App Fees FAQ
Here are some commonly asked questions about Cash App fees.
- Why does Cash App charge fees?
- Like any business, Cash App must earn money to support its operations. Cash App facilitates customer access to the features they want by charging certain transactional fees.
- How much does Cash App charge for $100? $500?
- How a user withdraws the $100 will determine if there will be any fees. While a standard transfer is free, an instant transfer costs between 0.5% and 1.75% of the transaction's value. A customer who initiates a $100 instant deposit may pay anywhere from $0.50 to $1.75 for quick access to their cash. Likewise, an instant deposit of $500 would cost between $2.50 and $8.75.
- What about spending money? Using a Cash App balance or linked bank account, there are no additional fees to spend $100 or $500.
- Can you avoid Cash App fees?
- Here are a few ways users can get around Cash App fees:
- Selecting the standard delivery speed when they cash out
- Receiving $300 in monthly direct deposits via a Cash Card account and avoiding making more than one out-of-network ATM withdrawal every 31 days
- Sending money or paying for purchases using a linked bank account or debit card
- Selecting standard withdrawals instead of expedited ones to avoid additional fees associated with buying or selling Bitcoin
- Here are a few ways users can get around Cash App fees:
- Why is Cash App asking for a fee?
- If you try to withdraw your Cash App balance via an instant deposit, you will incur a fee ranging from 0.5% to 1.75% of the transaction. You can avoid the fee by using the standard transfer to your bank account, which takes one to three business days to settle.
- Why is Cash App charging me to receive money?
- Cash App charges a small $1 fee to consumers who add paper money to their accounts via a participating retailer. Adding cash via direct deposit or linked bank account should not result in a fee. However, if you have a Cash App business account, you'll incur a 2.75% processing fee for any customer payments you receive.
- Does Cash App charge a fee?
- While some transactions are free, Cash App does charge a variety of fees. For example, an instant transfer to your bank account comes with a fee of 0.5% to 1.75%. But if you are able to wait for a standard transfer, which arrives within a few days, you can avoid this fee. Make sure to read the fine print to avoid any surprises as you navigate Cash App.
- Do you have to pay a fee to receive $3,000 on Cash App?
- If you receive $3,000 through Cash App that you want to transfer to your bank account, you can do so for free through a standard deposit. If you aren't able to wait one to three business days for your standard deposit to arrive, an instant deposit to your linked debit card involves a fee of 0.50% to 1.75% of the transaction amount. For a $3,000 transaction, the fee could range from $15 to $52.50.
Sarah Sharkey and Jessica Moore contributed to the reporting for this article.
Information is accurate as of Mar. 26, 2024.
*Prepaid debit cards issued by Sutton Bank.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
