Cash App vs Venmo: Which Is Best for Fees & Safety in 2024?

Cash App and Venmo are two of the most commonly used peer-to-peer (P2P) mobile payment apps in the United States. If your friend and family also have accounts, you'll be able to easily send and receive money from them instantly.

Established in 2009 and now owned by PayPal, Venmo has had a head-start against Cash App. While Cash App was founded in 2013 and offers similar services, it has largely caught up to Venmo (and exceeded it in a few cases) thanks to its banking, trading, and international features.

This guide covers the differences between Cash App and Venmo to help you choose the best smartphone app for your needs.

Cash App vs Venmo: Which is Safer?

Cash App and Venmo are both digital finance platforms regulated as Money Transfer Services in the United States. Both use two-factor authentification and high-end encryption to keep your money and data safe. Although they were founded recently, both companies are trusted by tens of millions of customers across the US.

Is Cash App Safe?

Neither platform has the status of a duly-license bank, but Cash App does offer more financial capabilities than Venmo. When you verify your Cash App account, you will receive a routing number and checking account number to hold cash balances with their bank partners. The FDIC will cover eligible Cash App accounts up to $250,000 per customer.

With Cash App, you may trade stocks on the stock market. Their brokerage services are provided by Cash App Investing LLC, which is a member of both FINRA and SIPC. You must be aware that investing involves risk and that you may lose money. Investing balances are not covered by FDIC insurance.

Is Venmo Safe?

Venmo uses high-security measures to keep your payments and your data safe and secure. It may be ideal to deposit your Venmo funds into your bank account though because Venmo funds will not be FDIC-insured unless you sent money through eligible means: Direct Deposit or the cash-a-check feature. In these cases, your money will be stored in one of their partner banks.

With both apps, you may purchase cryptocurrency. In both cases, crypto balances will not be covered by FDIC insurance.

Cash App vs Venmo: Which Has the Better App and Service?

You can download the Cash App and Venmo apps on any iOS device via the App Store, any Android device via Google Play, or a web browser. As we will find in this section, both are excellent for use between friends and family. When deciding which to choose, you may want to look at their standout features that we detail below.

Similarities Between Cash App and Venmo

As peer-to-peer payment systems, both offer very similar services for sending and receiving money:

• Sending and receiving money: You can send money to individuals and pay businesses easily and instantly. Both apps allow you to top up the account by bank transfer, debit and credit card, or direct debit.
• No hidden fees: Both are free to download and neither charge monthly membership fees. If you need to send money immediately to your linked bank, which usually takes a standard 1 to 3 days, then both offer instant transfers for a service fee.
• Transfer limits: New and unverified users will have sending and spending restrictions. The verification processes will require documentation and identity verification.

What is the Difference Between Venmo and Cash App?

Cash App and Venmo do differ in a few financial service categories, including international transfers, investing, and filing taxes. We walk through these differences in this section:

1. Payment Methods

You can connect the Cash App Cash Card with either Google Pay or Apple Pay. Venmo's debit card works with Google Pay too but does not support Apple Pay. If you have an American Express credit card, then you can use Venmo's Amex Send feature to send money with it, and not have to pay the standard credit card fee.

2. International Payments

Cash App supports free international money transfers between Cash App users in the United States and those in the United Kingdom. Not only do they charge zero fees, but Cash App also uses the real mid-market exchange rate (as opposed to pocketing an exchange rate margin).

This is honestly an astounding and incredible feature when compared to other international money transfer services. Venmo does not support international transfers.

3. Investing

Cash App's brokerage service lets you buy publicly-traded stocks without charging commission fees. Venmo does not offer an investment platform. However, you can buy Bitcoin, Ethereum, Bitcoin Cash, and Litecoin on Venmo. Cash App only supports Bitcoin. Investing and cryptocurrency both involve the risk of you losing money.

4. Credit Card

Venmo and Cash App both offer Visa debit cards that give discounts at select brands. Venmo stands out with its Visa credit card by Synchrony Bank. While it does not offer an actual line of credit, and only uses your Venmo balance, you can earn points and pay no annual credit card fee: Earn 3% on your top spend category , earn 2% on your second top spend category , and earn 1% on all other eligible purchases.

5. Filing Taxes

Both apps will issue a Form 1099-K for businesses that use their platforms to get paid for goods and services. You cannot use Venmo for personal tax reporting. Cash App, on the other hand, does process personal tax filings and tax refunds. It is both convenient and 100% free. If you are an individual using Cash App to buy stocks, Cash App will also send you Composite Form 1099.

Cash App vs Venmo: Which Has the Cheaper Fees?

Cash App and Venmo are free to download, have no account opening fees, and charge no monthly fees. It's completely free to send and receive money from a linked bank account, debit card, or another user.

ATM Withdrawal Fees

Cash App charges $2.00 per ATM withdrawal with its debit card but will waive ATM fees for eligible customers. To become eligible, you must receive $300 or more in direct deposits per month on the app.

Venmo charges $2.50 per ATM withdrawal with its debit card. However, you can get free withdrawals with the Venmo debit card at MoneyPass ATMs within the US. Find MoneyPass ATMs by using this ATM locator.

Credit Card Transfer Fees

In both apps, you can link up your credit card info to your account. You can send money or make payments with that linked credit card, but both companies will charge a fee.

• Cash App: 3%
• Venmo: 3%

Instant Transfer Fees

Standard transfers between your account and a linked bank account will take around one to three days to process. You can opt to send an instant transfer, but both will charge a convenience fee for the service.

• Cash App: 0.5% to 1.75%
• Venmo: 1.75%

Business Transaction Fees

This section only applies to business profiles. If you are a business that uses Cash App or Venmo to accept payments from customers in exchange for goods and products, then you will have to pay for the service. Both financial platforms charge a fee to process those business transactions. In contrast, Stripe takes 2.7% + $0.05 per sale.

• Cash App: 2.5% per transaction (2.75% when accepting credit card payments)
• Venmo: 1.9% + $0.10 per transaction

Cash App vs Venmo: Which Do Customers Review Better?

With tens of millions of customers each and millions of reviews, Cash App and Venmo are the two most popular and highly-trusted P2P networks in the United States. In this sense, we don't see a clear winner.

Cash App scored 4.7 out of 5 stars on Google Play over Venmo's score of 4.1. Venmo fared better on the App Store, with 4.9 out of 5 stars, while Cash App got a 4.8 on the App Store.

In the end, we think it's safe to say that both services, by and large, impress their customers.

Cash App vs Venmo: The Bottom Line

If you intend to use these apps primarily to receive money or pay friends and family, then you can't go wrong with either option. Your decision may simply come down to which app is more widely used in your circle of acquaintances.

For additional features, like a credit card with no annual fee and access to more kinds of cryptocurrency, Venmo will be the better choice. To buy stocks, send money to the United Kingdom for free, or use Apple Pay, Cash App may be a better choice. Cash App's free tax filing feature may also make it the more appealing app.