Security is one of the important factors that consumers consider when choosing a financial platform or bank to use for money transfers and payments.
Cash App has become one of these popular financial platforms with millions of active users. But is Cash App FDIC insured? Here’s all you need to know!
Is Cash App FDIC Insured in 2023?
The money in your Cash App account is insured by FDIC if you have a Cash Card in 2023. This insurance is offered through Cash App’s partner banks, known as FDIC pass-through insurance provided in case of a bank failure. However, FDIC insurance doesn’t cover Bitcoin and investing Cash App balances.
Read on for more information about whether Cash App is FDIC insured, which banks work with Cash App, if Cash App is safe, and other facts!
What Is FDIC?
The Federal Deposit Insurance Corporation is an independent federal agency that was created by Congress to maintain public confidence and stability in the country’s financial system.
This institution insures bank deposits; therefore, in case a bank goes out of business, the FDIC will cover the money in the customers’ accounts.
Another role of the FDIC is to supervise banks and make sure that they meet requirements and follow customer protection laws.
Therefore, when a bank or financial institution has FDIC protection, you can be sure that the money you keep in the account will be safe.
Does FDIC Insure Cash App?
According to Cash App, the money in your account balance is insured by the FDIC through their partner banks if you have a Cash Card.
Therefore, in case of a bank failure, the FDIC will cover eligible accounts up to $250,000 for each Cash App customer.
Are Cash App Bitcoin and Stock Investing FDIC Insured?
Apart from sending and receiving money, you can use Cash App for Bitcoin and stock investment. However, the Bitcoin and investing balances aren’t covered by FDIC insurance.
Therefore, as you invest and use your money for these functions, keep in mind that you could lose all the money in case the bank collapses.
Does FDIC Cover Money Lost From Fraud?
In case your Cash App account is scammed or hacked, you won’t access FDIC coverage for this.
Rather, FDIC insurance is only offered for deposits by financial institutions; therefore, it’s restricted to when your bank goes out of business.
Also, this insurance is not extended for individual transactions, so you’ll need to follow up with Cash App itself.
What Banks Work With Cash App?
Since Cash App isn’t a bank, it partners with two different banks, Lincoln Savings Bank and Sutton Bank, to facilitate customer transactions.
Sutton Bank issues the Cash App Card while Lincoln Savings Bank manages the direct deposits.
Therefore, FDIC insurance is associated with these two banks that work with Cash App to provide customer services.
Will Cash App Refund Money If Scammed?
Cash App monitors customer accounts and the platform closely to spot fraudulent activities.
If a fraudulent payment happens, Cash App can cancel it to prevent you from being charged. These funds will be instantly returned to the Cash App balance or linked bank account.
In most cases, Cash App will refund your money if you’re scammed. You can log in to your account, locate the fraudulent payment, and request a refund in the following steps:
- Log in to your account
- Click on the clock icon on the top right-hand corner of the screen
- View recent activity
- Go to the fraudulent transaction
- Look for the “Cancel” link. If there’s no cancel link, you can tap on the “Refund” option
- Click “Ok.”
Is Cash App Safe?
Cash App is a safe financial platform because it uses fraud detection and encryption technology to secure consumer money and data.
Therefore, all the information you submit on Cash App is encrypted and safe whether you’re using a private Wi-Fi connection or data service.
Additionally, Cash App also uses similar fraud detection infrastructure and safety measures that Square Point of Sale transactions uses.
As well, this financial platform is PCI Data Security Standard (PCI-DSS) Level 1 compliant.
How Can You Protect Your Cash App Account?
Although Cash App has FDIC insurance and they use cutting-edge technology to ensure your security, you can utilize the following tips to protect your own accounts:
- Only send money to people and companies that you know and trust.
- Avoid sharing your personal details such as PIN, SSN, or any other sign-in codes with anyone else.
- Avoid responding to strange Cash App emails. Cash App official emails will only come from @square.com, @squareup.com, and @cash.app.
- If any “Cash App” email contains links from other websites, avoid opening such links, as these could be a scam.
- Enable text and email notifications for each payment to keep track of all transactions.
- Sign out immediately if you use another device to access your Cash app account.
- Change your password in case you receive an unsolicited sign-in code via email to protect your money.
- Activate Security Lock on your Cash App payments where you need to add a passcode.
To know more, you can also read our posts on what is Cash App bank name and address, why your money is not showing up on Cash App, and why Cash App is taking your money.
The money in your Cash App account is insured by FDIC if you have a Cash Card.
This insurance is offered through Cash App’s partner banks, known as FDIC pass-through insurance provided in case of a bank failure.
However, the FDIC insurance doesn’t cover Bitcoin and investing Cash App balances. Additionally, FDIC doesn’t cover these transactions if you lose money from fraud.