The Ultimate Guide to Credit Cards
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Do Prepaid Cards Work on Cash App?

Do Prepaid Cards Work On Cash App

credit card advice

Ashley Dull
By: Ashley Dull
Posted: October 21, 2020
Advertiser Disclosure

Cash App is a peer-to-peer payment platform that gained a massive following because of its simplicity, versatility, and user-friendly interface. Developed by Square Inc., this P2P app makes it easy to send money to friends and family for free using their phone number, email address, or $Cashtag.

Most bank accounts, debit cards, and credit cards work on the app, but what about other options? Do prepaid cards work on Cash App? If not, what are the alternatives?

Let’s explore Cash App’s payment policy to review your options.

Government-Enabled Prepaid Cards Work on Cash App

According to the list of supported cards for Cash App, most government-enabled prepaid cards are accepted, as well as all debit and credit cards from Visa, Mastercard, American Express, and Discover. However, you can only send money to someone using a government-enabled prepaid card — you cannot deposit money from Cash App to your card.

This specific type of prepaid card is used for unemployment benefits, economic relief payments, and other government-issued payments. So, a prepaid card you pick up in-store or online will not work on Cash App — only those that are mailed to you from the government.

Which Cards Are Accepted on Cash App?

Cash App accepts credit cards and debit cards from Visa, Mastercard, Discover, and American Express. However, the app does not currently accept business debit cards, ATM cards, or PayPal cards. Users can add a bank account to Cash App or direct-deposit paychecks into their Cash App account.

The following cards are our top-recommended credit cards to use on Cash App:

Discover it® Cash Back Review

at Discover Card'ssecure website

BEST OVERALL RATING

★★★★★
4.9

OVERALL RATING

4.9/5.0
  • INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
  • Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
  • Plus, earn unlimited 1% cash back on all other purchases - automatically.
  • Redeem cash back in any amount, any time. Rewards never expire.
  • Use your rewards at Amazon.com checkout.
  • #1 Most Trusted Credit Card according to Investor’s Business Daily.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 14 months
0% for 14 months
11.99% - 22.99% Variable APR
$0
Good/Excellent

BEST OVERALL RATING

★★★★★
4.8

OVERALL RATING

4.8/5.0
  • Earn 100,000 bonus miles when you spend $20,000 on purchases in the first 12 months from account opening, or still earn 50,000 miles if you spend $3,000 on purchases in the first 3 months
  • Earn unlimited 2X miles on every purchase, every day
  • Miles won't expire for the life of the account and there's no limit to how many you can earn
  • Receive up to $100 application fee credit for Global Entry or TSA Pre✔®
  • Redeem on travel—including flights, vacation rentals, car rentals and more. Plus transfer your miles to over 15+ travel loyalty programs
  • No foreign transaction fees
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
17.24% - 24.49% (Variable)
$95
Excellent, Good
Chase Freedom Flex℠ Review

at the issuer'ssecure website

BEST OVERALL RATING

★★★★★
4.8

OVERALL RATING

4.8/5.0
  • Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
  • Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter!
  • Earn 5% on travel purchased through Chase, 3% on dining at restaurants and drugstores, and 1% on all other purchases.
  • No annual fee.
  • 0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.
  • No minimum to redeem for cash back. Cash Back rewards do not expire as long as your account is open.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR on Purchases 15 months
N/A
14.99% - 23.74% Variable
$0
Good/Excellent

+ See More Top-Rated Credit Cards

Note that payments made with a credit card require a 3% fee, which is in line with Venmo and other P2P apps. This means opening a free bank account and linking your account/debit card to Cash App is the most affordable way to utilize the service.

How Does Cash App Work?

If you’ve ever used PayPal or Venmo, you’ll already be familiar with the functions of Cash App. Link a payment account, send/receive money virtually, and transfer funds to your bank account as needed.

Here’s a quick guide of Cash App basics:

How to Create a Cash App Account

Start by downloading Cash App on your Apple or Android device. After creating an account, you can also sign in online to access your account on your computer.

Follow the prompts to create your Cash App account. You’ll need to link at least one bank account to the app to start. You can add debit and credit cards to the account later on, but you need a bank account for the initial setup.

Cash App Logo

Download the Cash App on your phone and follow the prompts to create an account.

One of the prompts will ask you to create your $Cashtag, which is a unique username that other people can use to send you money.

After you’ve followed all the necessary steps, you’ll have a Restricted Account. You can use this to send money from your bank account or deposit money you’ve received into your bank account, but you cannot send money from your Cash App balance to another user.

If Sharon sent $50 to your Restricted Account, you couldn’t send $20 of that to Bill. You’d have to send Bill money from your bank account, or deposit Sharon’s money and then send it to Bill.

To upgrade to an Unrestricted Account, you will need to verify your identity, including your name, date of birth, mailing address, and last four digits of your Social Security number. This process may take a few days to complete, but you will then have a fully-functional account.

