Editor’s Note: Overdraft Apps provides detailed product reviews and recommendations based upon extensive research and our own hands-on testing. We may earn a referral fee when you sign up for or purchase products mentioned in this article.
From the providers of the free Square card reader and payment system comes Cash, an easy way to send money between friends. What is the Square Cash app about and what can you do with Square Cash? What is the most you can receive, send and spend using a Square Cash account? Keep reading to find out everything you need to know about Cash App, including the Cash App limit.
How the Cash app works
Square Cash is an easy way to send money to a friend, colleague or acquaintance – instantly. All you need is a payment card or bank account. The Cash app is available to both iOS and Android users. The minimum age to use Cash App is just 13, making it a good option if you’re looking for a debit card for teens.
You can access all Cash features from the app itself including a history of payments made and received. Though Square Cash is free for personal use, Square makes its money by charging fees for business users that use Square to accept card payments via a device.
How to add money to Cash app card
You have two options to top up your Square Cash account. First, you can make direct deposits into Square Cash. For direct deposits you have a couple of choices:
- Use your credit or debit card. Square Cash supports account top-ups via major US-issued cards including AMEX, Discover, Masterard and Visa. You just need your full card details and your billing ZIP code.
- Use your bank account. Don’t like the idea of using your debit card every time you top up Square Cash? You can add your US bank account as a funding source on Cash. Square Cash will instantly withdraw the amount from your bank account.
- Deposit your paycheck. Another option is to simply get your paycheck deposited in your Square Cash account. Just provide your Square Cash direct deposit account details to your employer and you can receive your pay into your Cash App Balance.
Another option is to use Square Cash to receive payments. Any payments you receive from friends or family will be added to your Cash balance. Instead of swapping cash or bank details you can simply accept payments with Square Cash. You can also request money from another Square Cash user.
Cash app transfer limit
As a peer-to-peer (P2P) payment platform Square Cash must put in place limits to prevent fraud and abuse. The Cash app has two types of transfer limit:
- A limit requiring ID. You can send up to $250 in a single transfer, or as multiple transactions in any seven-day window before Square Cash will demand further identification. You can receive up to $1,000 per month too. Once you provide ID (by linking the Square Cash app to your Facebook account for example) you will have more headroom for Square Cash transfers.
- Maximum Square Cash limit. Prove sufficient ID and Square Cash will lift the limits on receiving cash. However you are still restricted by a $2,500 cap on sending money in a single transaction, and an overall cap in any rolling seven-day period of $2,500 in money you send P2P.
Note these caps only apply to P2P payments. So, you are subject to caps when you send money to another Square Cash user. Use of a Square Cash debit card is not subject to the same sending limits.
Cash App fees
You’ll be glad to know that you can send and receive money using the Square Cash app free of charge, as long as it is for personal use. However you will be charged a fee for some transactions. Here’s how it works:
- Sending money using your bank account as funding source is free of charge
- It’s free to receive money as a personal Square Cash user
- Sending money using your credit card as funding source incurs a 3% fee which is paid by you
- You pay 1% if you request an instant withdrawal
So, for the most part Square Cash is free to use, but Square Cash will pass credit card merchant charges on to you if you send money with your credit card as funding source.
Cash app debit card
The Cash App offers the option to obtain a Visa debit card alongside the Cash app account. With this card you can pay at any merchant that accepts Visa cards. It’s a handy way to help you spend your Square Cash balance, and it makes the Square Cash app a more useful product. You cannot overdraft your Cash App debit card.
In effect, you can use Square Cash as your bank account if you wanted to as you can deposit your pay into Square Cash, and use the Cash app’s linked debit card to make everyday payments. As we stated earlier, Square Cash publishes no hard limits on spending using your Square Cash debit card, unlike the $2,500 limit imposed on Square Cash P2P payments.
WAIT! High overdraft fees aren’t the only way your bank is costing you money.
With inflation overheating, you’ve probably heard that interest rates are climbing sharply. That means that for the first time in years, it’s a great time to shop around for a high interest savings account.
The national average interest rate for savings accounts is currently 0.23% APY – that means that if you have $2,500 in a savings account, you’d earn just $5.76 after one year! Move those hard-earned savings to an FDIC-insured bank paying 3.50% APY and you’d earn $81.73 more!
Don’t let your hard-earned savings sit there doing nothing. Check out the rates that you can earn at other banks:
Mitchel holds a Bachelors of Business Administration in Finance from The Goizeta School of Business at Emory University and a Masters of Business Administration from The Haas School of Business at The University of California.
- Beem Cash Advance App Review – Big Promises, Questionable Practices - September 29, 2023
- Shop Online and Pay with Your Checking Account Number: Consumer Guide [2023] - September 28, 2023
- Albert App Review: $250 Cash Advances + “Genius” Financial Advice in One App - September 16, 2023
