The Cash App is not only a money exchange medium for individuals. It also fulfills the banking needs of small and medium-sized firms. A Cash App business account or Cash for Business allows customers to pay via debit or credit card and money transfer. Thus, it facilitates small businesses to receive instant deposits from their buyers.
Business owners can sign up as business merchants and use the app to request and process transactions. But before leveraging this, you need to set up a Cash App business account. This article will give you all the information on how to set it up and start receiving payments.
What Is a Cash App Business Account
The Cash App business account facilitates small and medium-sized business owners to sell their offerings. It, in turn, leads to better management of these businesses. When you are a Cash App business account holder, you can connect with your buyers via your $Cashtag, the Cash App QR code, or the email/phone number linked with your account.
After that, you can quickly get payments from all your clients using Cash App. A 2.75% Cash App business account fee is automatically deducted from every payment that you get. This is the processing fee, and the Cash for Business account users don’t need to pay any sum for instant deposits. So they can get their funds immediately.
How to Make a Cash App Business Account
Start setting up a business account by first downloading the Cash App from your preferred app store. Then make a personal account. Only after that can you set up your business account.
- After setting up a personal account, tap the upper-right part.
- Touch the ‘Person’ icon.
- Next, you will find yourself on the Account Information screen.
- Tap ‘Edit Profile’ near your name.
- Now, head to the ‘Switch to a business account’ option.
- Tap it.
- A popup page for ‘Cash for Business’ will show up.
- Tap on the ‘Change this account’ button.
- It is green in color.
- You will get a confirmation message. Accept it.
- The next step is to link your account to your company’s bank account.
- On the home screen, tap ‘Linked Banks.’
- Follow all the instructions on your screen.
- Now, use your full name and social security number to verify the identity of your Cash App account.
- This process will confirm that you are not a fake person. It will also eliminate the limit on the money you can get weekly or monthly.
- Only after your account gets verified can you modify the Cash App business account limits.
POINT TO NOTE: You cannot go beyond $250 for daily transactions if your business account is not confirmed.
Some Additional Points to Know About Cash for Business
- Standards deposits from your customers usually take one to three business days to come into your business account.
- Besides the standard deposits, there is also an option for faster deposits. But you can only use it for a fee.
- The $Cashtag is a shareable URL that businesses can create for their customers to make payments.
- Every $Castag is unique. So, your customers are aware that they are paying the appropriate business every time they make a payment.
- The Cash App gives it is business account users relevant tax documents. So they know exactly how much to report in a year.
What Are the Pros of Cash for Business Account?
Holders of a Cash App business account do enjoy some benefits. These include the following.
1. No limit on transactions
Holders can accept payment with no Cash App business account limit for transactions. This is very different than the personal account. As already mentioned before, the personal account doesn’t let you go beyond the $ 1,000 limit for transactions in a monthly period.
Apart from that, this feature of unlimited transactions means that you can do away with high transaction rates. you don’t need to worry about any problems, such as payment delays or service suspensions.
2. Ease of requesting instant deposits
As holders of Cash for Business, you can request instant deposits if you want money immediately to the linked debit cards. Forget about the long wait of one to three business days.
To leverage this feature, you will need to pay a 0.5 to 1.75% fee. This is quite a nominal sum. Businesses can easily pay this amount.
3. Get suitable tax documentation
If your business makes a sale of over $600 in a year, you will also receive comprehensive tax documentation. Some people also have a Cash App for Business and a Square POS system.
If you also use it, the total payment will be assembled and reported on every 1099-K form.
How to Change My Cash App Account from Business to Personal
There are no direct means to revert your Cash for a Business account to a personal account. The only way that you can do so is by filing a ticket with Cash App support. However, it is not guaranteed that your account will always be reverted.
If the Cash App suspects anything, they have the choice to not revert your account.
The Cash App business account makes it effortless to send payments to vendors and order supplies. Everything gets processed from the app on your phone. If you want to learn more about the business account, connect with the Cash App experts online.
Frequently Asked Questions
Yes. You can certainly have two business accounts on the Cash App. However, both will need a distinct email and phone number.
Yes, there are a few downsides to Cash for Business. It is not possible to exceed the $7500 weekly spending limit even with a verified account. Cash App also charges a 2.75% fee on every transaction. Finally, the business account holder cannot use the Cash App card.
After you download and make an account on the Cash App, it will be a personal account. This is the default setting. To make it a business account, you need to convert it manually. When a Cash App account becomes a business account, it has a building icon next to the account name.
Cash for Business has the same interface as the personal account. The only difference is that with a fee of 2.75%, you can accept limitless transactions. However, you cannot exchange money outside the U.S., even with a business account.