In today’s globalized world, the ability to send and receive money across borders quickly and conveniently is of utmost importance.
With the rise of digital payment platforms, more and more people are turning to mobile apps to handle their financial transactions.
Cash App, a popular peer-to-peer payment app, has gained significant traction in the United States.
However, many users wonder if Cash App works internationally.
In this comprehensive guide, we will explore the international capabilities of Cash App, including its limitations, fees, and alternative options.
Does Cash App Work Internationally?
Cash App, developed by Square Inc., is primarily used for domestic transactions within the United States. However, the app does offer limited international functionality.
While Cash App can be used internationally, there are certain restrictions and considerations that users should keep in mind.
International Transactions: Understanding the Basics
Additionally, the sender needs to link a suitable funding source, such as a bank account or a debit card, to their Cash App account to cover the transfer amount.
Supported Countries and Currencies
Cash App allows users in the United States to send and receive money to and from users in the United Kingdom (UK) and Canada.
Currently, Cash App only supports transactions in US dollars (USD), British pounds (GBP), and Canadian dollars (CAD). Users from other countries will not have access to international transactions on the platform.
Limitations on International Transactions
While Cash App does facilitate international transfers, there are some limitations to be aware of:
- Inbound Transfers: Cash App users in the UK and Canada can receive funds from users in the United States, but they cannot send money internationally.
- Outbound Transfers: Cash App users in the United States can send funds to both UK and Canadian Cash App users, but they cannot make direct transfers to users outside those countries.
- Conversion Fees: Cash App charges a foreign exchange fee of 3% for transactions involving different currencies. This fee is calculated based on the current exchange rate at the time of the transaction.
- Service Availability: Availability of Cash App’s international services may vary, and certain features may be restricted or temporarily unavailable in some regions.
Alternatives to Cash App for International Transactions
PayPal is one of the oldest and most widely recognized online payment processors in the world.
With a presence in over 200 markets and supporting 25 currencies, PayPal offers a comprehensive international transaction service.
The platform charges varying fees for different types of transactions, but its exchange rates are often competitive and user-friendly. However, PayPal’s fees tend to be higher than some newer alternative platforms.
Wise is another leading payment platform that offers fast, affordable international transfers. The platform supports over 80 countries and allows consumers to transfer money in 54 currencies.
With Wise, the exchange rate is locked in at the time of the transfer, so there are no surprises when it comes to fees.
Additionally, Wise’s fees are generally more transparent and upfront than other platforms. The company also boasts of saving its customers over $4 billion in currency exchange fees.
Venmo, owned by PayPal, is widely used in the United States for peer-to-peer payments. However, it does not offer international transaction capabilities, making it unsuitable for users seeking cross-border financial transfers.
Xoom, owned by PayPal, allows users to send money to over 130 countries in multiple currencies. The platform provides fast and affordable services for emergency and routine international money transfers.
Xoom’s fees are generally competitive, and the company guarantees transparency and upfront costs.
Another advantage of using Xoom is that the recipient does not necessarily need to have a bank account to receive funds. Instead, they can choose to utilize cash pick-up services at thousands of locations around the globe.
Fees for International Transactions with Cash App
When using Cash App for international transactions, there are several fees that users need to be aware of. Here are the most important ones:
Foreign Exchange Fee
Cash App charges a foreign exchange fee of 3% for transactions that involve different currencies.
This fee is added as a markup fee on top of the transaction amount, and it is calculated based on the current exchange rate at the time of the transaction.
When withdrawing Cash from an ATM outside of the US, Cash App charges a $2 fee for each transaction. This fee is applicable on top of any international ATM fee that is charged by the ATM provider.
Cash Card Fees
Cash App’s Cash Card, a debit card linked to a user’s Cash App account, also includes fees for international transactions.
For instance, there is a 3% foreign exchange fee for making purchases outside the US with the Cash Card. There is also a $1 fee for each ATM withdrawal outside the US.
For Cash App users who want to buy, sell, or withdraw cryptocurrencies, there is an additional fee for blockchain processing and network fees.
These fees vary based on the blockchain’s congestion level, the cryptocurrency, and the transaction volume.
How to Make International Transactions with Cash App Easier
To make the most of using Cash App for international transactions, consider the following tips:
Know the Exchange Rate
One critical factor that affects the cost of sending or receiving money internationally is the exchange rate.
To save on fees, it is essential to stay informed and compare exchange rates across different platforms before sending funds.
While Cash App may be convenient for domestic transactions, one should compare its fees with those offered by other platforms for international transfers.
Consider alternative options to ensure you are getting the best exchange rate and lowest fees.
Choose Suitable Funding Sources
Cash App allows users to connect various funding sources like bank accounts, debit cards and credit cards.
To avoid costly cross-border fees, it is advisable to use a funding source with lower fees, like a bank account.
Verify Recipient Information
To avoid delays and complications, it is crucial to make sure that the recipient’s information is accurate before making a transfer.
Ensure that full names, account numbers, and other relevant details match the recipient’s identification documents.
Use Wi-Fi for Transactions
When making international transactions on Cash App, ensure that you use a secure Wi-Fi connection to complete the transaction.
Using a mobile data connection or public Wi-Fi puts you at risk of losing connection and exposing you to fraudulent activities.
Set Transaction Limits
To minimize the likelihood of fraud or mistakes, users can customize security settings and transaction limits on their Cash App account.
Set up two-factor authentication, link your phone number to your account, and use a strong password to secure your account.
Given the limitations of Cash App’s international functionality, it is advisable to plan your transfers in advance.
This helps to minimize any inconvenience, as well as potential delays or restrictions.
Cash App, although primarily designed for domestic use, does offer limited international transaction capabilities.
Users in the United States can send and receive money to and from users in the UK and Canada.
However, it is important to keep in mind the restrictions, fees, and limitations associated with international transactions on Cash App.
For users seeking greater versatility and broader global coverage, alternative platforms such as PayPal and Wise may be more suitable options.
Remember to compare fees, stay informed about exchange rates, and plan ahead to make the most of your international transactions.