Cash App Tracing and Privacy Concerns (2023)

Written By Branson Knowles

Cash App has recently undergone some changes as to what they track and what they have to report to the IRS. It wasn’t them that made the changes, rather a larger sweeping change that affects nearly all fintech platforms like Cash App. The new change has many users asking: can Cash App be traced?

Cash App can be traced by Cash App themselves and the government, but not to private citizens. If you’re worried your friends will see where you send your money, don’t be. The only groups that can see your Cash App info are the company themselves and the groups they’re required to share your info with.

The American Rescue Plan Act of 2021 was implemented with the primary intention being COVID relief. In that act, as with most American acts and bills, there were a plethora of secondary legislation, including the reduction of some important reporting amounts.

In short, the IRS didn’t really care about what Americans were doing on fintech apps like Cash App and Venmo, letting the average citizen conduct their transactions without having to report them.

The IRS only wanted people to report if they had over 200 transactions on the apps, with transfers exceeding $20,000! A fair amount for most Americans, as many of us would never hit $20,000 in sending and receiving on mobile finance apps in one year.

As of the “American Rescue Plan”, however, this amount was lowered to an astounding $600! They don’t care how many transfers you conduct either, if you have sent and received a total of $600, you’ll have to report it on IRS form 1099-K.

Luckily due to the confusion of the implementation of this act, this law won’t go into effect until 2024.

I mention this because Cash App is more diligent than ever when looking through your transactions, calculating the total amount and checking if you’re using a personal account like a business account.

If you’re looking for what Cash App traces, and who else can see what you do on the app, let me break it down for you. 

Can Other People See Your Cash App Transactions?

Even though the IRS changed their reporting laws, Cash App still won’t let just anyone see your transactions. They’re compelled by the government to relay any necessary information, but other Cash App users don’t have anything to do with that.

If you’re wondering if your friends, family, or other Cash App users can see your transactions, they can’t. The only time you can see another Cash App user’s transactions is when they conduct those transactions with you.

You can search for other Cash App users and click their profile. When you bring it up you’ll be able to see their profile picture and bio (if they have one), their unique $cashtag, their display name, and any and all transactions you’ve conducted with each other. 

That’s all. You can’t see if their mom is sending them money every month unless you are their mom! 

I’m a big fan of privacy when it comes to finances. I think sharing a little isn’t the end of the world, but I can’t see any benefit to my friends and family knowing how much I spend or don’t spend on certain things.

Could you imagine how hectic your life would be if everyone knew how much you gave someone for their birthday? Everyone would expect something from you!

Luckily, Cash App users don’t have to worry about this. Cash App won’t let anyone who isn’t you see what you’ve spent your money on.

If you’re still worried about who can see you and your information, you can change it. Cash App lets their customers change their “full name”, better known as a display name, so you can control what people see when they see your profile.

cash app full name

You can also preview your profile so you have an idea of what others see when they look at your account. 

cash app preview profile

What Information Does Cash App Collect?

Just because Cash App isn’t sharing your info with other users doesn’t mean they’re not collecting it. Information is a hot commodity these days. Most companies that collect your information, basic stuff like your name, birthday and email, sell it to others. 

Cash App, however, doesn’t. They collect and store your personal information but claim that they will never sell it. I’m a big fan of that, they have the opportunity to sell their customer’s information to make more money but don’t. Thanks, Cash App!

If you’re wondering why they collect your information, it’s not entirely for them. Ever since the events of 9/11 and the implementation of the Patriot Act, the government wants to know who’s moving money where. 

Cash App works hard to collect your financial, transactional, and basic information to comply with the strict regulations placed upon them by the US government. 

Working at Chase Bank was the exact same, we had to ask an extensive list of questions to all of our potential customers before we could open their accounts. 

Cash App collects your financial information by watching your spending habits, seeing where you get your money from and where you deposit it. Nothing malicious, just basic tracking.

They collect your transactional history largely the same way, watching where you spend your money and how much you spend. While Cash App doesn’t sell your information, they do give it to their advertising partners in order to tailor ads to you. 

You can opt out of this if you’d like. Cash App also shares your information with their partner companies, service providers, and affiliates. But thank goodness they don’t sell it, right?

Lastly, Cash App collects your basic information for a variety of reasons. One reason is to give your basic information away to the other companies they work with, listed above. 

cash app account information

Another is to use it to see if you’ve been a bad customer elsewhere. Each bank, credit union, or other financial institution has access to a record of all customers, even customers who never have had business with the finance company in question.

They use this list to see if you’re a customer who will incur debts, and if you do, whether or not you’ll pay them off.

cash app information 2

Will Cash App Report You to the IRS?

Yes, Cash App is legally required to report their customers to the IRS. With the upcoming change to form 1099-K, you should think about how you conduct business on the app.

The change isn’t coming until 2024, so you have time to make your decision. Again, Cash App had to report their customers whenever they exceeded $20,000 in transfers, that’s a combination of money sent and received, and 200 transfers.

As of 2024, that dollar amount is going to be lowered to $600 with no regard for the amount of transfers conducted. Once that change happens, Cash App will report all of their customers who exceed that dollar amount to the IRS.

This is a huge change for business owners as well, as Cash App will have to report anyone exceeding $600 in payments accepted through a card reader. 

If you’re unsure of your states reporting requirements, Cash App has a handy web page where they go over each of the differences. 

Can Cash App Trace Your IP Address?

Yes, Cash App can track and trace your IP address. When you use the app, you give Cash App permission to your IP information, including any and all information related to the device you’re using.

Cash App can also access your geolocation, if you give them permission. The same goes for the contacts list in your phone, Cash App can only access them with your go ahead. 

Does Cash App Keep Your Information Private?

Cash App may ask for a lot of your information, but to their credit they keep it safe. The company uses top of the line encryption services and anti-fraud software to be on a constant lookout for wrongdoers. 

The company also maintains that any information you send to them is encrypted before it reaches their servers, giving you another layer of security. 

More Useful Articles About Banking With Cash App

About the Author

Lead Researcher, Digital Banking in the U.S. at TopMobileBanks

Branson Knowles is a former banker and current writer at TopMobileBanks.com.

During his years banking, he helped his clients discover their financial freedom through smart savings and spending goals. He started as a teller before becoming a banker and obtaining his federal licenses, furthering his clients' on their financial journeys.

After becoming one of the top producing bankers in the state, Branson decided it was time to pursue his own financial freedom. He started writing freelance finance articles before joining TopMobileBanks.com, breaking down banking like only an ex-banker could.

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