On the surface, the idea of a digital payment system that doesn’t require a credit card or bank account sounds good.
However, the square app, now called Cash App, asks for the Social Security number (SSN) to use the service for many people.
It’s not as big of a deal now to provide your SSN when you’re opening a bank account or applying for credit. Some companies might even deny you an account if you don’t offer it.
But in this case, why do they need your SSN? This article will discuss the answer to this question in detail.
Why Is Cash App Asking For My SSN?
The answer is simple: To stay on the right side of the law when handling finances. Like most financial services these days, Cash App requires you to enter your social security number to comply with Know Your Customer (KYC) regulations.
In the US, it’s typical for financial institutions to request your SSN when setting up an account. This is to prevent people from giving false information, combat Identity theft, and make it easy to trace financial fraud and money laundering.
An Overview Of Cash App
The Cash App (previously known as Square Cash) is a peer-to-peer payments app from Square released in 2013.
With Cash App, you can send money right to any debit card in the US within seconds. It’s available in the US and UK only.
If you’re looking for a free and easy way to transfer money to a friend or family member, the Cash App is a great option.
You have probably used the Cash App at least once; it’s similar to Venmo.
However, Cash App has recently asked users for their Social Security Number. Not only that, but they also required users to verify their identity with a selfie. For many users, this is a huge privacy concern.
This move sparked outrage from users who felt the app was crossing a line asking for such personal information.
They had good reason to be concerned; identity theft is one of the fastest-growing crimes in the United States. Sixty million Americans have been subject to identity theft, according to 2018 by The Harris Poll. In 2020 alone, it accounted for 4.8 million cases.
Cash App is a free mobile app available on Android and iOS. You can link your bank account to deposit or withdraw funds instantly.
There’s no fee to link your bank account, and you’ll get our Cash Card once you’ve linked an eligible card.
Cash App is simple and easy to use, just like Venmo or PayPal, especially for people who don’t like to carry cash around or don’t want to deal with a check.
For people who are new to the concept of sending money via smartphone, the cash app can be daunting. But, once you get the hang of it, you’ll start noticing how incredibly convenient the cash app is, compared to other money transfer services.
How Does Cash App Work?
Cash App is impressive. You can transfer money to and withdraw money from anyone in seconds with just a few taps. You can even pay people back without the awkwardness of remembering and exchanging bank account numbers or writing checks.
But there are some things you need to know before using Cash App.
- For example, if you’re not using a US bank, you can’t receive payments through your Cash App account. This includes banks and credit unions from other countries with US branches and institutions outside the United States.
- Cash App works by linking your bank account and sending money to other cash app users using their phone number or email address. There’s no need to exchange bank information.
They offer four primary services;
1. Banking
Cash App allows you to transfer money from your bank account to anyone else’s bank account.
You can also send and receive money with a CashCard, a free and fully customized debit card that works like any other debit card; you can withdraw cash at an ATM and use it to make purchases at a retailer or mall.
The banking option is available for Cash App users to send, store or receive money to any bank account in the US.
2. Peer-To-Peer Money Transfer
You can easily send money to your friends or split a check at dinner. The best part is that it’s free to use. Customers may request and transfer funds to other Cash App users using their phone number, email address, or $Cash tag. The $Cash tag serves as the user’s unique username and may only be modified twice.
3. Cryptocurrency
Added in 2018, it allows you to buy & sell Bitcoin. It’s not available for minors who are using other Cash App services.
Buying and selling on this platform is instant, unlike other blockchain platforms. Currently, it only serves Bitcoin and has not added any other cryptocurrencies.
4. Investing
The investing option was added in 2020 for users to trade stocks on the app. This feature is for US residents only and is not available for minors who use other Cash App services. Users can buy or sell publicly traded shares for a minimum of $1.
How Do I Link My Bank Account To Cash App?
- Go to the Cash App website, or download the Cash App mobile app on your phone.
- Enter personal information on the “Get Started” screen. This includes your full name, address, phone number, and a valid email address.
- Tap on the profile icon and select linked banks
- Click on link bank and follow the prompts
- Confirm your bank account details, which Cash App will check against your bank account to ensure they match.
- Confirm your identity using a valid ID or driver’s license picture.
Why Does Cash App Need My SSN?
Like most financial services these days, Cash App requires you to enter your social security number to comply with Know Your Customer (KYC) regulations.
The only thing you have to do to sign up for an account is to enter your name, email address, and phone number. Then you get a pin code that you use to link your bank account.
People don’t like to give up their Social Security Number (SSN). Fortunately, there are a few reasons why the new Cash App asks for your SSN.
The app will ask for your Social Security number so it can verify your identity and make sure you’re over 18 years old. It also needs that information in case you want to buy Bitcoin.
In the US, it’s typical for financial institutions to request your SSN when setting up an account. This is to prevent people from giving false information.
Can You Use Cash App Without SSN?
If you’re wondering if you can use Cash App without your SSN, the answer is yes!
To create an account, you must verify your identity with a valid ID and a phone number. This means that you have to provide your SSN to receive payments.
However, if you plan on sending money back and forth with friends for less than $250 per week, you don’t have to provide your SSN.
What Does It Mean If I Don’t Give Them My SSN?
You don’t have to provide your Social Security Number (SSN) to set up or use the Cash App. However, they may ask you for it in certain situations, such as if you want to verify your identity or if they have questions about a transaction.
You can still use Cash App without providing your SSN or other identifying information. You will only need to provide your social security number if:
- To verify your identity
- You want to buy Bitcoin.
- You want to transfer or receive large amounts of money, more than $10000
If you don’t give them your SSN, Cash App will hold money in escrow for you. You can’t spend your money unless you verify your ID with an SSN.
- You can only send not more than $250 per week and receive a maximum of $1000 per month for peer-to-peer money transfers.
Verification will raise your sending limit per week to $7500 and unlimited receiving limits for life, hence why sharing your SSN with Cash App is essential.
Benefits Of Cash App
- Transferring money instantly at the tap of a button
- Receive a free and fully customized visa debit card
- Start receiving your paycheck up to two days early!
- Receive instant discounts with Cash boosts at your favorite stores
- Buy, sell and withdraw bitcoin instantly
- Buy and sell commission-free stocks
Conclusion
Cash App is asking for your SSN because it’s become a requirement by the law. This means that you must provide it when opening an account with them, but some good news is.
If you don’t want to hand over your social security number, you can still use their services without providing this information. However, these services will be limited until you provide them with the verification they need.
