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Is Cash App a Reliable Payment Solution for Your Business?

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Maintained Since: October 24, 2013

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Square Cash
Rating
C
3.3/5
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Pros

Clear pricing structure
Simple setup
No monthly fees

Cons

Chargeback fees apply
Higher transaction fees
Limited customer support
Account stability issues
Limited international use

Overview

In this review of Cash App, we provide a clear overview of this widely used money transfer service from Square and Block, covering rates, fees, contract terms, and user experiences, including common complaints and industry ratings. We address security concerns such as the 2022 Cash App Data Breach, and explain how the platform works for both personal and business payment processing, as well as its features for stock trading and Bitcoin transactions. The review weighs the pros and cons of Cash App while also highlighting challenges like fund holds and customer service issues. In addition, we examine legal challenges, including lawsuits and fines, to give a complete picture of the company’s operations. This article aims to help readers determine whether Cash App is best suited for casual use or more serious business needs.

About Square Cash

Cash App (formerly known as Square Cash) is a cash transfer service launched by Square (and parent company Block) in October 2013. Like Venmo, Cash App allows individuals to send cash amounts or Bitcoin to each other using a dedicated mobile phone application or via email from a linked debit card. It also enables businesses to get paid through the app for Square’s usual price of 2.75% per transaction paid by the recipient of the transaction. In 2021, Square acquired buy-now-pay-later service Afterpay.

Screen Capture of Cash App Homepage
Cash App Homepage

Cash App Data Breach 2022

In April 2022 it was announced that Cash App had experienced a major data breach, allegedly exposing over 8 million users’ names and brokerage account numbers, in addition to other information. Breaches like this frequently lead to legal actions, but as of the writing of this review nothing has surfaced yet.

Is Cash App Holding Your Funds Right Now?

Thousands of users have had their payments frozen by Cash App. If you’re one of them, then you might find these resources helpful:

Cash App Products and Services

Cash App Payment Processing – Send Money to Your Friends

The process for making payments is simple: download the company’s Cash App from the iTunes or Android app store, create an account, enter the amount you want to send or request, select a recipient or payer, and hit send. Square will send a message to the recipient’s email address immediately, notifying them of the payment, and the transaction will process within two days. All personal transfers through Cash App are processed for free.

Related: Sick of Cash App? Use one of our Best Mobile Apps for Sending Money instead.

Cash App Payment Processing- Businesses Can Use It, Too

Square Cash’s solution for businesses requires merchants to set up a dedicated “cashtag,” which is a landing page where customers can enter their card details and pay the business directly. Cashtags are intended to be easily shared payment methods that would work best for the personal services industry, non-profits, and short-term fundraisers. Each payment accepted via a Square cashtag costs 2.75% of the payment amount to process, which is roughly on par with most mobile payment processing services. In 2022, it was announced that the IRS would require reporting of transfers of over $600 on Cash App and other peer-to-peer payment apps, which will heavily affect the taxes of those using the app for large transactions.

Cash app lets users buy stock and bitcoin
Cash App allows users to purchase stocks and Bitcoin through the app.

Customer Reviews & Sentiment

Overview of Cash App Customer Feedback

With nearly 400 negative Cash App reviews found in our comment section alone, concerns have been raised about unexpected fund-holds and the difficulty or delay in receiving customer support. These issues seem consistent across Square’s range of products, with Cash App being particularly affected due to its wide accessibility to the public. If you’ve encountered issues with Cash App, we encourage you to share your experience in the comments below.

Increasing Concerns Over Cash App Scams and Security

Reports from 2020 highlight a significant rise in scams and hacking incidents involving Cash App accounts. These fraudulent activities, originating outside Square or Cash App, exploit the nature of these accounts, raising serious security concerns. The company’s response to such incidents, particularly regarding fund recovery, has prompted scrutiny from the FTC. Cash App users are strongly advised to communicate with the company exclusively through its official website and app to avoid scams, especially those related to counterfeit customer support numbers.

Cash App Legal Actions and Complaints

A lawsuit alleging violations of the Electronic Funds Transfer Act (EFTA) was filed against Square in 2020, focusing on Cash App’s handling of scam and hacking incidents. Despite this and other lawsuits against Square, none directly target Cash App’s operational practices. Merchants and users affected by service issues or seeking dispute resolution are recommended to report their concerns to appropriate supervisory bodies for non-litigious action.

Customer Service and Support for Cash App Users

While Square attempts to safeguard transactions from potential fraud, its approach to freezing transactions suspected of being illegal has been met with frustration due to limited live support options. Currently, Square primarily offers email support to users with deactivated accounts, often resulting in slow response times. For those able to access a customer code, phone support may provide slightly better assistance, though its effectiveness is varied.

