Cash app offered business account option after two years of a personal account in the year 2015. Cash app for business account is an amazing initiate from Cash app’s end to avail money transactional services to business users. With the help of a business account, a business person can accept online payments from users; however, all functionalities and user interfaces are similar to a personal account.
Additionally, the prime advantage of using Cash app business account is that all the major operators of a business brand can accept payments online from their customers. Furthermore, even non-cash App users could transfer the payments in exchange for goods and services without installing and creating an account on Cash app.
So, in this blog, we have concluded similar information related to “Cash App for business” like sign-up, Cash App for business fees, and its pros and cons. Moreover, we have also provided a short comparison between Cash app business and personal account.
Before going ahead to mention the steps of creating a business account. We would like to clear that Cash App offers a single sign-up facility for users. However, the 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.
How to create an account on Cash App for personal and business uses?
There is a single account creation option on Cash app, which can be performed through the given below steps:-
- Install and open Cash app on your phone.
- Enter your Phone number or Email id.
- Now, enter email as shown below in the image.
- Tap on the “Next” option after entering an email.
- Now you will receive a verification code on your registered email/mobile number; enter; enter the code as shown in the image.
- Now, click on the “Next” bar as directed in the image.
- Select your Country by the drop-down menu.
- Here, enter your debit card number.
- Now, tap on the “Next” option.
- Enter Full name here.
- Click on the “Next” Option.
- Choose a $Cashtag, which is available on Cash app.
- Now, click on the “Next” option.
- Enter “Zip-code” in the given box.
- Now, tap on the “Next” button.
- Enter your address.
- Ultimately, tap on the “Next” option.
Once you finished with the creation of a personal account; you can change it to the business account type, steps are given in the next section.
Now we are familiar with the steps to create a Cash app account; now we will have to learn how to change a cash app personal account to a business account? So, those steps are given below.
Steps to change Cash app Personal account to Cash app business account:-
- Open your mobile and login to your Cash app account.
- Now, tap on the activity “Icon.”
- Click on the “Personal” option.
- Now, scroll down and click on the “Change account type” option, the option available in the bottom of Cash app’s home screen.
- Click on the “Change Account Type” option.
- Cash app prompts the user with”Cash App for Business” fees involved; below, you will find “Change This Account”, press the option.
- Finally, click on the “Confirm” option to change account.
What does Cash App charge for a business account or Cash app merchant account?
It is clear that Cash app does not charge for creating an account; however, the user creates an account for personal transactions or his business operation. Cash app does not charge for the creation of both accounts. Moreover, Cash app charges similar fees on Cash app usage from both account type; however, there are some differences between them, like Cash app does not Charge for accepting payment on a personal account; however, the business user has to pay 2.75% for accepting payment on Cash app.
Business account for payment receiving Charges: –Business users have to pay 2.75% of the transaction for payment receiving on Cash app.
Business account for Instant Fund Deposit Charges: – Cash app charges 1.5%for instant deposit fees; this is an instant method that helps business user to transfer their Cash app wallet money to the linked bank account; however, the user can opt for the Standard method, which is free of cost but takes up to 48 hours for the transaction to get done.
Business accounts for credit Card fund transfer: – If the business the user wants to load money from credit card initiate payment; Cash app charges 3% for the transaction.
Now, we have mentioned about Cash app for business account fees, in the next section, we have attempted to mention about Pros and Cons of Cash app business account.
Pros and Cons of Cash app business account:-
Let’s start with the Pros of Cash app business account:-
User Friendly: – The remarkable part of Cash application is its alluring and simple interface that doesn’t need any specialized for making a transaction, checking balance, and purchasing bitcoin, and stocks.
Secure Payments: – With Cash App for business, the business client can reassure their clients about the safe and secure money transfer as Cash App has accomplished PCI-DDS Level 1 certification from the Global gathering.
