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Square’s Mobile App for Money Transfers
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.
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:
- How to Contact Square
- Watch Out For These Square Cash App Customer Support Scams
- How to Make Your Payment Processor Release Your Money
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.
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.
Square Cash Review Table of Contents
- Costs & Contract: Cash App is free for personal users and charges 2.75% per transaction for business users.
- Complaints & Service: Cash App complaints number nearly 400 on public complaints forums.
- BBB Rating: Cash App has a “B” rating with the Better Business Bureau and has received 6,660 complaints and 503 reviews in the past 3 years.
- Sales & Marketing: Cash App does not hire independent sales agents and clearly discloses its pricing and terms.
Should You Trust Square Cash?
Lawsuits, Reviews & Complaints
Here's Who We Trust.
Total Online Complaints
Live Customer Support
Active Users Only
Most Common Complaint
Major Customer Support Issues
We have located nearly 400 negative Cash App complaints in the comment section of this review alone, some of which accuse the company of being a scam. The Cash App complaints overwhelmingly fall into two categories: sudden, unexpected fund-holds and slow or nonexistent customer support. Both issues are hallmarks of all of Square’s products, but Cash App is especially vulnerable to such complaints due to the fact that it is available to the general public. If you have a Cash App complaint, please let us know in the comments below.
Cash App Scams and Hacking on the Rise
It has been widely reported as of 2020 that scams and hacking related to Cash App accounts are on the rise. While the scamming and hacking do not come from Square or Cash App themselves, the nature of the accounts makes them highly susceptible to such practices, which should be noted by potential merchants. Additionally, it appears that many people find Cash App and Square to be less than responsive to inquiries about fixing such issues and recovering funds, so much so that the FTC has had to look into the company. Many of these such issues arise from fake customer support numbers listed online, so it is highly advised that users of Cash App only contact the company through their official website and app.
Cash App Lawsuits and Fines
A lawsuit was filed against Square in October 2020, alleging a violation of the federal Electronic Funds Transfer Act (EFTA) by Square, particularly calling into question the Cash App part of the company. This lawsuit is connected with the above-mentioned scams, claiming that Cash App and Square purposefully make it difficult to impossible to recover funds lost in scams and hacking. Additional lawsuits have been brought against parent company Square, most of which deal with its holding of funds. Another here deals with allegedly mistransferred funds. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
The aforementioned 2022 Cash App data breach will possibly lead to legal action.
Cash App Customer Service Options
Complainants state that Square freezes transactions without warning if the company suspects that a payment may be illegal or fraudulent. This issue is compounded by the fact that Square almost exclusively provides e-mail support to deactivated users, which offers a slow response time and minimal assistance. Some users who can still obtain a customer code can get a representative on the phone, but many people report that this method is only marginally more helpful.
It’s Only As Secure As You Are
Square Cash currently has an overall rating of 4.6 out of 5 stars in the Google Play Store and a 4.7 star rating in the iTunes App Store. Most of the negative reviews on these forums describe fund-holds and malfunctions, but another major concern throughout most Square Cash reviews is the potential security hazard posed by the service. Someone who obtains access to a user’s Square Cash-linked account can easily send themselves money, although this amount will be limited to either $250 or $2,500. This risk can be mitigated by users who change their account settings to require entry of the card’s CVV code.
A Confusing and Potentially Risky Approach to Fraud
Considering the company’s quickness to freeze charges it thinks are fraudulent but its alleged unwillingness to recover funds from actual instances of fraud, we recommend that merchants consider carefully whether they are willing to risk their funds with Cash App. It is reasonable to assume that Square’s liability is likely limited when it comes to fraudulent transactions, and a savvy hacker would probably be able to reroute funds before Square could reverse them.
