Cash App is an application developed for sending and receiving money and the major factor behind its immense popularity is the application being free of charge. Talking about this, one essential detail to be kept in mind is that not all features of this application are free, as Cash App charges many amounts of fee.
For example, for instant deposits the fee is 1.5%, for ATM withdrawal it charges $2 fee, and a 3% fee charge by making payments through credit card. You may have heard about the term clearance fee a lot right? We will be giving you a detailed account on what clearance fee is and how much clearance fee does Cash App charge.
What is a Clearance Fee?
Clearance fee is a very widely used terminology and is most commonly used in banks etc. It is the fee that is charged by banks, payment issuer or any other service provider to clear and complete the transactions with the aid of their own facilities. This fee settles the payments within banks, brokers and customs.
This is not a huge digit, but a very small of the total payment amount which is used to clear the trade or payment. This clearance amount is charged by the bank or any other payment issuer prior to delivering a service in order to settle the matter of trades.
What is Cash App Clearance Fee?
Cash App, unlike other financial platforms, does not charge a clearance fee from its customers. It does charge a 1.5% fee if you make an instant deposit from Cash App balance to your debit card, a 3% fee if you use a credit card for any purpose etc.
But there is absolutely no clearance fee at all. But the question arises why does Cash App not charge a clearance fee while all other paying platforms do? The answer is pretty simple. As clearance fee involves the charging of fee by some third party for completing the transactions and Cash App does not have any such involvement of third party in its payment procedures, so it does not charge any clearance fee at all.
There are many sites where such terms as Cash App clearance fee are mentioned. What does this mean? We will provide you an insight on where this term originates and why is it affiliated with Cash App.
Is Cash App Clearance Fee a Sugar Daddy Scam?
You may have heard about a Cash App Sugar Daddy Scam before. Such scams are very popular on this finance related platform and normally occur through social media sites like Instagram, Twitter, Facebook, Reddit etc. These scammers target any individual on social media and deprive them of their money through various tactics.
Here’s how this clearance fee scam works: A fraudster will try to contact you on any social media platforms and will pretend to be your Sugar Daddy. He will promise you a bright future and will also try to make a deal with you. He will then tell you that he will be paying you a huge amount of money as well as your monthly expenses in return for this friendship. Normally this offer is way too attractive for people to neglect, and many people put forward a positive answer in return. What happens next is the most interesting.
They will then slowly and gradually start asking for your personal details. They will ask for account details to send you a large sum of money, let’s suppose $2000 and will then show you a fabricated image of the pending amount. These scammers then ask you to pay a clearance fee of $200 on this amount to receive the payment. As soon as the person pays the fee, the scammer disappears and is never to be found again.
Automatic Deposit Fee for Cash App
After Clearance Fee scams, the scammers have now come up with a new tactic, that is, Cash App Automatic Deposit Fee scam. There are no such amounts charged by Cash App and they are very far from reality. Although a feature called Cash App Direct Deposit does exist, this procedure involves direct payments from employers and this service is also free of cost.
One thing the user must keep in mind is that, never trust any email other than the official one which is requiring your personal data and also, Cash App has a direct way of payment.
Cash App Business Account Clearance Fee
Does Cash App charge a clearance fee for Business accounts? Well, the answer is again a straight no! Cash App is a totally free application, however it charges a small fee when receiving an amount from customers through business accounts.
There are other fee charges too, as mentioned in the aforementioned paragraph, but such clearance fees have no clear basis and are completely false. These propaganda and scams on this platform must be completely avoided by limiting the interaction with strangers on social media.
Cash App Attorney Fee
Like clearance fee and automatic deposit charges, Cash App Attorney Fee is a scam too and you must be completely aware of all such scams. Don’t believe any person asking you for a fee either on social media, SMS, email or a call. Only legit information is available on Cash App’s mobile application and its official website.
Scams are common on every platform and Cash App is a victim of it too. Cash App Clearance Fee and Automatic Deposit Fee are all scams and they have absolutely no relation with the application. So, you have to avoid all such scams and only believe what you see on the original application itself.