Do Prepaid Cards Work on Cash App?

Do Prepaid Cards Work on Cash App?

October 21, 2020         Written By Heaven Speirs

Cash App is a peer-to-peer payment platform that gained a massive following because of its simplicity, versatility, and user-friendly interface. Developed by Square Inc., this P2P app makes it easy to send money to friends and family for free using their phone number, email address or $Cashtag.

Most bank accounts, debit cards and credit cards work on the app, but what about other options? Do prepaid cards work on Cash App? If not, what are the alternatives? Let’s explore Cash App’s payment policy to review your options.

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Prepaid Cards Do Work on Cash App…Sort of

According to the list of supported cards for Cash App, most government-enabled prepaid cards are accepted, but not for deposits, as well as all debit and credit cards from Visa, MasterCard, American Express, and Discover.  You can send money to someone using a government-enabled prepaid card, but you cannot send money from Cash App to your card. This specific type of prepaid card is used for unemployment benefits, economic relief payments, and other government-issued payments.

What Cards Are Accepted on Cash App?

Cash App accepts credit cards and debit cards from Visa, Mastercard, Discover and American Express. However, the app does not currently accept business debit cards, ATM cards, or PayPal cards. Users can add a bank account to Cash App or direct deposit paychecks into their Cash App account.

Note that payments made with a credit card require a 3% fee, which is in line with Venmo and other P2P apps.

How Does Cash App Work?

If you’ve ever used PayPal or Venmo, you’ll already be familiar with the functions of Cash App. Link a payment account, send/receive money virtually, and transfer funds to your bank account as needed. Here’s a quick guide of Cash App basics.

How to Create a Cash App Account

Start by downloading Cash App on your Apple or Android device. After creating an account, you can also sign in online to access your account on your computer.

Follow the prompts to create your Cash App account. You’ll need to link at least one bank account to the app to start. You can add debit and credit cards to the account later on, but you need a bank account for the initial setup. One of the prompts will ask you to create your $Cashtag, which is a unique username that other people can use to send you money.

After you’ve followed all the necessary steps, you’ll have a Restricted Account. You can use this to send money from your bank account or deposit money you’ve received into your bank account, but you cannot send money from your Cash App Balance to another user. If Sharon sent $50 to your Restricted Account, you couldn’t send $20 of that to Bill. You’d have to send Bill money from your bank account, or deposit Sharon’s money and then send it to Bill.

To upgrade to an Unrestricted Account, you will need to verify your identity, including your name, date of birth, mailing address, and last four digits of your Social Security number. This process may take a few days to complete, but then you will have a fully-functional account.

Does Cash App Charge Fees?

There are no fees for most Cash App services. However, if you send money with a credit card, you will be charged a 3% transaction fee. You an avoid this by sending money from a debit card or bank account instead.

The only other fee you may be charged is an Instant Transfer fee, which ranges from 1% to 1.5%. This happens when you request a real-time money transfer to your debit card. If you transfer money to your bank account, there is no fee. You just have to wait 1-3 business days for the funds to post.

Featured Prepaid Card

Top Features:

No late fees or interest charges because this is not a credit card it is a prepaid card.

How to Send Money with Cash App

To send funds to another Cash App user, follow these steps:

  1. Open Cash App on your phone.
  2. Enter the amount of money you’d like to send, and hit the Pay button.
  3. Enter the phone number, email address, or $Cashtag (username) for the person you’d like to send money to.
  4. Add a description for the transaction, and then hit Pay again. Then the funds will be on their way!

You can send funds from your bank account, credit card, debit card, or Cash App Balance.

How to Receive Money on Cash App

There are two ways to receive money on Cash App. Someone can sand you money using the instructions above, or you can request money from one or more people on the app. Here are the steps to request money on Cash App:

  1. Open Cash App on your phone.
  2. Enter an amount of money and hit Request (the bottom left button).
  3. Choose people from the list provided, or manually enter the person’s $Cashtag.
  4. Add a note for the transaction, and then hit Request.
  5. If the recipient approves the request, they will be prompted to complete steps for payment.

