Cash App Disputes

Today most financial transactions in the United States and the United Kingdom are done through mobile application services. One of these application services is CashApp, which is a mobile payment service, downloadable to any available iOS and Android devices; it is an application that goes beyond the traditional P2P or Person-to-Person transactions. It allows you to access banking services and the use of debit cards through its bank partners. 

These banking services include money transfers, purchase or sale of stocks or Bitcoin, and lending money to institutions with interest called money creation.   Security and safety features in CashApp provide protection to you through the use of your PIN entry, Touch ID, Face ID verification, encryption, and security of Bitcoin storage. While access to CashApp is easy, convenient, and smooth, you must remain vigilant to potential scammers, questionable transaction disputes, or charge disputes. 

  1. Key Features of CashApp 

CashApp provides these key features, which are accessible at your fingertips. However, like all other mobile payment services, you must not only be knowledgeable of these features but also be vigilant and responsible in their use.

  1. Peer-to-Peer or P2P Payments. It is a form of money transfer created by Block Inc. that requires you to link your debit card or bank account with CashApp. Once you establish the link, you can send money to your family, friends, or sellers/vendors using the recipient’s email address or mobile phone number easily, while keeping your bank account data private and confidential. Generally, CashApp does not charge  any fee for this particular service.
  1. Cash Card. CashApp provides a physical debit cash card that allows you to withdraw from ATMs or make onsite purchases of merchandise or services. 
  1. Investing. On the mobile application of Cash App, you can buy and sell stocks and Bitcoin. This is a good start for beginners to venture into manageable investments which will earn a good cash supply. 
  1. Cash Boost. It is a save-money feature in CashApp which allows you to save money instantly in the form of instant discounts when you use your Cash Card at select or participating merchants only. No instant discounts can be had on non-participating merchants.
  1. Direct Deposit. This free feature allows you to receive your paychecks or pension funds directly into your CashApp account.You can receive a maximum of $25,000 per direct deposit and a maximum of $50,000 within a 24-hour period. Simply inform your employer or the government agency of your CashApp account and routing number or you fill in a direct deposit form in the app itself. Generally, it takes between 1-5 business days for the paycheck or pension to be reflected in your account. 
  1. Bitcoin Transactions. CashApp allows you to send, receive, and deposit Bitcoin to other CashApp users either directly or through lightning or blockchain. You can deposit up to the maximum amount of $10,000 worth of Bitcoin in any 7-day period. However, CashApp supports only Bitcoin (BTC) and not any other currency like BCH and BSV and it provides only the records of your Bitcoin transactions on CashApp. Transactions of other exchanges will not be reflected on your CashApp account.
  1. CashApp for Business. CashApp has a business account called CashApp for Business which helps small and medium businesses to accept payments and manage their businesses easily. However, it does not work with high-risk businesses or those considered to have a higher risk of chargebacks, frauds, or financial failure, e.g. trading on margin, adult industry, airlines and bookings, Amazon stores, debt collections, and the like.  This account is free to create; however, CashApp automatically deducts a processing fee of 2.75% per payment you receive on your account. 
  1. CashApp Wallet. This is your digital wallet where you save your money and make payments using your mobile device. You can send and receive money, buy and sell Bitcoin, invest in stocks and Exchange-Traded Funds (ETFs),or  withdraw cash from ATMs; however, it is not available for international transactions.
  1. Security. To ensure the security of your data and account, CashApp uses cutting-edge encryption and fraud detection technology. It is PCI Data Security Standard (PCI-DSS) Level 1 compliant to minimize the risk to the Visa system. Its common security features include Personal Identification Number (PIN) protection, biometrics (fingerprint and face recognition) or Touch ID and Face ID verification, two-factor authentication; likewise it can also disable your Cash Card when it is not used. Moreover, CashApp preserves all your data using its own servers and third-party service providers in Japan, Canada, the United States of America, and the European Union countries.
  1. Fees. Basic transactions are generally free; however, minimal fees are taken with certain services, e.g. instant transfers or using credit cards to add funds.

