What are the Disadvantages of Cash App?
Cash App is a mobile payment service developed by Square, Inc. It allows users to transfer money to one another using a mobile phone app. Cash App is a convenient way to send and receive money, but it does come with some drawbacks. In this article, we will discuss the disadvantages of Cash App and how to address them.
Low Early Limit for the First 30 Days
One of the biggest disadvantages of Cash App is that you are limited to sending and receiving up to $1,000 during the first 30 days on the app. This can be a problem if you need to send or receive more money than that. Fortunately, you can increase your limit by verifying your identity. To do this, you will need to provide a valid government-issued ID and a selfie. Once your identity is verified, your limit will be increased to $2,500 per week.
Does Not Come with Federal Deposit Insurance Company (FDIC) Coverage
Another disadvantage of Cash App is that it does not come with FDIC coverage. This means that if something happens to your account, you may not be able to get your money back. To protect yourself from this, you should only use Cash App for small transactions and keep your money in a bank account that is FDIC insured.
Cannot be Used Internationally
Cash App can only be used in the United States. This means that if you want to send money to someone in another country, you will need to use a different service. Fortunately, there are many other services that you can use to send money internationally.
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Security Concerns
Cash App is generally secure, but there have been reports of fraudulent activity on the app. To protect yourself, you should always be aware of any suspicious activity on your account and report it to Cash App immediately. You should also make sure that you are using a secure Wi-Fi connection when using the app.
Fees
Cash App charges a fee for some transactions, such as sending money to someone who does not have a Cash App account. The fee is usually a percentage of the amount you are sending, so it can add up if you are sending a large amount of money. To avoid fees, you should use a different service if you need to send money to someone who does not have a Cash App account.
Lack of Customer Support
Cash App does not have a customer service line, so if you have any issues with the app, you will need to contact them through their website or social media accounts. This can be inconvenient if you need help quickly.
Conclusion
Cash App is a convenient way to send and receive money, but it does come with some drawbacks. The biggest disadvantage is the low early limit for the first 30 days, which can be a problem if you need to send or receive more money than that. Additionally, Cash App does not come with FDIC coverage and cannot be used internationally. It also has security concerns, fees, and a lack of customer support. To address these issues, you should verify your identity to increase your limit, keep your money in an FDIC insured bank account, use a different service for international transactions, and be aware of any suspicious activity on your account.
Overall, Cash App is a useful service, but it is important to be aware of its drawbacks and take the necessary steps to protect yourself.
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