Cash App reached a settlement with regulators over how it handled customer money and disclosures

In 2023, Cash App's parent company Square (now Block, Inc.) agreed to pay $100 million to settle charges from the Consumer Financial Protection Bureau and the Federal Trade Commission. The settlement addressed complaints that Cash App failed to clearly explain fees, didn't protect customer funds properly, and didn't respond quickly enough when customers reported fraud or unauthorized transfers.

The settlement itself does not change how Cash App works day-to-day or automatically return money to past users. Instead, it requires Block to change its practices going forward and sets aside money for refunds to customers who lost money due to the violations the agencies found. Understanding what the settlement covers and how it might affect you depends on whether you were harmed during the period in question and whether you take steps to report it.

Key Takeaways

  • The settlement requires Cash App to be clearer about fees upfront and to respond to fraud claims within specific timeframes.
  • Block set aside money for refunds to customers who lost funds due to inadequate fraud protection or failure to respond to disputes, but you typically must report your loss to receive consideration.
  • The settlement does not automatically restore money to your account; you may need to file a claim or contact Cash App support with documentation of your loss.
  • Going forward, Cash App must provide better disclosures about how your money is held and what protections apply to your balance.

What the settlement required Cash App to change

The CFPB and FTC found that Cash App did not clearly tell users how their money was being held or what would happen if the company failed. Cash App also did not respond quickly to customers who reported fraud or unauthorized transactions. Under the settlement, Block must now provide clearer disclosures before you load money into Cash App, explain the difference between a Cash App balance and a bank account, and tell you what protections do and do not apply to your funds.

Cash App must also respond to fraud claims and disputes within specific timeframes — generally 10 business days for an initial response and 45 days for a resolution. Previously, the company did not have clear deadlines, which meant some customers waited weeks or months without knowing the status of their claim. The settlement also requires Block to maintain systems to detect and prevent fraud, and to investigate when customers report suspicious activity.

Who may be owed money from the settlement fund

Block set aside funds to compensate customers who suffered direct financial losses because Cash App failed to protect their money or respond to their fraud reports. This includes people who lost money to unauthorized transfers, scams, or Cash App's own errors, and whose claims were not resolved quickly or fairly. The settlement does not cover all disputes — for example, if you sent money to someone you knew and later regretted it, that is typically not covered.

To receive compensation, you generally need to have reported the loss to Cash App during the period covered by the settlement (roughly 2013 through 2023, depending on your state) and have documentation showing the loss occurred. Cash App or a claims administrator may contact you if your account is flagged as potentially affected, but you can also reach out to Cash App support with details of your loss and ask about the settlement fund.

How to report a loss or file a claim

If you lost money to fraud or an unauthorized transfer on Cash App, start by contacting Cash App support directly through the app. Go to the transaction in question, tap the three dots, select "Report a Problem," and describe what happened. Include as much detail as you can: the date, the amount, who received the money (if known), and whether you authorized the transaction. Keep screenshots or records of any communication with Cash App about the issue.

If Cash App's response was slow or you believe you were not fairly compensated, you can reference the settlement in your follow-up communication. Let them know you are asking for consideration under the Block settlement with the CFPB and FTC. If you do not receive a satisfactory response, you may also file a complaint with the CFPB through its website, which creates a record that can support a claim for settlement funds.

What protections apply to your Cash App balance now

Cash App balances are not the same as money in a traditional bank account. When you load money into Cash App, it is held by a bank partner (currently Sutton Bank or Lincoln Savings Bank, depending on your account type), but the funds are not automatically covered by FDIC insurance the way a checking account would be. The settlement requires Cash App to explain this clearly before you add money, so you understand what happens to your balance if the company or its bank partner fails.

Cash App does offer some fraud protections: if you report an unauthorized transaction, the company is required to investigate and typically refund you if fraud is confirmed. However, these protections are not as broad as those on a credit card or bank account. The settlement strengthens these protections by requiring faster response times and clearer communication about what is covered. If you send money to someone and they do not send goods or services in return, that is generally considered a personal dispute, not fraud, and Cash App may not refund it.

How the settlement affects new Cash App users

If you open a Cash App account after the settlement took effect, you will see clearer disclosures about fees, how your money is held, and what protections apply. Cash App must now show you this information before you load money or complete certain transactions, rather than burying it in terms of service. The company must also make it easier to contact support and report problems, and must respond within the timeframes set by the settlement.

For existing users, Cash App has updated its disclosures and support processes, though you may not see a dramatic change in the app's appearance. The main difference is that if you report fraud or a problem, Cash App now has a legal obligation to respond within a specific timeframe and to document its investigation. This does not mean every claim will be approved, but it does mean you have a clearer path to resolution and a way to escalate if you are not satisfied.

What the settlement does not cover

The settlement does not refund money you sent intentionally to someone who scammed you, unless you can show that Cash App failed to warn you about the risk or ignored your fraud report. If you sent money to a person or business and they did not deliver what they promised, that is typically a civil dispute between you and the recipient, not a matter Cash App is responsible for. You may be able to dispute the transaction through your bank if you funded Cash App with a debit or credit card, but Cash App itself may not refund it.

The settlement also does not cover losses from your own account security failures — for example, if someone guessed your password or you shared your login details. Cash App is required to offer security features like PIN protection and biometric login, and to respond if you report unauthorized access, but you are responsible for keeping your credentials private. If you believe your account was compromised, report it to Cash App immediately and change your password.

Frequently Asked Questions

Will Cash App automatically refund me if I was scammed in the past?

No. You need to report the loss to Cash App and provide details about what happened. If your case meets the settlement criteria — meaning Cash App failed to protect your funds or respond to your report — you may receive compensation from the settlement fund. Contact Cash App support with documentation of your loss to start the process.

How long does it take to get money from the settlement fund?

The timeline depends on how many claims are filed and how complex your case is. Simple cases may be resolved in weeks; more complicated ones can take several months. Cash App or the claims administrator will communicate with you about the status of your claim. You can also follow up with Cash App support if you have not heard back within a reasonable time.

Can I sue Cash App separately if I lost money?

The settlement does not prevent you from pursuing your own legal action, but most Cash App users agree to arbitration in the terms of service, which means disputes are handled through arbitration rather than court. You can still file a complaint with the CFPB or your state's attorney general, and you can pursue a chargeback through your bank if you funded Cash App with a card.

Does the settlement mean Cash App is safer now?

The settlement requires Cash App to improve its fraud detection, response times, and disclosures, which should make it safer and more transparent. However, no payment platform is risk-free. You can reduce your risk by using a strong password, enabling two-factor authentication, and being cautious about who you send money to.

What if I never received a response from Cash App about my fraud report?

Under the settlement, Cash App must now respond within 10 business days and resolve claims within 45 days. If you reported fraud before the settlement and never heard back, contact Cash App support again and reference the settlement. Provide your original report details and ask for an update on your case.