B. CashApp Charges on Transactions

CashApp charge refers to a fee or cost associated with your use of either the features or services of the mobile application. These activities include the following:

  1. Instant Transfers or  Instant Deposits. A real-time transfer or deposit from your CashApp balance to your linked bank account costs a 0.5% – 1.75% fee for each transaction.
  1. Sending money through Credit Cards. This particular service costs a 3% fee for every transaction.
  1. Bitcoin Transactions. Buying, selling, or sending Bitcoin or cryptocurrency costs a 2% – 3% fee for every transaction.
  1. Cash Card ATM Withdrawals. An ATM withdrawal using your Cash Card costs a USD2.50 fee for every transaction. However, an ATM withdrawal without the use of your Cash Card costs USD2.00-USD2.50 fee for every transaction
  1. Business Transactions. Transactions related to business activities cost a USD 2.75% processing fee on each payment received.
  1. Foreign Exchange. A charging fee for currency conversion is charged in transactions involving the sending or receiving of money in currencies other than your default currency.

C. Dispute a Transaction on CashApp

CashApp dispute a transaction refers to a challenge you make concerning the veracity and authenticity of the transaction made through the use of the mobile application. These dispute transactions involve those that are made erroneously, fraudulently, or manifestly showing a breach in the agreed terms of the purchase or service, e.g. damaged items, incorrect items, incorrect service rendered, or incomplete service. 

Most disputes are usually focused on payments transacted on your debit card or on your credit card through your use of CashApp. However, bank transfers and transfers from CashApp are not eligible for disputes.  

Before initiating a dispute with CashApp, you must do the following:

  1. Contact the Merchant.  To dispute a Cash Card transaction, you must call the merchant and explain the fraudulent transaction or error in the transaction, e.g. damaged item, incorrect item, incorrect service, or incomplete service.  Mention the date of purchase, the product purchased or service received, and the amount paid. Request a refund of the amount.
  1. Merchant’s Refusal to Refund. If the merchant refuses to refund the amount within 10 business days from the date of your call, inform this merchant that you will be filing a dispute for this Cash Card transaction with CashApp.

D. Procedure on CashApp Dispute 

You can dispute a charge on CashApp and a CashApp dispute transaction to resolve issues with transactions made using your Cash Card following the process which CashApp provides. 

  1. Process of Dispute. Start the dispute immediately after you notice an unauthorized or an error in your transaction.  You can raise a dispute only with completed transactions or when the merchant receives payment; you cannot raise a dispute for pending transactions or transactions which are in the process of being authorized because you can easily settle these in 7-10 business days by calling the merchant and rescinding the transaction. Be familiar with the process of dispute which CashApp provides at the time you avail of its features and services. 
  1. Open CashApp. On your mobile device locate the CashApp icon. Tap it to open the app.
  1. Activity Tab. Tap the clock icon located at the bottom right corner of your screen; this is the Activity tab. When it opens, you will see a list of your recent transactions or transaction history.  Read the enumerated transactions and select the transaction that describes your dispute.
  1. Select Transaction. Tap the selected transaction. Then tap the ellipses symbol or the three dots to view the transaction details.
  1. Ellipses Symbol. Within the transaction details, select the Need Help & CashApp Support option. Tap this option to start the dispute process.
  1. Initiate Dispute. Tap Dispute this Transaction. Then select from the enumerated options that best describes your situation or your dispute, e.g. Unauthorized Payment or Transaction Issue.
  1. Provide Details. Follow the prompts to provide any needed information to support your selected dispute. When prompted, state your identity, your account, and the transaction in dispute. Then explain the issue, provide documentary evidence, such as screenshots of receipts, and answer all relevant questions that the CashApp customer support may ask.
  1. Submit Dispute. After providing all the necessary details and evidence related to your dispute, submit your dispute. 
  1. Investigation of Dispute. CashApp and your bank  will investigate your dispute and all relevant and material evidence attached to it. The investigation takes at least 10 business days; however, should it exceed 10 business days, you will be provisionally refunded the dispute amount, all its associated fees, or interest. Should they require any additional explanation or evidence to aid their investigation, they will notify you. Your response for additional evidence is crucial and you must comply immediately upon receipt of this notice. Failure to do so may result in a denial of your dispute.
  1. Waiting Period. Remain calm and objective during this waiting period while CashAPP and your bank investigate your dispute; however, should you feel it has taken longer than 10 business days and you have not received any response or any update from the team or where you have not received notice of a provisional refund of the disputed amount,  any associated fees or interest, contact CashApp customer support for assistance and inquire the cause of its delay in resolving your dispute, or its failure to provide you a provisional refund, any associated fees or interest of the disputed amount. The investigation should be completed in 45 business days. Monitor your  CashApp account or your email for any updates from CashApp customer support.

