Cash App is a popular payments app from Square Inc. [now called Block Inc.] that makes it convenient to send, receive money, and make payments. If you are using Cash App to buy goods or services, you may have the question -“Does Cash App has buyer protection?”
The simple answer is:
Cash App does not offer any buyer protection and is meant to be used only for making payments to the person you know and trust.
But there is an option to raise disputes for limited transactions, which you have not participated in.
This is the reason why Cash App is often used by a lot of scamsters, who exploit the system to conduct frauds. If you feel there is a scam conducted, the first thing you should do is contact Cash App Support and block your Cash App Card on the App.
The important point to note is that Cash App is not to be used for any dealings with strangers especially when it comes to business transactions -whether you are a seller or a buyer, there are high chances of scams if you are sitting on either leg of the transaction.
Cash App has shared information on various types of scams, that you should be aware of to avoid falling prey and keep your money safe.
Also, any payment on Cash App tends to be instant and irreversible by the design of its app.
Does Cash App Have Buyer Protection
Cash App does not have any buyer protection and is not meant for commercial transactions, unless you know and trust the seller. However, you can report and file a dispute for certain transactions.
Also, when a transaction is conducted by using Cash App by directly pulling money from a bank account or credit card, instead of Cash App balance, you may be able to dispute such transaction directly with your respective bank or card issuer, if it is allowed as per your bank terms.
Again the scope to dispute transactions on Cash App is very limited and does not cover scenarios where you have not received a good or service or not as intended, which is what the Buyer protection will generally cover.
If you don’t receive the goods or services for payment or they are not as intended, Cash App does not have buyer protection as provided by some popular peers i.e. PayPal and Venmo Buyer protection.
What transactions can be disputed on Cash App?
As per the Cash App website, you can file a dispute for the following transactions:
- Where the outcome of a transaction was not as expected e.g. when a merchant charges you the wrong amount or it is a duplicate transaction.
- Fraudulent transactions can also be disputed. But here you need to look at their definition of fraudulent transaction.
A fraudulent transaction is one that you did not participate in. e.g. where your account was compromised or your Cash Card has been lost or stolen.
This is an important detail to note -Fraud transactions are ones that you have NOT participated in.
So if you get tricked into doing a transaction that turns out to be a fraud, it can be a grey area and may be difficult to recover.
So you can only file disputes on Cash App for purchases that you can prove you did not authorize.
To be able to file a dispute, it should be reflected under a settled transaction. If it is still showing under “Pending”, you can follow up directly with the merchant.
As per Cash App, the first recourse is always to contact the merchant, if it can help in your case.
To file a dispute for a Cash Card transaction, you will need to select the transaction in Cash App. To do so:
- Open Cash App and log in
- Tap on the “Activity tab” on your Cash App home screen
- Select the transaction in question and tap the 3 dots icon … on the top right corner of the screen
- Select “Need Help & Cash App Support”
- Tap “Dispute this Transaction”
Cash App Precautions- You must take
Always remember that the security of your money is your personal responsibility first and no matter how secure an App, there are increasing scams where users get tricked.
It is best to avoid using Cash App for any dealings with strangers and not engaging with them.
In general, avoid maintaining a large balance on Cash App, as your Cash App funds may not always be covered by FDIC insurance (unless you have the Cash Card) and does not earn any interest.
Even when you link a bank account or card to Cash App, try to use a bank that is not your main account and where you hold a small balance.
You should also regularly keep a tab on your Cash App transactions to catch anything that appears out of the ordinary.
Keep yourself aware of various scams including Customer Support Scams, where people fake to be Cash App Support Staff.
Never engage in unsolicited calls (disconnect the call) and absolutely avoid sharing any confidential details like a PIN or making transactions over such call.
You can check the different types of scams on the Cash App website.
If you notice a fraudulent transaction, immediately report your card as lost or stolen and contact support.
Is Cash App Safe to Use?
Cash App is designed to be used with people you are familiar with and whom you can trust. It is not meant to do business transactions with strangers.
That being said, Cash App does have its own security checks that include encryption and algorithm checks. You also have options to set PIN and touch id to keep your account safe.
Cash App is prone to fraud due to its growing popularity. But in the case of most scams, users end up participating as a victim, either due to lack of awareness or otherwise.
It is better to err on side of caution and use Cash App only with your family and friends, whom you can trust.
Cash App also mentions that to avoid falling such scams, it is only prudent to pay for any purchase via Cash app where you know the buyer and have received a good or service first and not on any promise of the seller to deliver on a future date.
Since Cash App cannot guarantee a refund if you don’t receive what you pay for, it’s safer to send money over Cash App once you meet the buyer in person and receive whatever has been promised to you.
So Cash App does not offer any buyer protection and is best to be avoided for purchase transactions, where you don’t know the seller.