Security Considerations for Cash App Users

Cash App enjoys high ratings on both Google Play and the iTunes App Store, despite the presence of reviews detailing concerns over fund-holds and security vulnerabilities. The service poses a potential risk for unauthorized transactions if a user’s account is compromised. Users are advised to adjust account settings for added security, such as requiring the entry of a card’s CVV code for transactions.

Assessing Cash App for Merchant Use

With the introduction of Cash Pro, Square offers merchants the ability to receive payments through a dedicated Cash App profile. However, this service incurs a transaction fee of 2.75%, aligning with Square’s standard pricing. Merchants should weigh the convenience against the potential for account reclassification and associated fee increases when using the app for business transactions.

Challenges in Accessing Cash App Support

The lack of live customer support remains a significant concern for Cash App, making it difficult for users to promptly address fraudulent transactions. Given the sensitivity of the personal information collected by Cash App, the absence of direct support options raises additional security and privacy concerns among users.

This review aims to provide a comprehensive look at Cash App, incorporating key SEO terms such as “reviews,” “complaints,” and “customer service” to assist those researching the service. For detailed information and resources, users are encouraged to visit Cash App’s official channels.

Industry Scores & User Ratings

Online Ratings Summary
BBB Rating1.1
Trustpilot Rating1.2
Cash App4.6
Our Rating3.3
Average Rating2.55

BBB Rating Analysis for Cash App

Cash App is accredited by the BBB since 4/15/2021 and is headquartered in Oakland, CA. It has an “A+” rating and has been in business for 14 years. Cash App has an average customer review rating of 1.1/5 stars based on 1,349 customer reviews. There are 12,357 customer complaints closed in the last 3 years, with 4,781 complaints closed in the last 12 months. Common themes in the reviews and complaints include issues with customer service, problems with transactions, and difficulties in resolving disputes.

Negative Feedback

On Dec 1st **** am I transferred $675 from my bank to my cash app card. I noticed when checking my bank account yesterday that the $675 was taken out of my bank twice. Once immediately and then again around 10am. I did call my bank and file a dispute but they definitely stated cash app took the money twice and only credited my cash app once. The bank stated that this has happened with cash app several times that they are aware of. This close to Christmas and it’s all I had to get to my next check, now I had to return what I did have in there left $540 to cover the bills I paid that would not have been an issue. It went from well planned to a nightmare quickly. I tried to speak to the support bots and called to speak to a person who barely spoke English and kept putting me on hold. I am absolutely devastated about this. – Complaint from December 4, 2023

Cash app is great-if you can get it to work! I mean the features. I am Not allowed to add money from A retailer or merchant. Isn’t that one of the main reasons to have a cashapp? To add money to send money? When I asked them why they say I see you cannot add money at this time. And we cant tell you why or when or how you can fix this. Any other questions? Seriously??? – Review from December 10, 2023

Positive Feedback

There are no positive reviews published about Cash App on the BBB website.
Source: BBB

Trustpilot Rating Analysis for Cash App

Cash App has a low rating of 1.2 out of 5 stars on Trustpilot, based on 4,084 reviews. The majority of the reviews are negative, with only a small percentage of positive feedback. Common themes in the negative reviews include issues with customer service, problems with transactions, and difficulties in resolving disputes.

Negative Feedback

I know better than to keep my money with them or even receive money from anyone who uses them. That’s how terrible and unsecure their service is. Now I use a more reliable platform to help grow my money instead, “TreasureFunding”. They are super efficient with a very user-friendly interface. The returns are great and the support team are pretty proactive. Although recent, I have made several withdrawals already. – Review from December 12, 2023

Cash app has the absolute worst customer service I have ever experienced. They closed my account without warning and I had my child sponsored on my account so I could not send him money for food that day and when I tried to speak with someone it took weeks and I never got answers as to why my account was closed. Cash app operates unethically and is very unhelpful when trying to resolve issues. No one in customers service helps and they refuse to let you speak with managers. They do not care about their customers at all. – Review from October 26, 2023

Positive Feedback

I have heard of a lot of people having issues with Cash App, but as long as you aren’t using the app to do anything scandalous or trying to send money to people you don’t know, I don’t really see a problem with it. You should never give out your cash app information to someone you don’t know. I have heard of others getting hacked, but that’s not necessarily true for everyone. Setting up two-factor authentication and having all transactions sent to your phone and email are a good way to ensure you aren’t getting hacked. Bad people that choose to hack other people aren’t necessarily CashApp’s fault. That’s why I don’t give them a bad rating. I will say that their security measures need to be improved so that it’s harder for hackers to get access to your information. Other than that, I’ve had no issues with Cashapp from my personal experiences. – Review from November 30, 2023

Source: Trustpilot

Google Play Store Rating Analysis for Cash App

Cash App, available on the Google Play Store, has a high rating of 4.6 stars based on approximately 2.77 million reviews. The app is widely used for financial transactions, including sending and receiving money, and offers features like early paycheck deposits, savings, and investing in stocks and Bitcoin. While many users appreciate its convenience and ease of use, there are some concerns and complaints.