To connect with CashApp customer support for assistance and inquiry, tap your profile icon on the upper left corner of your screen. Scroll down and select Cash Support and choose either its email address or an in-app chat to talk to customer support.

  1. Resolution. Generally, the timeframe for a resolution is between 3-15 business days from the completion of the investigation; the number of days of the investigation is dependent on the simplicity or the gravity of your dispute.  CashApp may either resolve your dispute in your favor and refund you the transaction amount, all associated fees, or its interest or may deny your dispute and you pay the transaction amount, any associated fees or interest to the merchant. 

E. CashApp Dispute Timeline

How long does a CashApp dispute take? It depends on the simplicity or the gravity of the dispute. Hence, it is beneficial that you are familiar with the dispute process timeline to guide you during your waiting period.

  1. Initiation of Dispute. Within 48 hours from the initiation of the dispute, CashApp gets back to you for additional information and/or evidence.
  1. Dispute Investigation. Within 10 business days, CashApp and your bank will investigate your dispute claim, which includes a review of the details of the dispute transaction or charge and its supporting documents. Should the investigation take more than 10 business days, your bank will provisionally refund you the disputed amount as well as any associated fees or interest to you. If CashApp rejects your dispute during its investigation for lack of evidence or insufficient evidence, it removes the provisional refund, any associated fees or interest, and returns the same to the merchant. 
  1. Dispute Resolution.  Within three days from the end of CashApp’s and your bank’s investigation, they will inform you of the resolution of your dispute.  CashApp should explain fully its findings, explain its reasoning behind the rejection of your dispute, provide you with documents to support its resolution, and inform you that you can exercise your right to review any documents it used to reject the CashApp dispute.  However, should you disagree with its findings and resolutions, you may consult consumer protection lawyers, noted for their expertise who can provide you guidance or assistance with your dispute.

F.  Application of EFTA in dispute

The Electronic Fund Transfer Act (EFTA) is a federal law that establishes the rights and responsibilities of consumers and financial institutions on electronic fund transfers. The EFTA and its implementing rule, Regulation E,  set up rules for electronic fund transfers (EFTs) of consumers and  protection in instances of errors in billing, unauthorized transactions, and disputes concerning electronic fund transfers in mobile applications like CashApp.  

More specifically, EFTA applies to CashApp disputes in the following cases:

  1. Unauthorized Transactions. These are transactions made without your knowledge, consent, and personal approval.  When you notice an unauthorized transaction in your CashApp account, you should report this promptly. It is mandatory that CashApp investigates and resolves the dispute in accordance with EFTA guidelines.
  1. Fraudulent transactions. These are transactions orchestrated through fraud, e.g. identity theft, phishing, or swindling, which you can dispute under the EFTA.
  1. Incomplete transactions. When you did not complete your transaction or you initiated a transaction but it did not push through because of technical issues or internet connectivity  and your account was deducted a specific amount to pay the merchant, you can dispute this under EFTA. 
  1. Different product or service in completed transaction. These  completed transactions refer to those which you initiated, completed, and paid but you received a product or service which is notably different or below par from that which they offer. You can dispute this under the EFTA.
  1. Error Resolution. EFTA establishes the process for resolving errors in electronic transfers. When you notice that an error transpired in your CashApp transaction, you should immediately notify CashApp. It is mandatory that CashApp investigates the validity of the error and corrects the same.
  1. Timely Investigation and Responses. EFTA mandates that CashApp responds promptly to your dispute and follows the timeframe for investigation and resolution.

G.  CashApp and Fraud

CashApp is an online platform that is susceptible to scammers and fraudsters. It is important that you know  the most common instances where you can be a victim of fraud in your use of this online platform. Be vigilant and responsible in using CashApp and its features. 

