Founded in February 2018, Cash App by Square Inc. has become a reputed name in the world of money-transfer services. Millions of customers trust Cash App because of its amazing features. For the convenience of users, the platform rolled out yet another feature called Direct Deposits.
It enables the users to get money directly in their account. Collaborating with Lincoln Savings Bank, Cash App is authorized to provide users a new account number and routing number for using Cash App Direct Deposits.
Direct deposits are private and secure funds. In fact, the payments are encrypted and customers get a one-time login pass-code every time they try to sign into the Cash App. Now, customers can deposit paychecks, tax returns to their Cash App balance and pay bills using their account and routing number.
Benefits of using Cash App Direct Deposit feature:
For the people who are overcharged by traditional financial institutions or the ones living in under-banked areas, Cash App offers a quick method to access banking services through direct deposits. Here are some of the major benefits of Cash App deposits:
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- Cash App deposits have no hidden charges.
- Users can receive paycheck or other deposits, which can be directly used as Cash App balance.
- After setting up Cash App direct deposits, a new account or routing number is generated that is not associated with the bank account. It is useful wherever a VISA card is accepted. You can use this deposit for making investment or buying bitcoins, or just sending money to a friend.
- In the US, the government provides various unemployment benefits with the help of Cash App direct deposit stimulus packages. These funds are supposed to be a small source of financial help, especially amid the pandemic situation.
How to set up and enable Cash App Direct Deposit?
In order to enable direct deposit on your Cash App account, you need to be at least 18 years old, possess an activated Cash App card and a verified Cash App account. If you are eligible to set-up direct deposit, then you can follow the directions given below:
STEP 1 – Use your Cash App routing number:
- Launch the Cash App on your phone and login into your account.
- Tap the ‘Banking’ tab ($ icon) located at the right side of the screen.
- Select ‘Deposits & Transfers.’
- Click the ‘Copy Details’ option.
- Once you have copied the details, move on to the next step.
STEP 2 – Get Cash App direct deposit form:
- Go to the ‘Banking’ tab on the home screen.
- Tap ‘Deposits & Transfers.’
- Scroll down to select the ‘Get Direct Deposit’ option.
- When prompted for a bank account, provide the Cash App routing number.
- Enter your employer’s information, the funds to be deposited from each paycheck and provide your signature.
- Click ‘Email Form’ and send it to the HR department to receive the pay-checks via Cash App direct deposit.
NOTE: Once you have filled your direct deposit form properly, you can view the complete form any time by tapping ‘Get Direct Deposit Form’ under the ‘Banking’ section and click ‘View Previous Form.’
Cash App Instant Deposit Fee
Cash App offers Instant Deposits to the user’s linked debit card and Standard Deposits to the bank account. The major difference between two deposits is that the latter is free and it arrives within 1-3 business days, while Cash App Instant Deposit allows the users to receive the funds instantly on their debit card.
Cash App charges are generally incurred in a few cases. One such case is Cash App Instant deposit. If you opt for instant deposits, then you will have to pay a 1.5% commission (with a minimum fee of $0.25) as Cash App Instant deposit fees.
Time taken for Cash App Direct Deposit
The entire process takes around 1-3 business days to process the transaction and settle into the account. This time duration is required for direct deposits to go through Automated Clearing House (ACH). If the fund is deposited on a business day before 5 PM EST, then it will settle around 11 AM EST the very next day.
If the Cash App direct deposit is done on a holiday or weekend, then you may have to wait for the following day as the funds will appear in your Cash App account later due to the non-business day.
Cash App Pending Deposit
Direct deposits are usually available in your Cash App card instantly. However, there are instances when a direct deposit fails or remains pending. When you see a Cash App pending deposit status, then you need to take action. Before you do that, you must find out the root cause of this problem. There could be possible reasons for pending status to occur on Cash App:
- Direct deposit may not reflect in your Cash App account if you exceed the daily limit. Cash App Direct Deposit limit is $10000 per day. In this case, you can ask the sender to divide the payment into two parts and then, the Cash App Direct Deposit limit would not pose any problem.
- Cash App Direct Deposits might fail if the sender has entered wrong account details. Make sure that you share the correct account and routing number with your employer. Otherwise, your deposits will be declined.
- Slow internet connectivity could also be an issue.
- You must check whether you have the updated version of Cash App or not.
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If the direct deposits continue to be delayed from the scheduled arrival time, then you must contact the Cash App customer support team to resolve your issue.
One of the major advantages of using Cash App is that you can receive direct deposit almost two days earlier than many other banks.