Equitable Fees: – Cash App charges reasonable fees for accepting payments as a business account holder. Moreover, there are similar fees for instant deposit and credit card fund transfer for both business and personal account holders.
Unique Cashtag: – $Cashtag is a feature of Cash app, it is an identification username that can be used to send money instead of using all banking detail of the payee. Cash app for business holders has the advantage of creating their unique Cashtag for accepting payment.
Accept Non-Cash app user payment: – Cash app personal users can only send and receive money between Cash app user; however, Cash app for the business user has an amazing option that the business account users can accept payment from non-cash app user too. Customer can use their credit or debit card to send payments through Cash.me website or via the app to business account without installing or creating account on Cash app.
Sharing Payment link: – Cash app business users can send a payment request to their customer from email or WhatsApp or instant offline text.
1099-K Form for Tax filling: – Cash app helps its business account clients in filling Tax; it creates 1099-K form for the business holders who transact 200 exchanges within a month or receive a sum of $20,000.
We have mentioned Cash app for business pros in the above paragraph, in the next section, we have mentioned drawbacks of using a Cash app for business account.
Cash App for business Cons: –
Active Bank account required: – Cash app business account always requires an active bank account to transfer the wallet amount into that linked bank account because Cash app does not offer Cash app card to the business account holder.
Instant Deposits Charge: – We think this is the major drawback of cash app that cash app charges instant deposit fees 1.5%; however, using the standard method for deposit is free of cost.
Paucity of Business Features: – Cash app for business is helpful for business transaction only; moreover, it does not have business features like re-purchase options, staff data management, online appointment scheduler, inventory tracking option, and report generating feature, e.t.c.
Limited Customer Support: – Cash app does not have a specific live phone support option for its business account users; however, Cash app business account users can send their query to Cash App support via registered email.
Differences between Cash App personal and Cash app business?
Let’s start understanding about Cash app for business functionalities, and how it is different from cash app personal account, it will help us to understand the advantages and disadvantage of Cash app for business account.
Payment Receiving Fees: – This is one of the prime differences from Cash app personal account that Cash app charges Cash app business users 2.75% transactional fees for accepting payment. However, we cannot count it as an advantage of the Cash app, but we can understand this fee may be used in maintaining a record for business taxation assistance.
Cash Withdrawal: – Cash app offer cash card facility to its personal account user that helps users to withdraw money from any ATM machine that accepts Visa card; however, this feature is limited for Cash app personal account holder only because Cash App does not issue cash card for business accounts.
Link Sharing option: – This option is worthy for every business user as Cash app business users can create their unique cash.me link to receive their payment. Additionally, they can send the payment link to customer through WhatsApp or text; however, cash app personal user cannot share payment request link using third party app; they have to do it within the Cash app interface.
Assessment filling assistance: – Cash app just helps those business account users who get $20,000 in a month, Cash application produces a 1099-K structure to record their charges; although, Cash application personal account user cannot get this advantage.
Blue Badge: – Cash application empowers blue identification on business accounts. The blue identification mark is a Cash app guaranteed account; it can be a brand account or celebrity account; however, there are no differences between services and fees of this account from regular Cash app accounts.
Wrapping up: – We hope this blog helped you in understating the advantages of using Cash app for business holders. Moreover, we have also provided information that can help our readers to evaluate the feature between Cash app personal and Cash app business account.
The user can set up Cash app for business transactions by simply creating a new account and then change into a business type.
Yes, there are a few differences in fees and taxation assistance between business and personal Cash app account.
Yes, Cash app charges 2.75% for payment received from business account users.
If you want to switch your personal account to a business account, the given steps will help you in reaching your goal.
Personal account to Business account on Cash app:-
1. Login to your account from any accessible device.
2. Click on the activity “Icon.”
3. Now, tap on the “Business” option.
4. Scroll down, and click on the “Change account type.”
5. Right here, cash app prompts the user with “Cash App for Business” option.
6. Click on the “Change this account” option.