This analysis describes what Cash App's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
Cash App can liquidate a user's bitcoin holdings without further user action to cover a failed transfer, exposing users to a forced sale at whatever price bitcoin holds at that time.
The updated terms introduce an optional feature that automatically converts Virtual Currency to Fiat Currency to cover ACH debit payments. Under the revised language, you will not receive separate notice or confirmation before each automatic sale, and the price of Virtual Currency may change between the time an ACH debit is requested and when the sale is executed. If your Virtual Currency holdings are insufficient, Cash App may process the debit from your Cash App Balance instead, and if sufficient Fiat Currency is not available, the debit may be declined without retry. You can disable this feature at any time in Cash App, but the company may be unable to stop any ACH debit or related sale already pending or in process.
View change record →The updated terms establish a new feature allowing users to receive bitcoin payments over the Lightning Network with automatic conversion to USD. Under the revised terms, Cash App is authorized to receive inbound bitcoin on the user's behalf, convert it to USD at the applicable Conversion Rate, deduct applicable fees, and credit the resulting USD to the user's Cash App Balance. The terms state that the USD amount credited may vary based on market factors including the bitcoin price at the time of receipt or conversion, the feature may not be available in all jurisdictions or for all transfers, and once a Lightning USD Deposit is initiated or received, the user may be unable to cancel or reverse the automatic conversion. You can review the feature's availability and terms before enabling it, and should understand that market volatility may affect the final USD amount received.
View change record →The updated terms establish that Cash App may obtain and verify your identity information through third-party verification services, consistent with its Privacy Notice. Previously, the terms stated that your restricted account would be converted to a Prepaid or Debit Flex Account after identity verification; the revised language now states that conversion may occur and that verification does not guarantee access to all services. Cash App also reserves the right to require additional or updated information, documentation, or verification steps before granting access to certain account types or services. You can review Cash App's Privacy Notice to understand what identity information may be collected and how third-party verification services are used.
View change record →Users who experience a failed or reversed funding transfer permit Cash App to sell their bitcoin holdings to recover the owed amount if the Cash App Balance is insufficient.
How other platforms handle this
Any account without an active subscription may be deleted if it remains inactive...for a continuous period of at least six (6) months.
If your registration(s) with...the Services...is discontinued by Gumroad due to your violation of any portion of the Agreement...you agree that you shall not attempt to re-register with or access the Services...through use of a different member name
If you do not maintain such information, or Ro has reasonable grounds to suspect as much, Ro has the right to suspend or terminate your account and your use of the Services.
"If a funding transfer is reversed or otherwise fails to settle, you authorize Cash App to recover the amount of that failed transfer, including any associated fees, by debiting your Cash App Balance and, if necessary, by selling bitcoin...Excerpt from Cash App's Terms of Service
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Cash App can liquidate a user's bitcoin holdings without further user action to cover a failed transfer, exposing users to a forced sale at whatever price bitcoin holds at that time.
Users who experience a failed or reversed funding transfer permit Cash App to sell their bitcoin holdings to recover the owed amount if the Cash App Balance is insufficient.
ConductAtlas has identified this type of provision across 257 platforms. See the full comparison.
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