How to set up a business cash app account? While Cash App is mostly known for personal transactions, you can use Cash App for business transactions by setting up a business account with a few simple clicks.
Square is one of the biggest names in small business credit card processing, but there’s one part of Square’s ecosystem that tends to fly below the radar when it comes to business transactions. We’re talking about Cash App, the popular peer-to-peer transaction application and lite Bitcoin trading platform.
In this article, we’ll be looking at how to set up a business cash app account, how to use Cash App for business vs personal, and the strengths and limitations of the application.
Before we proceed on how to set up a business cash app account, let me answer some frequently asked questions on the Cash app.
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Can You Use Cash App For Business?
While Cash App is mostly known for personal transactions, you can use Cash App for business transactions.
Using Cash App for business transactions requires you to create a business account. You’ll then be able to accept transactions through the application. Note that it’s possible to accept Cash App as a payment method without a Cash App business profile if you are a Square customer using compatible hardware or software.
Note that, like Square’s other services, Cash App has a list of prohibited businesses.
What Is A Cash App Business Account?
Simply put, a Cash App business account allows merchants to make sales through Cash App while remaining within the good graces of the terms of service and law. A Cash App business account has the following characteristics:
- Unique payment links and QR codes can be used to initiate a transaction.
- Allows you to accept peer-to-peer (P2P) Cash App payments
- No limits on the amount of money you can receive
- Allows you to accept payments through Visa, Mastercard, American Express, and Discover networks
Cash App For Business VS Personal Accounts
For the most part, Cash App for Business and Cash App personal accounts work similarly. There are a couple of key differences, however:
Receiving money with a Cash App business account has a transaction fee. A personal account does not.
There’s no limit to the amount of money you can receive with a verified business account.
You can be paid by credit card, not from another Cash App account
You can have both a Cash App business account and a personal account at the same time, but each account requires a different phone number.
Cash App For Business Fees
If you’re accustomed to peer-to-peer transaction apps being free, it may be a little disappointing to hear that Cash App for business has transaction fees in addition to the optional fees personal accounts pay for expedited bank deposits.
Here are the fees for Cash App business accounts:
- 2.75% per transaction
- 1.25% fee (minimum $0.25) on instant deposits
But wait, aren’t transactions free with a personal account?
Cash App for business is less about getting unique features than about being in compliance with your terms of service. More importantly, as of 2022, services like Cash App are required to report commercial transactions totaling more than $600 in commercial payments annually to the IRS. You should expect greater scrutiny of transactions going forward.
Cash App Business Account Limits
Given its origins in P2P transactions, Cash App wasn’t envisioned as a high-volume transaction platform. To use Cash App for more than just an occasional small sale, you’ll need to get a verified account. The limits work like this:
$7,500 sending limit a week and $17,5000 per month with a verified account.
There is no limit on the amount you can receive.
$25,000 per week limit on cashouts
Unverified accounts can do $250 worth of transactions a day and $1,000 within a 30-day period
You can access limits within the app by tapping on the account setting icons in the upper right corner, then tapping on Limits.
How To Use the Cash App Visa Card
The Cash App Cash Card is a Visa debit card that allows you to use your Cash App balance to make purchases at retailers that accept Visa and to get your money out of an ATM.
Instant payments are a prerequisite for a hassle-free life, as you can get on top of a money situation whenever it arises. If you’re not yet on board with Cash App, there is so much you’re missing out on.
FAQ on how to set up a business cash app account
Is Cash App good for small businesses?
Cash App can be excellent for very small businesses with low transaction volume. It won’t be sufficient for higher-volume businesses, however.
How do I know if my Cash App is business or personal?
By default, your Cash App account will be personal. You have to convert it manually if you want it to be a business account. Business accounts currently have a little building icon next to the account name.
Can you have two Cash App accounts?
You can have more than one Cash App account, but they need to be associated with different phone numbers.
What are the limits on a Cash App business account?
Verified Cash App business accounts have the following limitations:
$7,500 sending limit a week and $17,5000 per month with a verified account.
$25,000 per week limit on cashouts
Unverified accounts can do $250 worth of transactions a day and $1,000 within a 30-day period
Does Cash App charge a fee for business accounts?
Receiving money with a Cash App business account comes with a 2.75% fee. The only other fee is 1.5% for instant deposits.