Physical cash has fallen out of favor in recent years as we start shifting towards becoming a cashless society. It started when paying for services using cards became a thing. Even the cards themselves are starting to go obsolete now that payment services via apps are becoming more common. With the recent pandemic keeping us at home, cash as we know it might come to an end much sooner.
But with the market being saturated with so many new payment services, it can be overwhelming to keep track of which one of these is best for you. We’re here to help you out though, by taking a look at two popular payment apps, Cash App and Venmo, and make a side by side comparison to help you make an informed choice.
A Brief Overview: Cash App vs. Venmo
Venmo and Cash App are both peer-to-peer payment apps that allow people to send and receive money easily, with just a few taps on the screen. Using either app, users can transfer funds from a linked bank account, or a credit union account, to another user.
They are both free to use, with the only fees assessed when you cash out. Both apps allow you to carry an in-app balance that is separate from your bank account balance, which you can cash out separate from the linked bank account. You also have the option to use a physical cash card that will allow you to withdraw cash at an ATM.
What makes Venmo different is that has a more social feel to it. It’s like having a social media account like Instagram or Facebook, just with money transfers. Venmo users can send messages, and even post details on what they’ve been spending their money on. You can, of course, set this to private.
Cash App, on the other hand, is a lot more streamlined in its operations and does not have such social features. Cash App also offers its users the ability to buy and sell Bitcoin directly from the phone app.
Adding Funds: Cash App vs. Venmo
Adding funds on either app is fairly straightforward, thanks to both platforms being very user-friendly. Here is a brief run-down of how you do it on each one. Of course, we’ll be assuming that you’ve already linked your bank account on either app.
1. Cash App
First, go you your Cash App home screen, then tap the “Banking” button. Tap the “Add Cash” option, then you will be prompted to choose your desired amount. Tap “Add” then enter your PIN or Touch ID to confirm.
Once at Home Screen, tap the options icon (☰) at the top of the screen. Tap the “Manage Balance” option, then tap “Add Money”. Enter your desired amount, then tap the “Next” button. Choose from which bank account you want to take money from if you have more than one linked. Review the information and tap “Add Money” once you’re satisfied.
Fees and Transfer Limits: Cash App vs. Venmo
There are two ways you can cash out on either app, a free transfer, and an instant transfer. Free transfers, as the name suggests, don’t charge anything, but the transaction may take up to three days to complete. Instant transfers are usually done within a few minutes. For Venmo, instant transfers cost a 1% fee with a minimum of $0.25 and a maximum of $10.00. For Cash App, you’ll be charged 1.5% of the money you’re cashing out as your fee.
Venmo has a transfer limit, where you can only send $299.99 a week initially, and $4,999.99 once you’ve verified your account (check updated Venmo payment limits).
Cash App, on the other hand, has a $7,500 sending limit and an unlimited receiving limit, but will ask for proof of your identity every time you send more than $250 a week, or receive more than $1,000 a month. (1)
Customer Support: Cash App vs. Venmo
Both apps’ customer service can be contacted via e-mail. Cash App itself doesn’t have a toll-free number, but you can call 855-351-2274 for automated help. Venmo, on the other hand, has a phone number that users can contact, 855-812-4430, where they can talk to a customer service agent during office hours.
Security: Cash App vs. Venmo
As major players of the financial sector, both of these apps face plenty of security challenges. Luckily for their users, the apps’ programmers made the necessary steps to maintain the financial security of their users. All information is highly encrypted and as such, both are highly praised by their respective users and reviewers at keeping their transactions safe.
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Venmo Pros and Cons
- Doubles as a social network platform.
- Ease of use- it takes a few steps to set up and use your account.
- The platform offers a debit card to use for your Venmo account.
- Free ATM withdrawals using the MoneyPass network.
- Instant payments
- Transfer limit
- Unable to cancel transactions.
- Lack of Customer Service via Live Chat.
- 3% fee if you do transactions using your Credit cards.
- $2.50 ATM withdrawal fee ($0 using MoneyPass® ATM).
- 1% fee for the instant transfer.
Cash App Pros and Cons
- Ease of use
- No fees for person-to-person transfers.
- Cash App account comes with a Cash Card.
- ATM fees are reimbursed if you receive, at least, a direct deposit of $50 or more a month. (2)
- Can buy and sell Bitcoin through the App.
- Rewards program
- Instant payments
- No live customer support via Phone.
- You will need to verify your identity if receiving more than $1,000.
- $1,000 ATM withdrawal limit in a 7-day period.
- $2 fee for ATM withdrawals using the Cash Card.
- 1.5% fee to cash out money instantly.
- Poor company’s communications.
- Funding your Cash App account by credit card costs 3% fee.
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Both payment services do the job well enough, where one isn’t necessarily better than the other. Whichever one you choose ultimately depends on your personal preferences. Many people simply use whichever app that the majority of their friends or family use. Now that you know more about how either works, the decision should be a lot easier.