What is Varo?
Varo Money was founded in 2015 as an effort to target younger customers that had grown frustrated with the complexities, fees, and lack of digital capabilities of traditional banks. At its launch, Varo Money was a financial tech company that developed the app, and it partnered with Bancorp to provide its banking services.
In 2020, Varo Money became the first financial tech company to secure its own US banking charter. (FYI, the now-defunct ING bank was chartered out of Europe and only received a partial banking license to operate in the US). Varo Money was able to end its partnership with Bancorp and take on full responsibility for its own baking operations. It then changed its name to simply Varo.
Difference Between Varo and Cash App
There are not many differences between Varo and Cash App:
- Both companies are alternatives to traditional banks.
- Both allow you to send and receive money to peers who are using the same company.
- Both accept direct and cash deposits.
- Both allow you to send and receive money to another bank or card.
- Both provide a debit card for you to directly spend funds.
- Both offer low/no fees.
- Both provide the ability to deposit paper checks.
- Both allow you to withdrawal cash at ATMs
- Both allow you to deposit cash by visiting supporting retailers
- Both are federally insured via the FDIC
- Neither allows you to send a paper check
- Neither offers joint accounts
Minor differences between Varo and Cash App include:
- Cash App has 32 million customers while Varo has only 1 million; that makes Cash App much more appealing to those looking to send/receive money to peers
- Varo allows you to open a checking and an interest-bearing savings account, whereas Cash App only provides one checking account; this makes Varo slightly more appealing to those looking for a more traditional bank experience.
- Cash App provides a website that you can use instead of (or in addition to) the mobile app. Varo only offers a mobile app.
- Varo advertises itself as a bank with the ability to make peer-to-peer transfers. Cash App advertises itself as a peer-to-peer transfer service with some banking extras.
Does Varo Bank Work with Cash App?
Varo and Cash App both provide debits cards and both provide routing/account numbers. Therefore, both can be linked into each other’s accounts via the card or bank link options.
Varo does not allow you to send/receive money to peers unless that peer also has a Varo account. With just 1 million users, chances are slim that your friend has a Varo account. It is much more likely they have a Cash App account.
So Varo customers who want to send/receive money to peers will probably also need to sign-up for a free Cash App account.
7 Steps to Set up a Cash App Account
The process for creating a Cash App account is straightforward — which is why so many folks like to use it.
1. Visit the Cash App website, or download their app for Android or iOS.
2. Enter your phone number or your email address, whichever you prefer to use as your login.
3. Varo will send you a text alert or email alert. Enter the code that appears on that message.
4. Click Skip when asked to enter your debit card information. You can link bank accounts after the setup is complete. This article provides more information below on linking your Varo account to Cash App.
5. Enter your full name.
6. Think of a Cashtag you would like to use. This is the identifier others will use when they want to send you money. Cashtags must be between 1 and 20 characters long. Cashtags must be unique, so it may take you a couple of tries to find a tag that is not already in use.
7. Enter your zip code.
That’s it. You should be able to login now to the site and mobile app.
How to Link Varo and Cash App – With a Debit Card
Now that you have both a Varo and Cash App account, we can link them together by adding your Varo debit card and/or bank numbers into Cash App.
Follow these steps to link your Varo and Cash App accounts together using a Varo Debit Card. This tutorial will assume you are using the Cash App mobile application.
Note: We recommend linking to Varo via debit card, and not by bank (using Varo routing and account numbers) because transfers in and out using a debit card are instant. Transferring via bank link can take up to 5 business days.
1. Open Cash App and login. You should now be looking at the bright green home screen.
2. In the bottom left corner, click the bank icon (looks like a house). This will bring you to the Banking screen.
3. Scroll to the bottom and click Linked Banks
4. Select Link Debit Card.
5. Now enter your Varo debit card information (number, CVV, expiration, etc)
That’s it. Your Varo account should now be linked to your Cash App account.
We suggest testing this connection by pulling $1 in from your Varo account to Cash App (hit the Add Cash button). Once successful, send the $1 back from Cash App into Varo (hit the Cash Out button).
Related: How to Send Money from Netspend to Cash App
How to Link Varo and Cash App – Without a Debit Card
Follow these steps to link your Varo and Cash App accounts together without using a Varo debit card. This tutorial will assume you are using the Cash App mobile application.
Note: We recommend linking to Varo via debit card and not by bank (using Varo routing and account numbers) because transfers in and out using a debit card are instant. Transferring via bank link can take up to 5 business days. But if you insist on using the bank link, then here are the instructions:
1. Open Cash App and log in. You should now be looking at the bright green home screen.
2. In the bottom left corner, click the bank icon (it looks like a house). This will bring you to the Banking screen.
3. Scroll to the bottom and click Linked Banks
4. Select Link Bank.
5. You will now be asked to enter your Varo routing number and Varo account number.
In case you are wondering: How do you find your Varo routing and account numbers?
A. Log in to your Varo Account via the Varo mobile app.
B. In the app, tap Move Money then select Direct Deposit.
C. The Routing Number and Spending Account Number will be listed
That’s it. Your Varo account should now be linked to your Cash App account.
We suggest testing this connection by pulling $1 in from your Varo account to Cash App (hit the Add Cash button). Once successful, send the $1 back from Cash App into Varo (hit the Cash Out button).
Related: 500 Cash App Name Ideas
How to Transfer Money from Varo to Cash App
Now that you have accounts with both companies, we can send money between your two accounts.
- Open the Cash App app
- Click the Bank icon in the very bottom left
- Hit Add Cash
- Enter how much money you would like to transfer.
- If you have multiple accounts linked, you may be asked which account you would like to transfer from. Note: We recommend linking to Varo via debit card and not by bank (using Varo routing and account numbers) because transfers in and out using a debit card are instant. Transferring via bank link can take up to 5 business days.
That’s it. The money should have moved from your Varo account to your Cash App account.
Related: Where to Load Cash App Card
How to Transfer Money from Cash App to Varo
Now that you have accounts with both companies, we can send money between your two accounts.
- Open the Cash App
- Click the Bank icon in the very bottom left
- Hit Cash Out
- Enter how much money you would like to transfer.
- If you have multiple accounts linked, you may be asked which account you would like to transfer from. Note: We recommend linking to Varo via debit card and not by bank (using Varo routing and account numbers) because transfers in and out using a debit card are instant. Transferring via bank link can take up to 5 business days.
That’s it. The money should have moved from your Cash App account to your Varo account.
How Long Does it Take to Transfer Money from Varo to Cash App?
The amount of time it takes for the money to move between your accounts depends on which transfer option you selected:
- If you transferred via your Varo debit card, the transfer should be instant
- If you transferred via your Varo debit routing/account number, the transfer can take up to 5 business days
There is no advantage to using the slower bank transfer option, so we recommend always using the instant debit card option.
Varo to Cash App Transfer Limit
The following assumes you are using the Cash App to move money from your Varo account to Cash App (via the Add Cash button in the Cash App), and from Cash App into Varo (via the Cash Out button in the Cash App).
Cash App allows you to send (via Cash Out) up to $7,500 per week. You can receive (via Add cash) an unlimited amount.
Because Cash App is going to send/receive money via your Varo debit card, Varo will consider the transfer to be like a purchase. The Varo spend limit is $2,500 per calendar day.
