Cash App vs Venmo (Complete 2022 Guide)

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Cash App and Venmo are two common peer-to-payment money transfer services.  Both of these apps allow users to send and receive funds from other people. Once received, users can opt to hold the funds in their in-app wallets or transfer the money to their bank accounts. 

While both Cash App and Venmo appear similar, they are different in terms of their features, fees, and limits.

Read on to learn more about the differences between Cash App and Venmo, and what makes each app unique. 


In This Post:


Is Venmo or Cash App Better?

The truth is that none of these apps is better than the other. It all depends on your needs.

Cash App allows you to send and receive money from other users. The platform enables you to transfer funds, make payments in stores and online, earn rewards, and also invest in cryptocurrency and stocks. 

Users can also receive their paycheck via Cash App and enjoy a tax refund through direct deposit.

On the other hand, Venmo makes it easy for users to send and receive money from a fellow Venmo account holder. You can pay for goods/services from member businesses, share bills at a restaurant, and purchase cryptocurrency.

Is Cash App safer than Venmo?

Both Cash App and Venmo are P2P money transfer apps and none is safer than the other.  They all use data encryption, multi-factor authentication, purchase verification, and fraud protection to protect your account information.

According to Consumer Reports, you can keep your Cash App and Venmo account safe by using these apps with family or friends you trust. 

Ensure you enable fingerprint or PIN confirmation and check that the recipient details are correct. Always update your app as old versions are susceptible to hackers. 

What is the difference between Venmo and Cash App?

Although Cash App and Venmo appear to have similarities, they are two different applications. 

Some of these differences include

  1. Social Aspect

One differentiating factor between the two is that Venmo has a social approach to money transfer. 

Venmo has a social feed that allows you to view your friend’s transactions.  While you can’t see how much money they received or sent, you can tell who they received money from or to who they transferred funds. Users can also view the caption for the transaction and the transaction date.

Additionally, users can comment or like transactions. As a Venmo user, you can change the privacy settings to make your transaction history private, public, or friends-only.

  1. Investing  Options

Venmo also allows users to invest in cryptocurrencies like Ethereum, Litecoin, and Bitcoin. The platform also has short videos that help new users to learn about crypto and the coins available.

However, Cash App doesn’t display your transaction to other users or friends. It doesn’t have any social aspect to it.

While Cash App allows users to invest in crypto, it only has Bitcoin as the only cryptocurrency. Users can invest in bitcoin or stocks using their linked debit card or cash balance. Furthermore, ash App users can get started in investing for as little as $1.

  1. Transfer Limits

Another difference between the two apps is the limits. Cash App has a $1,000 limit per month, but this limit can be increased by verifying your identity. One thing to note about Cash App is that limits vary by user for verified accounts.

Venmo has a $299.99 per week limit for unverified users. However, verified Venmo users can transact between $5,000-$7,0000 per week. Venmo also allows combined weekly spending of $7,000.

Cash App charges 1.5 % for instant transfers, while Venmo charges 1.5%-5% with a minimum of $5 for fast access to cashed checks. 

  1. Payment Methods

Both Venmo and Cash App have payment methods such as a linked bank account, a debit card, a credit card, or account balance. 

Nonetheless, Cash App also allows its users to use Google Pay and Apple Pay by connecting these accounts to their Cash Card.

Venmo has Amex send feature that lets its users use American Express credit cards without incurring the standard credit card fee. There are no rewards for using a credit card, but it’s a convenient way to enjoy free transfers. 

  1. Filing Taxes

Apart from allowing you to send, receive, and invest, Cash App has a new feature that allows you to file your taxes. Venmo doesn’t have this feature. 

  1. International Availability

Cash App is available in the US and UK, while Venmo is only available in the US. 

