How To Use Cash App For Business: Follow This Simple Guide

Cash App is a financial payment service app that is exclusively available for the US and UK residents. With Cash App, the users can maintain any one of the two accounts: one is personal and the second one is a business account. These accounts are switchable, it means a user is on a personal account, he can switch to a business account anytime. You can choose any one of these accounts as per your requirement. If you send and receive payments frequently, it’s better to switch to the business account on Cash App. Follow this simple guide to know how you can use Cash App for business. 

Before we discuss how to use Cash App for business, let’s know a little more about Cash personal and business accounts. 

What is a Cash App personal account?

Cash App personal accounts are suitable for those who send money to and from family and friends for shared experience. Like a business account, personal accounts also get linked to bank accounts. Also, there are no start-up costs and annual fee on a Cash App personal account.  Further, Cash app personal account holders do not pay any fee on standard transfers. However, users need to pay a minimum 1.5% or $0.25 for instant transfers. 

Secondly, personal account holders have a limit on the amount to be sent and received. Here the unverified users have a $250 weekly sending limit whereas the verified users have a $2,500 weekly limit. 

What is a Cash App business account or Cash for business account?

Here, Cash App business account or Cash for business account is the same. 

Cash App Business account is intended for those who send and receive frequently all day long through Cash App. Also, a business account increases your sending limit and there is no receiving limit. But Cash App levies $2 for every payment you send using a business account. Cash App business is designed to make business transactions easier and faster. 

With Cash App for business, you can accept unlimited payments of any size using your email, $Cashtag, or Cash.app account. Cash App for business accounts has no limit on transactions but there will be a 2.5% per transaction fee for accepting payments. Also, Cash for business customers pay a 2.75% fee for accepting credit cards. 

Steps on how to get a Cash App for a business account?

As aforesaid, Cash App allows you to switch between the personal and business accounts. Also, a Cash App personal account is your by-default account. Follow these steps to change your Cash App from personal to business:

1. Firstly, open the Cash App and tap the Profile account icon you can see in the upper right corner. 
2. Now, tap personal 
3. Then, tap change account type tab. 
4. Next, move ahead and tap Change this account. 
5. Finally, tap Confirm to switch the account to get a Cash App for business. 

How to use Cash App for business transactions

Like most other Apps, Cash App uses payment links and QR codes for making transactions. All Cash App users have a QR code in their app and they will be able to initiate transactions where one party scans the other’s QR code. With Cash App, good news is that you can either login into another Cash App or enter their name and address along with their credit or debit card information that will take you to a Cash.me. Cash App users can also generate a shareable payment link ($Cashtag) that you can send to others through text, email, message or embed in your website. 

How can you accept Cash App payments without a business account

Yes, it is a good thing with Cash App that you can accept payments without a Cash App business account. This is possible if you use Square as your payment processor. By using a compatible Square program, you enable Cash App as a payment method by default. 

These are the Square product that accept Cash App:

• Square Register
• Square terminal
• Square Online
• Square Stand,
• Square POS app for mobile devices

Why should you use a Cash App for Business?

Cash Cash App business account is more convenient for businesses that make infrequent and small transactions. It requires no hardware expenditures While taking Cash App and credit card transactions. The flat 2.75% transaction fee recalls the old days of Square to make very small transactions economically. Cash App is designed to handle low transaction volume, excellent for small businesses but not for high volume businesses. The businesses looking for setting up a Cash App for business, can do it on the app or website. Users can also have two or more Cash App accounts provided they use different phone numbers each time. 

Pros and Cons of Cash App business account

Pros

1. Unlimited transactions: Unlike a Cash App personal account, there is no limit for accepting payments with the Cash for business account. 
2. Instant deposit: Cash App for business account holders can request to make instant deposit instead of waiting for standard one to three business days. However, businesses need to pay a fee from 0.5% to 1.75% depending on the amount of transfer. 
3. Cash App for business accounts with sales exceeding $600 in a tax year will receive appropriate tax documentation. 

Cons

1. Transaction fees: Cash App business account is charged for making transactions. Here the Cash App users pay a fee of 2.75% per credit card transaction and 2.5% for transactions made by debit card or Cash App account. These transaction fees and charges are slightly higher than some competitors. 
2. Receipt requirements: Cash App asks businesses to provide a receipt for transactions over $15. Also, it insists businesses to give customers the option to sign or decline it for purchases over $25. 
3. It is not designed for high volume businesses and is more convenient to low volume businesses. 

As a concluding line, we will say and advise you that if you are running a business, it is better to use Cash App for business. Aslo, it is quite easy to switch your personal account to a business account on Cash App. Moreover, you should read all the terms and conditions for using a business account.