Cash App for business was started back in 2015 to help and provide services to business users for accepting online payments from users across. The experience of a business user remains the same as a normal user.
The benefit of using a Cash App business account is that all the major operators of business brands can accept the payments online from their customers. One added benefit is even non-cash App users could transfer the payments in exchange of goods and services.
In this blog, we have covered all the necessary information and topics like Cash App for business sign-up, Cash App for business fees involved, and pros and cons of having a business account, and short comparison between Cash app business and personal account.
So, lets understand how can you use a business account.
Table Of Contents
What is Cash app business?
Cash app business is a payment receiving application that help merchants in receiving payment from customers and cash app users.
The benefit of using a business account is that all the major operators of business brands can accept the payments online from their customers. One added benefit is even non-cash App users could transfer the payments in exchange of goods and services.
How to Sign up on Cash App for personal and business account?
Cash App offers a single sign-up facility for users to activate i.e. a personal or business account. A user will have to activate a personal account first, and then the user will have the option to change his personal account to a business account.
Kindly visit How to install Cash app on your device? if you would like to have more information on the same.
As we have mentioned above, there is a single sign-up process for Cash app account creation; the steps are given below:
Upon successful activation of cash app personal account, you can change the personal account to cash app business account by following the next topic steps.
How to change Cash app personal account to Cash app business account?
What does Cash App charges for a business account or for Cash app merchant account?
Cash app does not charge business holder for creating a merchant account and for using Cash app services like sending payment to a different account, balance check etc.; however, Cash App charges business account for receiving payments from user.
Cash app does charge 2.75% for receiving payments from customers and 1.5% for an instant fund deposit (same as a personal cash app account).
Kindly know the details on charges as mentioned below:
Payment receiving Charges: Cash app charges 2.75% for accepting payment on Cash app business account.
Instant Fund Deposit Charges: If the merchandiser needs to deposit the wallets amount to his linked bank account instantly; the merchandiser has to pay 1.5% for the service; however, there is also a standard option to deposit the amount into a linked bank account which is not chargeable but will take up to 48 hours for the transaction to get done.
Credit Card fund transfer: Cash App charges its personal and business users for credit card fund transfer; if users want to send money from a credit card to another Cash app account, they will have to pay 3% for the transaction.
Kindly click Cash app clearance fees if you would like to know more on Cash App clearance fees.
Now, we will understand the pros and cons of Cash app for business account.
What are the Pros and Cons of Cash app business account ?
Lets start with understating Cash App Business Pros at first.
User Friendly: The fabulous part of Cash app is its attractive and easy to use interface that does not require any technical expertise for transferring or accepting payments, checking balance, and much more.
Secure Payments: With Cash App for business, the business user can reassure their customers about the safe and secure transaction as Cash App has achieved PCI-DDS Level 1 certification from the Global forum.
Reasonable Fees: Cash App charges nominal fees for accepting payments as a business account user. Moreover, for instant deposit and credit card fund transfer, Cash app charges are the same for both account holders of Cash App.
Unique Cashtag: Unique Cashtag is like a premium hashtag for business users, which can be used with the $ sign instead of the # character. Business account users can accept payments by providing details to customers like email address, name, phone number and cashtag.
Non-Cash app user payment: All non-cash app users can still make a payment to a business account holder without installing or activating Cash App. Customer can use their credit or debit card to send payments through cash.me website or via the app.
Sharing Payment link: Cash app business users can easily send a payment request to their customers from email or WhatsApp; business users can also send their unique payment link through text message to their customers.
1099-K Form for Tax filling:Cash app helps its business account users in filling Tax; cash app generates 1099-K form for the business accounts which initiates 200 transactions within a month or receive $20,000.
Well, there are some drawbacks of using a Cash app for a business account; we have highlighted the same below:
Cash App for business Cons:
Active Bank account required: Cash App business account user does not get a cash app card which otherwise cash app personal users get by default. As with the cash app card, users can spend funds directly from cash app without any fees involved.
In the case of Cash app for a business account, the users have to deposit their amount to the linked bank account or pay a 3% fee to transfer the wallets amount to a credit card.
Instant Deposits Charge: This is one of the major drawbacks of Cash app where it charges 1.5% for an instant deposit of funds; however the standard deposit is free of cost.
Lack of Business Features: Cash app for business is just like a standalone payment gateway; it does not have other business feature such as an online appointment scheduler, re-purchase options, staff data management, inventory tracking option, and report generating feature.
Limited Customer Support: Cash app for business does not have any live phone support option; however, Cash app business account users can send their query to Cash App support via e-mail.
We have provided important information about Cash app for the business user; Now, lets understand the differences between using cash app personal and cash app business accounts.
In case if you are facing any issues with your Cash App account then we would like to recommend you to read Cash app Down.
Cash App business account VS personal account:
Differences between Cash app business VS personal account are mentioned below:
Cash Withdrawal: All Cash App personal account users receive cash card to withdraw money from ATM; however, Cash App does not issue cash card for business accounts which refrain business account user from direct transactions.
Tax-filling assistance: Cash App only assists those business account users which receive $20,000 in a month; Cash app generates a 1099-K form to file their taxes; although, Cash app personal account doesnt get this benefit.
Link Sharing option: Cash app business users can create their unique cash.me link and send it to their customer through WhatsApp or text; however, cash app personal user cannot share payment request link through a WhatsApp or text; they will have to use Cash app feature for requesting payment.
Blue Badge: Cash app enables a blue badge on business accounts only. The blue badge is a cash app assured account; it is a celebrity or brand account; the account features are the same as a business account.
Now all the differences between Cash app personal and Cash app business accounts would easily be cleared.
Wrapping up: The information mentioned in this blog is solely for understanding the differences and usage of business and personal accounts of Cash App. Moreover, one can easily switch to a Cash app business account by following the above-mentioned steps.
Things to know about Cash app Customer Support.
How to set up a Cash app for business?
Create an Id with the banking details, and then change the personal account to a business account.
What are the differences in terms between business and personal cash app accounts?
There are few differences in the terms between cash app for business users and Cash App personal account; these differences are payment receiving fees and issuing of 1099-K Form (for a business person who receives $20,000 in a month).
How much fees does Cash app charges for using a business account?
Cash app charges a similar percentage of amount from both account holders of Cash app; however, cash app also charges for accepting payment as a business account.
How can I switch a business account to a personal account on cash app?
If you want to switch your business account to a personal account, follow below-mentioned steps :