what bank does cash app use for direct deposit

What Bank Does Cash App Use for Direct Deposit

April 9, 2022

Cash App is a money transfer service from the United States of America. The company also works in the UK, and users between the two countries can send money. The service is not a bank but a peer-to-peer mobile wallet to transfer money. However, it offers services similar to those of banks and credit unions. You can get a debit card, carry out a direct deposit, pay bills, and so on. But what bank does Cash App use for direct deposit?

Mobile wallets usually collaborate with banks to offer services. Cash App also works with a real bank to offer direct deposit services, as we shall see shortly. The bank holds the money for the platform’s users and avails it whenever necessary. You also find that the service requires you to add a bank account or debit card when opening your account. The card or bank account is to help you to fund your transactions when your balance is not sufficient. 

We have other applications that work the same as Cash App. They include PayPal, Payoneer, and Venmo, among others. To open an account, you need to visit the platform’s website online or download the relevant application from Google Play or App Store. Once you finish, you can enter the necessary details to open your account. Opening an account is straightforward, and you do not need a lot of things to complete the process. 

How to open a Cash App account?

Opening an account happens online when you visit the platform website or app. Once you finish opening the account, you can then top up your account for use and reload when necessary. You can also apply for the company’s cash card debit card and use it for transactions.

When you reload your account, the money becomes available on the card. There are many ways I can reload my Cash App card, as we shall see later on. To get started with the platform, you need to; 

  • Download the application for iPhone or Android
  • Create your Cash App account
  • Link Cash App to your bank account
  • Add money to your Cash App

To open a Cash App account, you need to follow the procedure below. 

  • Tap on the application to launch it
  • Next, enter your mobile phone number or an email 
  • Enter the secret code sent via text or email
  • You can invite others to sign up with the platform and earn cash if you like. However, this is optional. 
  • Enter your debit card details to link your bank to the service 
  • Choose a $Cashtag username 
  • Enter your zip code

At this point, you can use your account for various transactions. 

How to use Cash App?

what bank does cash app use for direct deposit

There are various ways you can use the service to better your life. They include the following.

i) Payment of goods and services

Once you open your account, you have the freedom to purchase goods and services at places that accept the service. You require the $Cashtag username of the person or business selling/offering services, and you are good to go. You can also use the phone number or email address.

Interestingly, you can also pay bills such as electricity, water, internet, and much more with your account. Paying bills is one way to get money off Cash App without a card or bank account

If you apply for a Cash Card debit card, you can use it to pay for goods and services. You need to provide your card number, the security code, and the card’s expiry date online. You can also use the card at physical stores by swiping or tapping the register to make your payments. 

ii) Send money

As I mentioned earlier, the service is a peer-to-peer platform that allows you to send funds to others. You require the recipient’s user name or phone number. An email address also works. Sending funds over the platform is free of charge as you do not have to pay any fees.

The recipient gets the money immediately unless there are any technical hitches. One can also transfer money from Cash App to a debit card as we shall see later on. You can use the process below to send funds.

  • Tap the $ on the main screen
  • Enter the amount of money to send 
  • Tap Pay and select an $Cashtag, email, or Phone number
  • Add a suitable note (optional)
  • Hit on Pay to finish your transaction

The recipient should receive the funds in their accounts within a short time. 

iii) Receive money

Apart from sending funds to others, the platform also allows you to receive funds. You may have a business or personal account whereby others require your username, email, or phone number to transfer funds to your account. You can also request funds from others in the following manner.

  • Tap the $ on the main screen
  • Enter the amount of money to request
  • Tap Request and select an $Cashtag, email, or Phone number
  • Add a suitable note (optional)
  • Hit on Request button to finish 

The concerned user should see the message as soon as you request and act accordingly. Receiving money from others is one reliable way to add money to Cash App without a debit card

iv) Withdraw money to a bank account

Cash App allows you to transfer funds to a bank account. When opening your account, the bank account you added is the same one you can use to withdraw money. To transfer funds to a bank, you can follow the process below. 

  • Hit the Balance tab on your home screen.
  • Tap Cash Out.
  • Choose an amount and tap Cash Out.
  • Select your preferred deposit speed.
  • Confirm with your PIN or Touch ID.

You can also instantly transfer money from Cash App to a debit card. When you choose an instant deposit, you must use a debit card. However, the instant transfer comes at a fee whereby you have to part with a 1.5% fee and a minimum of $0.25. The funds appear in your account instantly or within 30 minutes. If you want to avoid fees, you can opt for the standard transfer and wait for 1-3 business days for the funds to reflect. 

You can also transfer money to online banks as Cash App supports all banks. Chime is one of the online banks where you can transfer money using the platform. Again, you can also transfer money from Chime to Cash App when you add the bank details to the platform. 

You can also use Cash Card to withdraw money at an ATM point. The card works at any ATM, but you have to pay a $2 fee charged by Cash App. 

v) Trade

The service allows you to buy and sell Bitcoin. That way, you can make money out of your account. You can also buy stocks and benefit from the business. Even other online platforms such as Chime allow you to trade and earn money. After that, you can transfer money from Chime to your bank account for other uses.

How to top up Cash App?

There are various ways you can add funds to your Cash App account for various kinds of transactions. The ways below are helpful in the process. 

i) Request money from others

Earlier on, I gave you the procedure to request money. Receiving funds from others adds money to your account. 

ii) Add from a linked bank or debit card

Adding funds from a bank account is a popular way of topping up your account. You can follow the procedure below to add money. 

  • Hit the Banking tab on your home screen
  • Tap Add Cash
  • Choose an amount
  • Select Add
  • Use Touch ID or your PIN to confirm

iii) Direct deposit

Banks use direct deposits to transfer funds to other banks. Cash App accepts direct deposit, and all you have to do is provide your routing and account numbers to the relevant institution. If you are employed or receive government benefits, you can use Cash App to receive the funds. The good thing about using the platform is that you receive your payments earlier than traditional banks. 

You can also use direct deposit to send money to banks. When using the transfer method, you transfer money using the routing number and account number. Direct deposit is secure, although it takes longer to complete compared to another method called wire transfer. 

What bank does Cash App use for direct deposit?

As I mentioned earlier, Cash App collaborates with banks to offer services. Cash App uses Lincoln Savings Bank for direct deposit. Therefore, you have to provide the bank’s name as Lincoln Savings Bank. The bank is a member FDIC which insures up to $250,000 per account, meaning your money is safe. If the platform collapses, you will still get your funds intact. 

Can you cancel a Cash App transaction?

Sometimes, you can unknowingly send money to the wrong person, thus canceling the transfer. If you send funds to someone, not on Cash App, the money can stay pending until the recipient opens an account to claim the funds. You can cancel such a transaction.

However, if you send money to someone on Cash App, the transfer is instant, and you cannot reverse the funds. You can only request the recipient to reverse the funds. 

Bottom line

Cash App is a money transfer platform that allows you to send and receive funds online. It operates only in the UK and the US. There are various ways you can add money to the platform, including requesting funds from others, using a bank account, or direct deposit. You must open an account online with the platform to use its services. 

Posted by Spencer Tierney
Spencer Tierney is a writer and expert on certificates of deposits at transfermone.com. His work has been featured by USA Today, MSN, SF Gate, the Los Angeles Times, NerdWallet and more. He earned a bachelor’s degree in English at UC Berkeley.