Cash App Fees

There are no fees for most Cash App services. However, if you send money with a credit card, you will be charged a 3% transaction fee. You can avoid this by sending money from a debit card or bank account instead.

The only other fee you may be charged is an Instant Transfer fee, which is 1.5% of your deposit with a minimum of $0.25 charged. An instant transfer is when you request a real-time money transfer to your debit card. If you transfer money to your bank account, there is no fee, but you’ll have to wait 1-3 business days for the funds to post.

How to Send Money With Cash App

To send funds to another Cash App user, follow these steps:

  1. Open Cash App on your phone.
  2. Enter the amount of money you’d like to send and hit the Pay button.
  3. Enter the phone number, email address, or $Cashtag (username) for the person you’d like to send money to.
  4. Add a description for the transaction, and then hit Pay again. Then the funds will be on their way!

You can send funds from your bank account, credit card, debit card, or Cash App balance.

How to Receive Money On Cash App

There are two ways to receive money on Cash App. Someone can send you money using the instructions above, or you can request money from one or more people on the app.

Here are the steps to request money on Cash App:

  1. Open Cash App on your phone.
  2. Enter an amount of money and hit Request (the bottom-left button).
  3. Choose people from the list provided, or manually enter the person’s $Cashtag.
  4. Add a note for the transaction, then hit Request.
  5. If the recipient approves the request, they will be prompted to complete steps for payment.

Transfer Limits On Cash App

With a Restricted Cash App Account, you can send up to $250 in a 7-day period and receive $1,000 in a 30-day period. If you verify your mailing address, birthday, and last four digits of your SSN, you can increase Cash App limits.

Verified account holders can send up to $7,500 per week and receive an unlimited amount of funds.

How Does the Cash Card Work?

The Cash Card is a free debit card connected to your Cash App account. It allows you to use the funds in your Cash App Balance just as you would a debit card tied to your bank account.

Swipe the Cash Card anywhere Visa cards are accepted, and the funds will be pulled from your account balance. It’s that easy.

How to Order a Cash Card

Cash App Cash CardTo order a Cash Card, you must be 18 years of age or older. Select the Cash Card tab on the app’s home screen, and press the Get Free Cash Card button. The app will ask a few questions to verify your identity and find out where you’d like to receive your card.

It may take up to 10 business days to receive the card in the mail, but that time frame may be delayed based on your identity verification steps.

Cash Boosts on Cash Card (Discounts for Select Purchases)

The Cash Card offers Cash Boosts, which are special savings you can activate for select merchants. For instance, you can save 10% on DoorDash transactions when paying with a Cash Card.

You can only activate one Boost at a time, but you can switch between Boosts as much as you want. Make sure you activate the new Boost before swiping your card, and you should receive the corresponding discount.

To activate a Cash Boost, follow these steps:

  1. Open the Cash Card tab on the app’s home screen.
  2. Select Save with Boost.
  3. Browse through available Boosts and select one that you’d like to use. Then press Add Boost.
  4. Use your Cash Card with the corresponding merchant.

Some Cash Boosts have minimum purchase limits to receive the discount. You can only use a Boost once per hour, and you cannot apply a Boost to a cash back transaction.

Cash Card ATM Withdrawal Limits

The Cash Card does support ATM cash withdrawals, but there are transaction limits to keep in mind. The ATM you use may also have a withdrawal limit, separate from Cash App’s settings. Here are the ATM limits for Cash Card:

  • Up to $310 per transaction
  • Up to $1,000 per 24-hour period
  • Up to $1,000 per 7-day period

Let’s break that down a bit. You can withdraw $1,000 on Monday, but then you have to wait until the following Monday to withdraw more money. If you withdraw $600 Monday and $400 Tuesday, you’ll be able to withdraw another $600 the following Monday.

Cash back at a register also counts toward your withdrawal limit.

Note: If you check your account balance using an ATM, it will display as $0, regardless of how much money is in there. Use the app on your phone for an accurate reflection of your Cash App balance.

Cash Card Fees

There are no monthly fees or transaction fees on the Cash Card. Cash App does charge a $2 ATM fee per withdrawal, in addition to the fee the ATM provider charges. You can have those fees waived if you receive a direct deposit of $300 or more into your Cash App account each month.

Is Cash App a Bank?

Cash App offers many bank-like services, but it is not a bank. Even though the Cash Card is issued by Sutton Bank, the bank never actually holds the funds. Thus, the funds in your Cash App Balance are not FDIC-insured as they would be in a traditional bank.

You can use your Cash App and Cash Card much like you would a checking account and debit card, but at the end of the day, you’re using an app, not a bank.

Credit Or Debit is Best On Cash App

While Cash App doesn’t accept prepaid cards in the traditional sense, those who’ve received government benefits — including Economic Impact Payments and unemployment benefits — via a government-prepaid card can still use the app to send money.

This is a nice convenience given that many of these people don’t have traditional bank accounts set up, but the difficulty arises when depositing money onto the card. That’s when you’ll need to use a credit card or open a free bank account so you can link it to your Cash App account and unlock all the services offered.

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