Cash App is a peer-to-peer mobile payment service developed by Block, Inc. (formerly Square). It allows users to easily send, receive, and invest money, making it incredibly popular for splitting bills or tipping service providers.
Funding Cash App with a Credit Card
While funding Cash App from a linked bank account or debit card is free, using a credit card incurs a standard 3% fee.
Is it worth the 3% fee? Generally, paying a 3% fee negates the value of most credit card rewards, which typically average 1.5% to 2% cash back. However, using a credit card on Cash App might make sense if:
- You need to hit a high minimum spend requirement for a lucrative welcome bonus.
- You are earning significantly higher category bonuses that offset the fee.
Cash Advance Warning
[!CAUTION] Be aware that some credit card issuers may code peer-to-peer transfers via Cash App as a cash advance. Cash advances begin accruing high interest immediately and do not earn rewards. Always verify how your specific issuer treats Cash App transactions before making a large transfer.
Cash App Pay
Cash App has also introduced “Cash App Pay,” allowing users to check out at participating online and in-store merchants using their Cash App balance or linked cards. When using Cash App Pay for retail purchases, the transaction typically codes based on the underlying merchant, meaning you can still earn category bonuses without incurring peer-to-peer transfer fees.