We have seen a lot of innovations in great financial apps that have been developed. This development, however, has led to many new concerns.
A lot of these concerns deal with safety. You want to know if your money will be safe with these apps.
Cash App uses encryption and other methods to safely protect your bank account information after your account is linked. However, Cash App users can increase its safety by enabling a security lock, turning on notifications, keeping the phone secure, and being aware of scams.
In this post, we will take a more in-depth look at just how safe it is to link your bank account to the Cash App.
Is the Cash App Safe to Link Bank Accounts?
Cash App uses some of the industry’s best technology and fraud protection to keep your account safe and secure. When you link your bank account, all your information is sent to their servers, which are encrypted. Whether you’re using public wifi at your local library, or your cellular plan, this information will be secured on their servers.
They also have a team and algorithm dedicated to fraud prevention. This means they can prevent unauthorized access to your account to prevent a data breach. They also monitor millions of transactions per day to keep your account and information secure.
How to Keep Your Cash App and Bank Account Safe
While Cash App has a great algorithm and an expert team there to keep your account safe at all times, it is also up to you to take measures to ensure your account isn’t hacked or breached by scammers. There are many steps you can take to ensure the safety of your account, and they are listed below.
1. Enable Security Lock
Security Lock requires users to use a pin, passcode, or Touch ID before every purchase. This feature protects you from fraudulent payments because you will be the only person authorized to send payments. It’s best not to share your pin or passcode with anyone to properly protect your account.
To enable this feature, tap the profile icon, choose security and privacy, turn the security lock on, then enter your passcode. It is such a great feature offered by Cash App and it’s very easy to use.
2. Turn on Notifications
Enabling notifications allows Cash App to send you a notification every time money is sent from your account or received. This is great because if someone were to access your account, you could immediately report the transaction as fraud. It is also great to keep track of all your payments in the app.
Notification settings can be found in the profile view within the app. It provides you with options such as where you want notifications sent and what transactions you want to be notified about. Using this feature won’t entirely prevent fraud, but it will surely keep your account safer.
3. Secure Your Phone
While this isn’t a feature within the Cash App, it’s still vital for the security of your account. Most modern smartphones come equipped with FaceID, Touch ID, or a passcode option. You should enable one of these to keep your phone secure and prevent thieves or keeping unwanted guests away from your phone.
If you lost your phone or it was stolen, someone could easily break into your phone and send money to themselves. Using a passcode prevents this from happening and helps keep your bank account information more secure.
4. Beware of Scams
Cash App will never ask you to send them personal information such as your pin or personal details. You should also watch out for emails sent from people pretending to be Cash App support. Also, if someone asks for your login with the promise of giving you “free money”, it is most likely a scam.
It is important to know whether or not someone is trying to scam you because they could retrieve your personal information such as your bank account details.
Which Bank Accounts Can Link to Cash App
This may be surprising, but Cash App currently accepts all major U.S bank accounts. As long as you have your routing number and account number, you can link your bank account to a Cash App. It is free to send and receive money through your bank account, though it will take up to 3 days to deposit money into your account.
Cash App also accepts cards from MasterCard, Visa, Discover, and American Express. These are the four major card issuers in the United States, so you won’t have a problem adding most cards. They also accept prepaid cards, but you’re unable to deposit money to them.
How to Link Your Bank Account to the Cash App
Linking your bank account to a Cash App is fairly easy. To link a bank account, click the profile icon, choose linked banks, tap link banks, then enter your bank account information. You can also modify your bank account information by repeating the process, and entering the new information.
Using your bank account to send and receive money is not only easy to do, but it’s also free. Unlike using your debit or credit card, Cash App charges no fees when using your bank account. You can also add cash to your Cash App balance using your bank account.
Is It Safe To Bank With The Cash App?
The Cash App offers great protection for your personal information and bank/card details. However, they are not backed by the FDIC (Federal Deposit Insurance Corp). The FDIC insures up to $250,000 for banks they back. This means if Cash App were to somehow lose your money, or go out of business, you would lose all your money.
It is safe to use the Cash App as a means to send and receive money, it may not be in your best interest to store a large sum of money or all your money in a cash app account. It is recommended to keep an FDIC-backed bank account for your protection.
Direct Deposit with Cash App
Direct deposit is the most popular method for employers. It is simple to do and allows quick and easy access to your money. Cash App not only supports direct deposits but also allows you to receive your money up to two days earlier.
They currently accept direct deposit paychecks, your tax returns, and so much more. This is deposited directly into your cash balance for use immediately. There is a $25,000 limit per deposit and $50,000 within 24 hours.
Cash App fees
Just like most companies out there, Cash App does in fact charge fees. They do this so they can remain profitable and continue to provide great service to consumers. We’re going to cover some of the fees associated with using the Cash App.
The cash card is a physical card provided by Cash App that links directly to your account. You use the money in your balance, and you can use it just like a normal card.
This card has a $2 fee for ATM withdrawals, and this is on top of the ATM’s fee. As for fees for the cash card, that is the only one associated with it.
Instant Transaction fees
Cash App currently has two ways to withdraw money. You can have it deposited into your bank account which can take 1-3 business days, or the faster method, having it instantly deposited to your debit card.
The instant transfer seems to be a no-brainer for most users. They charge a 1.5% fee or $0.25 minimum for all instant transfers to your debit card. If you consider the millions of transactions that happen per day, this is a great way for them to make a lot of money.
Linking Bank Accounts to Cash App: The Bottom Line
Cash App is a great tool to send and receive money with friends and family safely and securely. They take away all of the guesswork by ensuring every deposit and transaction is encrypted.
By using all the preventative measures provided by Cash App, you don’t have to worry about your account being breached, or your information being stolen.
The only drawback is that they aren’t currently FDIC insured which means there is always a chance you could lose all your money if something bad were to happen to the company. The likelihood of this happening is very slim, but it’s still something to look out for.
Not only do they offer secure transactions, but they also offer many great features that make your experience that much better. The app is intuitive and easy to navigate and they also offer customer support.
Tommy Gallagher is an ex-investment banker and founder of TopMobileBanks.
He is an early participant in banking digital transformation and fintech development. His consulting clients include prominent startups in the US and Europe.
Here on topmobilebanks.com, he is covering macro trends in the digital banking industry.