Regular transfers to your checking account are free, but may take a day or two. If you want instant access to the funds, Cash App charges 1.5 percent of the transaction. For example, if you transfer $50, you pay a $0.75 fee. It doesn’t sound like a lot, but if millions of people do this a day, it adds up, giving Cash App revenue for such a small task.
2. Credit Card Transfers
If you use a credit card to transfer funds to a friend or pay your hairstylist, for example, Cash App charges a 3 percent fee. That $50 transaction now costs an extra $1.50.
3. Bitcoin Fees
Cash App allows you to buy and sell bitcoin cryptocurrency with your Cash App balance. The service was originally free, but now Cash App charges two fees – a service fee of up to 1.76 percent of the transaction and a price volatility fee which ranges from 1 percent to 4 percent. What this means is Cash App may buy Bitcoin from one trader for a price lower than what they sell it to another trader for, pocketing the difference and increasing their revenue.
4. ATM Fees
Users can use their Cash App debit card at any ATM. The Cash App charges a $2 fee for the service. This is in addition to any fees the bank charges for themselves. If you have direct deposit, the Cash App does reimburse the ATM fees, but if you don’t, they make $2 per transaction.
5. Making Money from Businesses
Businesses that accept Cash App payments pay a transaction fee, just like they would on a standard credit card purchase. The Cash App charges businesses 2.75 percent of the transaction amount. If you paid for your hair cut using the app, for example, and it cost $35, the merchant would pay Cash App $0.96 for that transaction. This is an example of Cash App making money from businesses just for accepting Cash App payments.