What Is Cash App? A Complete Guide for New Users
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Cash App is a popular mobile payment app that lets you send, receive, and manage money right from your phone. You can use it to pay friends, get paid faster, invest in stocks, buy Bitcoin, and even access loans through Cash App Borrow if you qualify. Whether you’re splitting bills, managing a side hustle, or looking for a simple digital banking tool, Cash App makes handling money quick and convenient.
This guide explains what Cash App is, how it works, and how to use its most important features—like Cash App Pay, the Cash Card, Pools, and security tools.
What Is Cash App?
Cash App is a mobile payment service created by Block, Inc. (formerly Square) and can be accessed through the free Cash App mobile app. It works like a digital wallet, letting you:
- Send and receive money instantly
- Buy things online or in stores
- Use a Cash App Card (a free Visa debit card)
- Invest in stocks and Bitcoin
- Access small loans through Cash App Borrow (if eligible)
- Create group payment pools for shared expenses
- Get paid through direct deposits from employers or clients
You don’t need a traditional bank account to open Cash App, but linking one gives you higher limits and more features.
What bank is Cash App?
Cash App has millions of active users and has grown into one of the most-used peer-to-peer (P2P) payment tools in the U.S.. It’s banking services are provided through partner banks, including Sutton Bank and Lincoln Savings Bank. These are the bank names you’ll see when you set up direct deposits or connect Cash App through a service like Plaid.
Setting Up Cash App
Setting up takes just a few minutes.
- Download the app Get Cash App from the App Store (iOS) or Google Play (Android)
- Create your account Enter your email or phone number and verify with a confirmation code.
- Choose your $Cashtag Your Cash App tag, or $Cashtag, is a unique username others use to send you money (for example: $JohnW87).
- Link a bank account or debit card Linking lets you add money, transfer funds out, receive direct deposits, and unlock higher limits.
Tip! If you run a small business or side hustle, understanding how payment apps fit into your books is key. You can learn more in this guide to small business bookkeeping.
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Invoice Fly is a smart, fast, and easy-to-use invoicing software designed for freelancers, contractors, and small business owners. Create and send invoices, track payments, and manage your business — all in one place.
How Cash App Works
Cash App works like a mix between a wallet and a simple online bank.
Sending and Receiving Money
To send money, enter the person’s $Cashtag, phone number, or email. Money usually arrives instantly. When you receive funds, you can keep it in your Cash App balance, transfer it to your bank, or spend it with your Cash Card.
Cash App offers two transfer options:
- Standard transfer: Free, takes 1–3 business days
- Instant transfer: Arrives immediately but includes a fee around 1.5%
Tip! Explore how automated invoicing can streamline your payment process.
Cash App Accounts and Banking Features
Cash App provides account and routing numbers for direct deposit, ATM withdrawals with the Cash Card, and savings tools to set aside money.
What is Cash App bank name and address? Cash App uses Sutton Bank (1 South State Street, Attica, OH 44807) and Lincoln Savings Bank. Use these names when employers ask for direct deposit information.
Cash App Card and Payments
What is Cash app card? The Cash Card is a free Visa debit card that lets you spend your Cash App balance anywhere Visa is accepted.
What ATM is free for Cash App? Cash App charges $2.50 at ATMs. If you receive $300+ in direct deposits monthly, Cash App waives fees at in-network ATMs and reimburses one out-of-network withdrawal every 31 days.
Cash App Pay and NFC Options
Cash App Pay lets you pay with QR codes or tap-to-pay at stores. Your bank details aren’t shared with merchants, making it safer than handing over a physical card.
If you’re using Cash App to get paid for freelance work, combine it with online payments so clients have multiple payment options.
Cash App Pool
What is Cash App Pool? Cash App Pool lets groups collect money for shared goals like group trips, rent splitting, birthday gifts, or team events.
How to Create and Manage a Cash App Pool
Open Cash App, tap the Money tab, choose Pools, create a new Pool with a name and optional funding goal, then invite friends using their $Cashtag. The organizer can withdraw funds once collected.
Using Pool for Group Payments
Everyone contributes with just a few taps. When splitting expenses, understanding pro rata calculations helps ensure fair payments based on usage.
Note! Cash App Pools are intended for personal use only, such as group trips, shared family expenses, or club activities. If you’re tracking shared business costs, use tools like business reports and calculate your cash flow to track money movement.
Security and Safety
Cash App has built-in security tools but has faced serious criticism from regulators over fraud handling.
