Cash App is one of the most preferred payment platforms in the United States. People have the flexibility to send, receive and withdraw cash app payments in a few simple steps. Cash App comes with two types of account, i.e. Business Account and Personal Account. There is no charge for using Cash App transfer payments to any cash app accounts. However, one may need to pay some charges with Cash App Business Account vs Personal Account for receiving payments. It works like a Payment Service Provider with a Cash App business account similar to PayPal does.
Before starting with Cash App, one must understand the difference between the Cash App business account vs personal account. Go through the pros and cons of both accounts carefully. Once you read and understand which account is good for you, open either a business account or a personal account.
Both business and personal accounts on Cash App help users to send and receive payments instantly. However, both accounts have some limitations that users must understand. The personal account enables users to send payment to friends, family and vice versa. If there are limited transactions then one should go for a personal account on Cash App.
However, if you are running a business and dealing in large payments, go with Cash App Business Account vs Personal Account. The business account on Cash App lets people receive unlimited cash app payment. However, users have to pay some transaction charges. The comparison of both accounts in terms of features and uses are discussed below.
Features Of Cash App Business Account And Personal Account
The difference between both business and personal have been discussed below:
- Weekly and Month Limits: There is fix sending or receiving limit with Cash App personal account. Users with a Cash App personal account are limited to sending $250 in a week and receive $1000 in a month. However, cash allows users to increase the existing limit after verification. Once verification is complete, sending limit will increase to $7500 per week, and there will be no receiving limit. It means the user can receive an unlimited amount.
On the other hand, users can send or receive unlimited payments with a Cash App business account. Users can handle a high number of daily transactions with a business account.
- Transaction Charges: Cash App business account enables users to receive unlimited cash app payments from the customers. However, one must pay the transaction charges to use the services of the business account. Cash App charge 2.7% per transaction held with a business account. Whereas, personal account holders do not need to pay any charge for receiving cash app payments on the Cash App Account.
- Create Payment Link: One of the useful features of the Cash App for Business Account is a Payment link. Retailers can create a Cash App payment link that will enable them to receive payments from the customer directly in the account. After creating a payment link, retailers can share the same with regular customers or place it on the website. Customers can make payments directly to the retailers using the payment link.
If we talk about the personal account, it does not have payment link options. There are limitations with a personal account, and it is one of them.
- Deposit Fee: No fee for both accounts in the case of standard bank deposits. However, instant deposits are chargeablefor both accounts. The instant deposit fee is $0.25 or 1.5%.
Cash App for Business vs Personal: Fees
The fee structure for both business and personal accounts for Cash App Business Account vs Personal Account is given in the table below:
|Business Account||Personal Account|
|Transaction Fees||2.75% of the transaction amount||No Fee|
|Instant Deposit Fee||The instant deposit fee is 1.5% or $0.25 (minimum).||The instant deposit fee is 1.5% or $0.25 (minimum).|
|1099-K Form||Gross payments that go beyond $600 (Starting Jan. 1, 2022)||Gross payments that go beyond $600 (Starting Jan. 1, 2022)|
|In-store/ Online payment fee||N/A||N/A|
How to switch Cash App from Business to Personal Account?
The users can choose either a personal or business account while creating a Cash App account. You can choose any one of the accounts as per your requirements. If you need Cash App for a few transactions, then select the personal account. Otherwise, select the business account for dealing in a large volume of payments.
However, it is the possibility that once you set up a business account but, later you want to switch the account from business to personal. Cash App allows users to switch accounts from business to personal or vice versa. If you are wondering how to switch a business account into a personal account, check the following instructions carefully:
- Run the Square Cash App and access your account.
- Tap the profile button on the homepage and select the personal tab.
- Now, click on ‘Change Account Type’ and confirm the changes.
- You need to put your fingers as biometric date or use a PIN to confirm.
- Your Cash App business account will turn into a personal.
Similarly, users can change from personal to business account on Cash App. If anyone finds difficulty while using the application, Cash App support is there to help you.
Cash app business account Pros
The business account on Cash App offers a variety of features that one can use for a better payment experience. Go through the following information to know the key benefits of using a Cash App business account:
- Secure Payments
It is a bitter truth that online frauds are growing day by day. Therefore, people are a little bit hesitant to share debit card details with online platforms. But, Cash App offers complete security to your transactions and hence, people prefer the Cash App for business transactions.
- Easy Setup
Setting up a business account with Cash App is quite simple. Users can complete the account set-up in a few simple clicks. You must follow all the guidelines prescribed by the Cash App.
- Reasonable Fees
Cash App is the only payment app, which offers a business account with minimum fees. No hidden fee is there for receiving online payments from the customers. Only a 2.75% fee per transaction is applicable with Cash App for the business account.
- Ease of Use
Using Cash App for a business account, is easy to set up. Everything is clear with Cash App. Users can create a $Cashtag for receiving payments. One can create a payment link for receiving online payments. This feature comes with a business account only. Users can check transaction history easily and can keep records of the transactions.
Cons of Cash app Business Account
Apart from having numerous benefits with the Cash App business account, there are some restrictions also in comparison to the personal account. Read the following information to learn the cons of a business account:
- Transaction Charges
Users have to pay a 2.75% fee on every transaction they receive in the business account. While with personal accounts, there is no fee. Additionally, there is a charge of 1.5% or $0.25 on the Cash App business account for instant deposit. But, the good thing is standard deposits are free.
- Lack of Customer Support Option
Receiving payments with a Cash App business account is quite tricky, and one may face issues. There are no options available, to contact Customer support on phone calls, or live chat, which is something, de-motivates users.
- Linking Bank Account is Essential
Users have to link a bank account with Cash App users to load the wallet. But, a Personal account holder does not need a bank account to add cash app payments to the cash app wallet. Users can visit any store to load payments into their cash app wallet, but, unfortunately, it lacks in the business account.
- Limited Business Features
Users with Cash App business account have limited business feature. It is limited to making payments, tracking payments and receiving payments only. You cannot expect a business management guide from the Cash App.
Can you have both Business and Personal Account together?
Yes, Cash App allow users to deal in multiple accounts. It does not matter whether you have more than one accounts, irrespective of personal or business. However, one thing you must consider is that there should be a new phone, and e-mail ID for every account you set up.
Cash App business and personal accounts are very useful. One needs to set up a Cash app account as per the requirement. If you are dealing in numerous transactions for your business, set up a business account. Otherwise, go for a personal account.
Using Cash App for business purposes will enable you to receive payments easily. You can enjoy all the payment services with the Business account at a minimum fee of 2.75% per transaction.
Users can also switch their accounts from business to personal or personal to business at any time.