Cash App (Square Cash) Review: Fees, Comparisons, Complaints & Lawsuits

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.

Related: Users Think Venmo Is Better Than Square Cash. Here’s The Comparison.

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.