Transfer Limits on Cash App

With a Restricted Cash App Account, you can send up to $250 in a 7-day period and receive $1,000 in a 30-day period. If you verify your mailing address, birthday, and last four digits of your SSN, you can increase Cash App limits. Verified accountholders can send to up to $7,500 per week and receive an unlimited amount of funds.

How Does the Cash Card Work?

The Cash Card is a free debit card connected to your Cash App account. This allows you to use funds in your Cash App Balance just like you would with a debit card tied to your bank account. Swipe the Cash Card anywhere Visa cards are accepted, and the funds will be pulled from your account balance. It’s that easy.

How to Order a Cash Card

To order a Cash Card, you must by 18 years of age or older. Select the Cash Card tab on the app’s home screen, and press “Get Cash Card.” The app will ask a few questions to verify your identity and find out where you’d like to receive your card. It takes up to 10 business days to receive the card in the mail, but that timeframe may be delayed based on your identity verification steps.

Cash Boosts on Cash Card (Discounts for Select Purchases)

The Cash Card offers “Cash Boosts,” which are special savings you can activate for select merchants. For instance, you can save 10% on DoorDash transactions when paying with a Cash Card. You can only activate one Cash Boost at a time, but you can switch between Boosts as much as you want. Make sure you activate the new Boost before swiping your card, and you should receive the corresponding discount.

To activate a Cash Boost, follow these steps:

  1. Open the Cash Card tab on the app’s home screen.
  2. Select Save with Boost.
  3. Browse through available Boosts and select one that you’d like to use. Then press Activate Boost.
  4. Use your Cash Card with the corresponding merchant.

Some Cash Boosts have minimum purchase limits in order to receive the discount. You can only use a Boost once per hour, and you cannot apply a Boost to a cash back transaction.

Cash Card ATM Withdrawal Limits

The Cash Card does support ATM cash withdrawals, but there are transaction limits to keep in mind. The ATM you use may also have a withdrawal limit, separate from Cash App’s settings. Here are the ATM limits for Cash Card:

  • Up to $310 per transaction
  • Up to $1,000 in any 24-hour period
  • Up to $1,000 in any 7-day period

Let’s break that down a bit. You can withdraw $1,000 on Monday, but then you have to wait until the following Monday to withdraw more money. If you withdraw $600 Monday and $400 Tuesday, you’ll be able to withdraw another $600 the following Monday. If you get cash back at a register, that will count toward your withdrawal limit.

Note: If you check your account balance using an ATM, it will display as $0, regardless of how much money is in there. Use the app on your phone for an accurate reflection of your Cash App balance.

Featured Prepaid Card

Top Features:

No late fees or interest charges because this is not a credit card it is a prepaid card.

Are There Fees on the Cash Card?

There are no monthly fees or transaction fees on the Cash Card. Cash App does charge a $2 ATM fee per withdrawal, in addition to the fee the ATM provider charges. If you receive a direct deposit of $300 or more into your Cash App account each month, you can have those fees waived.

Is Cash App a Bank?

Cash App offers many bank-like services, but it is not a bank. Even though the Cash Card is issued by Sutton Bank, the bank never actually holds the funds. Thus the funds in your Cash App Balance are not FDIC-insured like they would be in a traditional bank. You can use your Cash App and Cash Card much like you would a checking account and debit card, but at the end of the day, you’re using an app, not a bank.

The information contained within this article was accurate as of October 21, 2020. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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heaven

About Heaven Speirs

Heaven Speirs is a contributing writer for LowCards.com. She remains up-to-date with the latest developments in the credit card industry and the financial sector as a whole. Heaven has over 10 years of experience in online journalism, the bulk of which has been focused on personal finance. Heaven attended Oklahoma State University, where she discovered her talent for research and content creation. In her spare time, Heaven enjoys painting, playing poker, and spending time with her husband and three dogs.