Cash App Security Features
Features include PIN or Face ID locks, one-time login codes, encrypted transactions, instant payment notifications, the ability to disable your Cash Card instantly, and fraud alerts.
In January 2025, the Consumer Financial Protection Bureau ordered Block to pay $175 million for fraud protection failures. Whistleblowers also told regulators that anti-money-laundering controls were too weak.
Protecting Your Account and PIN
To reduce risk:
- Never share your PIN or sign-in code
- Only send money to people you know
- Double-check $Cashtags before paying
- Turn on security locks and notifications
- Ignore strange payment requests
Pros and Cons of Using Cash App
| Pros | Cons |
| Fast, easy peer-to-peer payments | Customer support can be difficult to reach, and many users report unresolved issues |
| Free Cash Card with Boost discounts | Limited fraud protections compared to traditional banks (CFPB finding) |
| Simple investing tools for stocks and Bitcoin | Fees for instant transfers, ATM withdrawals, and credit-card-funded payments |
| Direct deposit options (including early paycheck availability) | History of regulatory action over fraud handling and customer service failures (CFPB $175M enforcement) |
| Easy Pool feature for group contributions | Higher risk of scams, especially when paying unfamiliar users |
Cash App Fees and Limits
When you first sign up, limits are lower. Typical unverified limits: send up to $250 per week, receive up to $1,000 per month. Verify your identity to increase limits significantly.
Fees for Sending, Receiving, and ATM Withdrawals
Usually free:
- Receiving money
- Sending from your balance
- Standard bank transfers
- Cash Card purchases
Common fees:
- Instant transfers: Around 1.5%
- Credit card payments: About 3%
- ATM withdrawals: $2.50 plus ATM operator fees
- Bitcoin transactions: Variable network fees
An ROI calculator can help determine if Cash App’s fees work for your business.
Advanced Features
Cash App Borrowing and Loans
What is Cash App Borrow?
Cash App Borrow is a short-term loan feature for eligible users. The amount you can borrow varies for each person and may reach a few hundred dollars, depending on things like your account activity, direct deposits, and repayment history.
Investing and Bitcoin on Cash App
Cash App offers stock investing from $1, Bitcoin buying and selling, automated purchases, and portfolio tracking. Tax documents are provided for investment gains. If building wealth through perpetuity income streams, use these alongside traditional planning.
Understanding assets and liabilities is key for business owners. Track these through a balance sheet and review with a profit and loss statement.
For freelancers choosing payment methods, check this guide to getting paid as a freelancer or contractor.
Cash App in a Nutshell
Cash App gives you a fast, simple, and flexible way to manage everyday money tasks. From sending payments to using a free debit card, investing in Bitcoin, or contributing to a group Pool, everything happens inside one app.
But like all financial tools, it’s important to use Cash App safely. Recent regulatory actions show the need to double-check $Cashtags, avoid strangers, and protect your PIN and sign-in codes.
When used wisely, Cash App can help you split bills, get paid quickly, invest small amounts, and manage daily spending. Pair it with strong financial habits—like tracking cash flow and using digital bookkeeping tools—to keep your money organized and secure.
Get Started with Invoice Fly’s Software
Invoice Fly is a smart, fast, and easy-to-use invoicing software designed for freelancers, contractors, and small business owners. Create and send invoices, track payments, and manage your business — all in one place.
FAQs about Cash App
The downside is that Cash App has faced regulatory penalties for weak fraud handling and slow customer support. Because of this, users need to be careful, double-check who they send money to, and use all available security features.
No. You can use Cash App without linking a bank account, but adding one lets you transfer money out, receive direct deposits, and increase your limits.
You need a phone number or email, your full name, date of birth, and a unique $Cashtag. To unlock higher limits, Cash App may ask for your full Social Security number.
Cash App uses your Cash App balance first, but it can also pull money from your linked debit card, bank account, or incoming direct deposits.
Cash App uses encryption, PIN or Face ID, and security alerts to protect your account. However, regulators found weaknesses in how it handled fraud claims, so users should stay cautious and only send money to trusted contacts.
Afterpay lets you split purchases into four interest-free payments—one upfront and three every two weeks—as long as you pay on time.
Direct debit allows companies to automatically withdraw money from your Cash App balance or linked bank account for subscriptions or recurring bills.
When using Plaid, Cash App may appear under Sutton Bank, Lincoln Savings Bank, or “Cash App.” Searching “Cash App” usually works best.