Personally I too nearly fell into the Cash App Clearance fee scam when I first started using the app.
Then I researched online and came across a website (I think it was Laurens from reallyneedcash.com) that told me to avoid paying as they are all scams.
So, if you’re a new Cash App user and like my old self, I will help you out with this.
Does Cash App Have a Clearance Fee?
No, Cash App does not have a clearance fee for transactions. According to the Cash App’s Official Website, there are no hidden fee charges, such as clearance fees and to avoid paying for it, it is likely a scam.
There is no such thing as a “Cash App clearance fee.” It’s a made-up fee to trick people into sending them money only for them to disappear and you’ll never see your money again.
What is a Clearance Fee?
A clearance fee is a fee that is charged to send or receive money. The fee is charged on the total payment to clear a trade.
How Much Does Cash App Clearance Fee Cost?
$0 because there are no fees for clearing payments on Cash App.
That’s right, you heard me correctly. According to Cash App’s official website, there are no fees associated with clearing payments on Cash App. You don’t have to pay anything extra to get your money cleared and transferred to your wallet.
Someone is Sending me Money from Cash App and Asking me to Pay the Clearance fee. Should I pay it?
No, a bit fat No.
Don’t fall for it. It’s just a way for scammers to get your hard-earned money.
I mean they are always innovating and I gotta give it to them, they can be really creative and come up with all sorts of schemes to trick you.
What is Cash App Clearance Fee Sugar Daddy?
Okay, I have heard enough, and it’s irking me about something that’s been going around on Cash App lately called the “Sugar Daddy” scam.
Basically, here’s how it works:
A nice-looking gentleman will contact you on Cash App and offer to be your “sugar daddy.” Now, they promise to send you a large amount of money if you’ll just pay a small “clearance fee” first.
What does that sound like? A scam? Yes exactly!
The scammer might say that the fee is necessary to release the funds, or that it’s required by Cash App (which it doesn’t by the way).
I don’t wanna ponder on it long but, here is the quick run down, The “Sugar Daddy” scam on Cash App is a fake scheme that usually preys on people’s desire for quick money.
I repeat don’t fall for it!
But that doesn’t mean that there are no legitimate fees on the app.
How to Pay Clearance Fee on Cash App?
I have told you earlier that there is no Cash App clearance fee, but if you do need to pay a legitimate fee on Cash App, here’s how you can do it.
- Open Cash App
- Tap on the Activity tab
- Find the payment you want to pay the fee for and tap on it.
- Tap on the three dots
- Select “Pay Fee”
- Enter the amount you need to pay.
- Choose your linked debit card or bank account to make the payment.
- Confirm the payment and you’re done!
Again I have to remind you that this is only to pay for legitimate fees.
Cash App Fees
| Transaction Type | Fee |
|---|---|
| Sending money with a bank account | $0 |
| Instant transfer using a debit card | 0.5%-1.75% (minimum of $0.25 cents) |
| Sending money with a credit card | 3% |
| Investing | $0 commission fees from Cash App (possible government fees for trades) |
| Buying/selling cryptocurrency | Varies (often between 2% to 3%) |
| ATM withdrawals | $2.50 per withdrawal without direct deposit (additional operator fees may apply at out-of-network ATMs) |
| Fee to get money faster (Instant deposit) | 0.5%-1.75% (minimum of 25 cents) |
| Fee for using a credit card to send money | 3% |
Cash App does not charge a clearance fee. But that doesn’t mean there are no other fees.
There are fees for certain transactions, such as using a credit card to send money or transferring money instantly to your bank account.
What Are Cash App Transaction Fees and How Can You Avoid Them?
There really isn’t much leeway, but you can adjust a bit here and there to avoid paying those fees.
- Use a Debit Card to avoid charges and fees on credit card transactions of 3%
- Avoid fees by opting for the standard deposit option instead of the instant deposit option. (You are sacrificing time for money here).
Can Cash App be Used for International Transactions?
No, Cash App can’t be used in international transactions.
So, if you’re planning to travel abroad and use your Cash App, make sure to have an extra card on board.
Should Cash App be used for your freelance business?
Cash App is a good option for your freelance business in the US, especially if you’re dealing with clients who prefer online transactions.
As a freelancer, you need easy payment access and this app just fits in the box.
But don’t take my word for it, do your due diligence (study their fee structure, percentages, tax, etc.) and see if it’s the right one for you.
What are the Cash App fees for receiving money?
- No fees for receiving money from someone who has a Cash App account
- 1.5% fee for instant deposits from non-Cash App users
- 1.5% fee for instant transfers to your bank account
- Free transfers to your bank account if you’re okay with waiting for 1-3 business days
Cash App Chargeback and Dispute Fees
- Chargeback fee: $20 per dispute (depends)
- Dispute fee: $0 (There is no fee to file a dispute)
- Cash App Support fee: $0 (There is no fee to contact Cash App Support)
If you are confused, I will simplify it for you. Let’s say you file a dispute and it is found that the transaction was authorized, you may be charged a $15 research fee.
This fee is to be used in order to cover the cost of investigating the dispute.