Negative Feedback

I used cash app for years. I’ve never had a negative experience up until recently. All of my transaction histories and people that I have done transactions with have disappeared from my account. My stock history has vanished. It shows I’ve made one transaction with the entire account and it saved one favorite. It’s an absolute mystery as to why it seems 99% of all my data with this app including the past stock trades have just up and vanished. It’s saddening and overall extremely disappointing.
– Review from November 28, 2023

WORST CUSTOMER SERVICE EVER! UNACCEPTABLE! I HOPE THEY GO BANKRUPT! App processes multiple transactions without warning! App sent 2 transactions, although I only set up 1. The app should be fixed, so it doesn’t use 1 confirmation for multiple transactions. The non-customer support through the app and email continually asked for more info for 7hrs. Then they claim they can’t help and never once tried to pick up the phone! POOR BUSINESS MODEL!
– Review from November 26, 2023

Positive Feedback

If I could rate 10 stars I would. I can’t say enough good things about Cash App! I use it for all my banking needs. I get paid 3 days early, I save money with roundups, my ATM fees are reimbursed and now I have $50 free overdraft protection! Love this app more than PayPal or Venmo. So easy to send and receive $. No waiting for verification or anything. And almost everyone is on cash app. Super easy to look people up whether or not they are on your contact list.
– Review from November 26, 2023

Source: Google Play Store

Processing Rates & Fees

Free and Easy for Personal Users

Cash App is incredibly easy to use and costs nothing for personal users. Anyone with an email address and debit card can sign up for it and begin sending money to friends quickly. The service advertises that it takes only seconds to make a deposit, but users should plan on a one to two-day deposit window just to be safe. Instant deposits are also available but have a fee of 1.00% to 1.50% attached to them. Any device that sends emails can use Cash App, making it widely accessible for all users. Square initially holds users to a processing limit of $250 per week, but users can increase this amount to $2,500 by providing additional personal information to Square and linking to a Facebook account. For personal users, Cash App’s pricing, setup, and payment delivery are very competitive when compared to other mobile apps for sending money. Still, we always encourage merchants to check out our list of the providers of the best merchant services.

Business Owners: Beware the Square

Business users can take advantage of Cash App’s convenience and simplicity, but the service’s 2.75% charge on debit card transactions far exceeds the typical interchange fees charged to process debit cards. As a result, Cash App for business is not competitive with a traditional merchant account in terms of pricing or scalability. In addition, a common Cash App complaint for personal users and business users is unexpected fund-holds and account freezes from Square, which is a direct result of the company’s unwillingness to properly vet users during the sign-up process. Most businesses should not consider Cash App a reliable or cheap option.

Cash App services
Cash App’s main use is for personal, smaller payments as opposed to those for businesses

Employee Reviews & Sales Practices

No Hidden Fees…

Cash App is a subsidiary service of Square and is marketed as a free service primarily for personal users. The product’s pricing model and sales approach make it unlikely that Square can mislead users about its costs, and there are no public Cash App complaints that allege deceptive sales practices from Square.

…But Watch Out For Holds

A large number of users’ funds have been unexpectedly held, but Square’s terms of use (visible on the company’s website here) clearly outline Square’s policies regarding fund-holds. It is therefore unlikely that the company is intentionally deceiving users in order to hold their funds. Fund-holds are a frustrating practice within the payment processing industry, but there are ways to avoid fund-holds with Square. While it is clear that Square could do a better job of explaining its fund-holding policies, the company does not appear to engage in intentional misrepresentation or nondisclosure. This compares favorably to our list ofbest credit card processors.

Square Cash Competitors

Compare Square Cash to competitors that earned top marks.

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Helcim logo
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Bottom Line

Cash App presents itself as a straightforward and free peer-to-peer money transfer service, positioning itself as a strong alternative to similar apps like Venmo. Its user-friendly interface underscores its appeal, making it an attractive choice for those looking for simplicity in digital transactions. However, this simplicity seems to be accompanied by a notable shortfall in customer support, which could be a significant downside for users who encounter issues or require assistance.

Both personal and business users are advised to carefully consider the pros and cons of using Cash App. While its convenience is undeniable, the lack of substantial customer service support poses potential risks that could outweigh the benefits for some users. As with any financial service, it is prudent for users to explore and evaluate all available options for sending and receiving money to ensure they choose the service that best meets their needs and expectations.

Read Actual User Reviews

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Contact Square Cash

Contact & Customer Support
Customer Service(800) 969-1940
Additional Support ChannelsIn App Contact Support Form
Websitecash.app