No Savings Over Normal Square Processing
In 2015, Square launched a feature called Cash Pro for business owners who wish to collect payments through Square Cash (now Cash App). Cash Pro enables merchants to send customers to a payment page using a “cashtag,” which is linked to the merchant’s dedicated Square Cash profile. Customers can pay at this page using a debit card regardless of whether they have a Square Cash account. Cash Pro costs 2.75% per transaction, which is identical to Square’s standard pricing and comparable to most mobile payment options.
Some personal users who process large payments regularly through Square Cash have reported that Square will sometimes attempt to reclassify their accounts as “Cash Pro” accounts if the company believes that users are conducting business transactions through the app. This increase in cost seems to put both parties in a difficult position. Users insist that they should be entitled to the free service, while Square unilaterally imposes a 2.75% fee on transactions that were previously free.
Hard To Reach Anyone
The primary concern with the service, however, is the fact that Square provides virtually no live customer support. In the event of a fraudulent payment, it is unlikely that a Cash App user will be able to reach an account representative in time to reverse the payment (see How to Contact Square). Since Cash App collects sensitive personal information, including a user’s debit card number and bank information, users may be wary to hand this information over to an entity without live support. In fact, nearly all negative reviews of the service cite concerns over security or privacy.
Is the BBB Rating for Square Cash Accurate?
Better Business Bureau Profile
See Which Processors Offer No Monthly Fees And No Contracts.
Product & Service Complaints
Billing & Collection Complaints
Advertising & Sales Complaints
Guarantee & Warranty Complaints
Note: We have adjusted this company’s BBB rating according to our own standards. To better understand why we adjust BBB ratings, please see our Rating Criteria.
Over 6,600 Complaints
As of this update, the Better Business Bureau is reporting a “B” rating for Cash App despite 6,660 complaints filed in the last 36 months. This is a rise of more than 1000 complaints from the total at the time of our last review, which itself is more than 1,000 more than the review before that. This massive uptick seems to be attributable to the rise in scams and hacking mentioned earlier in this review and to the huge use of the app in the COVID-19 crisis. 5,260 of these complaints were due to a problem with a product or service, 991 were billing or collections issues, 268 were due to advertising or sales problems, 99 were issues with delivery, and 42 concerned a guarantee or warranty. The BBB has also added a note stating that it has reached out to Square regarding Cash App and unemployment benefits, regarding scammers fraudulently obtaining unemployment benefits and transferring those funds into Cash App accounts. The company responded that Cash App experienced multiple technical issues that disrupted services, including funds availability. Cash App maintains a status page at status.cash.app, which the company updates when a widespread issue is identified and where customers can view updates on ongoing or recent disruptions to service.
The BBB reports that Square has resolved 3,536. However, closer inspection reveals that many of these “resolved” complaints have simply received a copy-and-pasted standard response from the company claiming that the customer was contacted by Square already. Many users have submitted replies to these “resolutions” saying that they are still having the same issue.
What Merchants Say
Cash App has also received 503 informal reviews on its BBB profile, all but 7 of which are negative in tone. Unsurprisingly, considering what we have discovered about the company’s fraud policies, a huge number of these reviews concern scams and fraudulent charges. The most recent review cites poor customer support:
Was selling something online and buyer wanted to pay with cash app.I have used in the past so had no issues.They took $300 of my money then wanted me to send $700 more to upgrade to a business account even though I had no restrictions on my account.Still getting bot e-mails asking for $700.Don’t use I stopped for sure.
Merchants and users will be better off with top merchant service providers with great customer service to avoid poor customer support in an emergency.
An Adjusted Rating
Given the company’s complaint total, resolution ratio, and BBB notice, we have adjusted the BBB’s rating to a “C.”
How Expensive is Square Cash Service?
Rates, Fees, and Contract Terms
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Instant Cash Out Fee
1.00% - 1.50%
Early Termination Fee
PCI Compliance Fee
Equipment Lease Terms
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.
Does Square Cash Use Deceptive Marketing?
Advertising & Sales Strategy
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Employs Independent Resellers
Advertises Deceptive Rates
Discloses All Important Terms
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