Differentiating FactorsVenmo Cash App
Fees1% for instant transfer, 3% for transfers via credit card1.5% for instant transfers and 3% for transfers via credit card
Transfer LimitsUp to $299.99 per weekUp to $1,000 per month
International TransfersNoUS and UK
Transfer Speed3-5 business days for free withdrawals1-3 business days for standard deposits
ExtrasSocial features, bill splitting Buy stocks, cash card boost
Payment MethodsDebit card, credit card, bank accountDebit card,  GPay, credit card, bank account, Apple pay

Are Venmo and cash App FDIC insured?

Venmo and Cash App are not FDIC insured. That means if anything happens, you won’t be reimbursed automatically as the money is not federally backed. 

Does Cash App or Venmo Work internationally?

Both Cash App and Venmo have a huge presence in the U.S.

Venmo states that the sender and receiver need to be present in the U.S. for a Venmo transaction. The platform is only available in the United States. 

Cash App is only available in the United States and the United Kingdom. Users in the UK and US can send and receive money at no extra cost.  

If a Cash App user in the U.S. sends money to the U.K., it’s converted to GBP depending on the market exchange rate at the time of payment. 

How much are fees with Cash App and Venmo?

Both Cash App and Venmo have an almost similar fee structure. They don’t charge a fee when you send money, unless when using a credit card. Cash App and Venmo don’t charge any fees for standard transfers.

Cash App has a 3% fee charged when sending money via a credit card. However, users can send money for free from a bank account or debit card. Although standard transfers to your bank account are free, Cash App will charge you a 1.5% fee for an instant transfer from your Cash App account to your linked debit card. 

Cash App has a $2 ATM withdrawal fee and charges 2-3% when buying Bitcoin. One unique thing about Cash App is that it reimburses fees on three ATM withdrawals every 31days and up to $7 in fees per operation. 

Business accounts on Cash App also incur a fee of $2.75% on each transaction.

Venmo charges a 3% fee when sending money through a credit card. Users can enjoy free transactions when they fund it with their bank account, Venmo balance, or debit card. The app also charges a 1% fee for instant transfers from your Venmo balance to your debit card.

Venmo users incur 1.5%-2.3% for cryptocurrency transfers and $0.50if under $25. The platform doesn’t charge for in-network ATM withdrawal but charges $2.50 out of network.

Business account users incur a standard non-refundable fee of 1.9%+0.10 on each seller transaction. Note that if a Venmo user pays a business with a credit card, the 3% fee isn’t charged. 

What are the Limits of Cash App and Venmo?

Cash App has a transfer limit of $1,000 per 30 day period for unverified users. You can only send $250 per seven-day period if your account is unverified. 

Cash App unverified accounts can only receive up to $1,000 per 30 -day period.

Venmo unverified accounts can send up to $299.99 per 7-day period, but they don’t have a receiving limit. Verified Venmo accounts can send up to $4,999.99 in person-to-person payments per 7-day period.


Wrapping Up

Both Cash App and Venmo have their unique features and the app you pick will depend on your financial preferences and needs,  Cash App and Venmo are convenient apps to send and receive money. You can enjoy free money transfers at standard transfer times. 

Nonetheless, if most of your friends and family use Venmo, it only makes sense to use Venmo. Additionally, if you’re interested in investing in stocks, Cash App is an excellent platform, but cryptocurrency enthusiasts have more options with Venmo.

Once you understand the differences between each app, you can better decide on whether to opt for Cash App or Venmo. 

References

  1. https://cash.app/legal/us/en-us/cash-payment-terms
  2. https://help.venmo.com/hc/en-us/articles/360043677373-Business-Profiles-FAQ
  3. https://cash.app/help/hu/en-gb/1108-cash-card
  4. https://venmo.com/resources/our-fees/
  5. https://help.venmo.com/hc/en-us/articles/1500003204302-Business-Profile-Fees-
  6. https://cash.app/help/us/en-us/3087-cash-card-atm-fees
  7. https://cash.app/help/uk/en-uk/3057-international-payments-exchange-rate
  8. https://cash.app/legal/hu/en-us/tos
  9. https://cash.app/help/us/en-us/3103-bitcoin-fees

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