  1. Phishing Scams. Scammers send you fake emails or text messages, or social media messages allegedly coming from CashApp and provide you a link for you to click. The link then asks you to enter your login credentials and your  private and confidential information related to your account, which will authorize them to control your account and your money.
  1. Impersonation Scams. Scammers pose as your friend, relative, or office colleague and request you to send them money through CashApp for reasons that are acceptable to you, such as cash shortage, medical emergency, or credit investment. Upon receipt of the money, they vanish and upon inquiring into this request, your friend, relative or office colleague denies making this request for money from you.
  1. Sale of Fake Products or Services. Products or services are for sale in the marketplace or in any social media like Facebook and Instagram, which upon receipt of your payment through AppCash, the scammers will send you your purchased products or services; however, you will receive a knockoff, cheaper or useless item or service than the advertised product or service.
  1. Investment Scams or Ponzi Schemes. Scammers create websites that promise high returns or investment opportunities through CashApp. 
  1. Prize scams. Scammers can use this reward or prize scheme. Even though you have not purchased a product or lotto tickets or taken part in a raffle, they inform you that you have won a considerable amount of money and then they will advise you to claim your prize by sending to them a specific amount of money using your CashApp. 
  1. Overpayment Scams.  In an online marketplace, scammers may overpay you for an item you are selling and then demand you return the excess amount through CashApp. Then after the purchase, they will reverse their initial payment leaving you with no payment at all.
  1. Cash Flipping Scams. Unlike the Ponzi scheme which involves many CashApp users to participate in order to complete the money pyramid, this scam promises you a cash flipping money modus where you send money only once through CashApp. The scammers pledge that this amount will immediately triple in amount in a few days. However, after receiving your money, the scammers vanish and you cannot locate or contact them for a refund of your money.
  1. Fake Customer Support. Fraudsters pretend to be CashApp customer support representatives and ask for your sign-in code, Personal Information Number (PIN), or One-Time Password (OTP) for money transfers or payment.
  1. Fake transactions. This type of fraud is common and easily dupes you into believing that the transaction is legitimate and authentic. The scammer deposits money in your account and then demands you return it because it was mistakenly sent to you. However, when you do the online transfer, the scammer disputes the original payment with their bank and gets refunded twice the amount -from you and the bank.

H.  How to avoid CashApp Frauds  

To avoid becoming a victim to fraudsters in your CashApp account, be vigilant and protect yourself. Here are the most common ways to avoid the pitfalls of falling prey to fraudsters and scammers:

  1. Check the legitimacy of the recipient. Use your CashApp to send money only to those whom you personally know. A good practice is to call or send a text message to the friend, relative, or office colleague who is asking for money or who invites you to invest your money to verify this requests for money or credit before you send the requester your money.
  1. Cash on Delivery. Do not agree to pay for goods or services via CashApp unless you know or trust the seller. A good practice is to use Cash on Delivery (COD) wherein you pay for the goods or services upon receipt of these and after inspection of the authenticity of your purchase or service.
  1. Review Transactions. Review regularly all your transactions and check your transaction history for any unauthorized, suspicious, or fraudulent activity.
  1. Vigilance in Sharing of Data Information. Be careful with whom you share your personal or financial information. Always check the accuracy of the request. The best practice is to visit your bank or the agency that requests the information and authenticate this request before you share your personal or CashApp login information.
  1. Security Protocol. Use a strong password and enable the two-factor authentication for your CashApp account. Avoid using your birthdate, wedding anniversary, mobile number, or your street or apartment number address as your password. Change your password regularly, memorize it, and do not take a screenshot of it.
  1. Personal Data Protection. Never provide anyone with your personal information related to your CashApp account, e.g. sign-in code, PIN, full bank account information, or Social Security Number. Likewise, you must not allow anyone to use your CashApp account for their own use, e.g. money mule, online purchases of items and services, transfer of funds, and the like.
  1. Reporting Mode. Report any suspicious activity that appears to you as a scam or fraud to CashApp customer support immediately. Allow CashApp to look deeper into your report.
  1. Awareness of Red Flags. Be vigilant and identify new tricks and techniques scammers use and always be on the lookout for red flags. One best practice is this, if it is too good to be true, then do not engage.
  1. Vigilance in Regular Update Downloads. Update your CashApp app and device software in the privacy of your home. Avoid connecting to a public wifi to avoid an unexpected identity theft and loss of personal CashApp account information. Scammers frequent these public wifi places for potential victims to their schemes.

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