Cash App was previously known as Square Cash. It is a dedicated service provider for cash transfers that Square launched. The parent company, Block, was launched in October of 2013. Cash App or Square Cash enables individuals to send dedicated cash amounts or bitcoin to each other with the help of a feature-rich mobile-based smartphone application.
Cash App is also known to help individuals accept payments with the help of the mobile application. The recipient of the funds typically pays a fee of 2.75% of the total transaction amount. Additionally in recent news, in late 2021 Square acquired Afterpay, a famous buy-now-pay-later service.
Cash App Data Breach in 2022
In April 2022, there was an announcement that Cash App had experienced a significant data breach. Allegedly, the data breach ended up exposing account numbers and names of more than 8 million users. Breaches of these level usually lead to significant legal actions. However, until now, there have been no reports of any legal action taken against Cash App.
Can Cash Apps Hold Your Funds?
Multiple users have experienced freezing of payments through the Cash App. In this case, it is recommended to reach out for professional help from the company’s representatives.
Payment Processing Functionality
The overall process of making payment processing more straightforward is to download the Cash App from the Android or Apple App Store. Then, you can go ahead with creating an account and entering the amount that you wish to request or send. Select the payer or the recipient and press the button Send.
Cash App will send an email to the recipient of the payment instantly to notify them that the payment has been initiated. The transaction process will typically be completed instantly, or within 48 hours.
Payment Processing by Cash App for Businesses
The solutions offered by Cash App for businesses will require the respective merchants to launch a proper ‘cashtag.’ It is a dedicated landing page wherein customers are expected to enter their respective card details while paying the business directly from the page.
The primary purpose of cashtags by Cash App for businesses was to simplify the process of sending or transferring money through the app for business enterprises. These services function the best for the personal service industry, short-term fundraisers, and charity organizations.
Every payment accepted through the Cash App cashtag feature will be subject to a 2.75% fee of the total payment for processing costs.
Recently, in 2022, there was an announcement made that the IRS will now require reports of transfers valued at more than $600 through Cash App along with other peer-to-peer payment applications. This will leave a significant impact on those who tend to make use of the application for more significant transactions.
Customer Support Issues with Cash App
There are some negative reviews and complaints regarding Cash App. Some complaints accuse the company of being a rip-off or a scam. The complaints related to Cash App significantly fall under two broad categories -sudden or unexpected fund-holdings and non-existent or slow customer support.
Both the issues are benchmarks of the products of Square Cash. However, Cash App remains particularly vulnerable to these complaints because they are readily available to the general public.
Scams and Hacking Incidents of Cash App
In 2020, there were several complaints related to hacking and scam-specific issues with respect to Cash App accounts. While problems related to hacking and scamming are not the outcomes of Cash App or Square Cash themselves, the general nature of the subsequent accounts makes these companies highly vulnerable to these practices. Merchant account providers should keep a note of this issue.
Moreover, it is also observed that most individuals realize that Square Cash and Cash App are slightly less responsive to the inquiries related to such complaints -along with recovering funds. It occurred to such an extent that the FTC had to look into the matter. Most of the issues are the outcomes of fake listings of customer support numbers online. Therefore, it is strongly recommended that Cash App users should contact the company only through the app or the official website.
Fines & lawsuits against Cash App
A lawsuit was filed against Square Cash in October 2020. The lawsuit alleged that there was a violation of the EFTA or federal-based Electronic Funds Transfer Act by the company. The allegation specifically called into question the Cash App section of the main company. The lawsuit remains connected to other scams claiming that Square Cash and Cash App had intentionally made it difficult to recover funds that have been lost due to hacking or scams.
There are additional lawsuits that have been put forth against the company Square. Most of the accusations deal with the problem of holding funds by the company. Another lawsuit deals with the company allegedly mis-transferring funds. Merchants who are dissatisfied and wish to pursue a non-litigious course of action against the organization can think of reporting the issue to one of the major supervisory organizations.
The data breach by Cash App that took place in 2022 might have to face some legal action.
Customer Service Complaints
Complainants of Cash App state that Square goes ahead with freezing the transactions without any warning if the organization suspects that the payment might be fraudulent or illegal. The issue gets multiplied by the fact that the parent company exclusively offers access to email support to its deactivated users. In turn, this offers a slow response time and no or little assistance.
Some of the users who are still able to get access to a dedicated customer code will receive help from a representative on the phone. However, individuals still complain that the existing method might only be partially helpful.
Security Offered by Cash App
Currently, Square Cash has a rating of 4.6 out of 5 stars. Most of the complaints regarding the company are related to specific malfunctions and withholdings of the funds. However, one of the major concerns regarding Cash App that is gaining a huge impetus is the rising potential security threat that is imposed by its range of services.
An individual who would like to access the linked account of Square Cash can easily transfer money. However, the amount is limited to either $250 or $2,500. The existing risk can be mitigated by users who wish to change the respective account settings to ensure entry of the CVV code of the card.
Pricing of Cash App
Cash App is available as an extremely simple to use and cost-effective payment processing platform. Anyone having access to a debit card and email can sign up for the account while sending money to others on the go. The service says that it takes only some seconds to ensure a deposit. However, users can plan out a 1 or 2-day deposit window to be safe throughout. There is also the option of instant deposits. However, there is a fee of 1 percent to 1.50 percent linked to such deposits.
Initially, Square goes ahead with creating a processing limit of around $250 every week out of the users. However, users can increase the limit to $2500 by offering extra personal information to the platform and linking their Facebook accounts.
For personal users, the pricing setup of Cash App and its payment delivery options are quite competitive -especially when compared with other leading payment processing providers. It is still recommended for merchants to check out the list of reliable providers of the best merchant services available out there.