Cash App for Business: Features | Prices | Alternatives

Cash App has seen increasing popularity as a tool for peer-to-peer payments, but it also has a business option for small business owners. A Cash App business account could be helpful in certain instances, so it is worth looking into. For example, you could use Cash App to make it easy for customers to pay you, send money, and receive money into business accounts.

In this article, we’ll explore how to get a business account with Cash App, the pros and cons, and possible business account alternatives, such as the Wise business account.

Open a free business
account with Wise 🚀

👆 US account opening is free while other markets may vary
👉 Save on earnings with local account details (one-time fee)
👉 Send 19x cheaper payments than with PayPal

What is Cash App for Business?

While the Cash App is typically used for quick and straightforward peer-to-peer transactions, Cash App for Business aims to bring that same functionality to business owners.

Small business owners and entrepreneurs can use a business Cash App account to send and receive money. Cash for Business accounts can accept money through sharing a Cash App QR code or $Cashtag. Businesses can also have customers send money using their business email or phone number to make receiving money from a business account or a personal account easy on Cash App.¹

Pros

There are some advantages to using a business account on Cash App, and these could prove helpful for smaller businesses looking for flexible options.

• Unique payment methods: Cash App for business offers business owners multiple ways for accepting money from customers; Cash App business account sending money methods include unique payment links and QR codes for transactions.
• No limits on incoming payments: Cash App business account limits do not apply to business accounts, so businesses need to worry about limits on the amount of money coming in.
• Most major payment networks accepted: The business Cash App account accepts Visa, Mastercard, American Express, and Discover to make it easier for customers to make payments.
• No contract: Business owners can use the Cash App flexibly without worrying about getting locked into contracts
• Instant deposit: Fast deposit options are available for receiving money into a Cash App business account.
• Tax documentation: Cash App for Business offers additional tools to help businesses manage their money, including tax documentation options.

Cons

While Cash App for Business has some clear benefits for small business owners², it might only be suitable for some. Cons of using Cash For Business include:

• Receipt requirements: Cash for Business has strict requirements when it comes to transaction receipts. Business owners must provide receipts for transactions over $15. For transactions over $25, Cash App business accounts must have a signature option enabled.
• High-risk businesses are barred: Certain types of businesses are not allowed to open Cash for Business accounts. High-risk businesses include telemarketing sales, firearm and ammunition products, weapons, age-restricted products (e.g., tobacco), hate or harmful products, debt collection agencies, etc.
• No overseas payments: Cash App business accounts cannot support payments from countries outside the UK, which can be a significant limitation for many businesses.
• Limited customer support: Cash App for business accounts does not have dedicated customer support channels, which may be challenging when issues with payments or accounts occur.

Open a free business
account with Wise 🚀

👆 US account opening is free while other markets may vary
👉 Save on earnings with local account details (one-time fee)
👉 Send 19x cheaper payments than with PayPal

How to Make a Cash App Business Account

You can sign up for a personal Cash App account and switch to a Business account³. If you’re unsure how to turn your cash app into a business account once you have created the account, don’t worry; it’s easy.

The process for making a Cash App business account is easy, and we’ll go through the cash app business account sign up process step-by-step.

1. Sign up for a Cash App account by downloading the Cash App on your phone
2. After creating your personal account, tap the profile icon located at the top-right
3. Tap Personal or Edit Profile. At the bottom of the page, you will see an option to switch to a Business Account.
4. Fill out the prompts to finish the switching process.

See the Best Banks for Small Businesses >>

Cash App Business Account Fees, Limits, and Requirements

Once you get a better idea of what is a cash app business account, the next step is to understand whether the account is the right choice for you. Some key points to know about a Cash App for business account to know are:

Cash for Business fees and reporting	Description
Startup fee	There is no Cash App business account fee for starting an account
Fees for money received⁴	Cash App charges a percentage for money received: 2.75% per transaction 1.25% fee (minimum $0.25) on instant deposits
Clearance fee	There is no Cash App business account clearance fee.
Tax reporting⁵	Businesses are required to report over $600 in commercial payments annually to the IRS: For businesses earning over $20,000, a 1099-K form may be required, but this can differ based on where the business is located.

Open a free business
account with Wise 🚀

👆 US account opening is free while other markets may vary
👉 Save on earnings with local account details (one-time fee)
👉 Send 19x cheaper payments than with PayPal

Cash App Business Account Limits

Understanding Cash App business account limits for how much money can be kept in the account can help in deciding whether this kind of business account is right for your business.

Cash for Business limits⁶	Description
Verified account daily limit	$7,500 (send money)
Verified account weekly limit	$17,500 (send money)
Verified account monthly limit	$25,000 (send money)
Incoming payment limit	No limit on incoming payments
Unverified account limit	Daily limit of $250 for transactions and $1,000 within 30 days

Cash App Business Account vs Personal Account

There are a few key differences between a Cash App business account and a personal account:

Firstly, fees. If you’re wondering, does Cash App charge a fee for a business account, the quick answer is they do not. However, incoming money will be subject to fees in a business account. However, there are no charges for receiving money if using a personal account.

The Cash App business account limits are significantly loosened once a business account is verified, as there are no limits to the amount received in the account. Unverified accounts, including personal accounts, are limited to sending $250 worth of transactions weekly and receiving $1,000 in a 30-day period⁷.

Using the profile icon in the top-right corner of the Cash App enables you to switch from a personal account to a business account. Using the same process, you can switch back from your Cash App business account to a personal account.

Open a free business
account with Wise 🚀

👆 US account opening is free while other markets may vary
👉 Save on earnings with local account details (one-time fee)
👉 Send 19x cheaper payments than with PayPal

Cash App Business Alternatives

While the Cash App is a strong option for small businesses, many alternatives may offer a competitive edge over the Cash App Business account. Some top alternatives to Cash App Business include:

Wise

The Wise Business Account offers a lot of advantages for smaller businesses, especially when it comes to sending and receiving international payments. Wise charges nominal fees for certain services dependent on business usage rather than monthly fees. Charges are for certain transactions, such as withdrawals over a certain amount and currency conversions. In addition, Wise helps businesses to access banking services, including integrations with leading business tools such as QuickBooks for an easy business finance solution.

Open a free business
account with Wise 🚀

👆 US account opening is free while other markets may vary

Venmo

Similar to Cash App, Venmo started as a peer-to-peer payment that has since evolved to offer business payments. Venmo for Business enables businesses to set up their own profiles and accept payments once the account is verified. With Venmo for Business, businesses can accept payments and even tips. Additionally, Venmo for Business also provides QR code links that customers can use to make payments to the business. However, there is a small transaction fee that sellers must pay with each sale, and transactions can only be completed in the US.

Zelle

Zelle is another alternative for business banking that has suitable features for business owners. Zelle for Business goes beyond peer-to-peer payments and enables businesses to accept digital payments quickly. Transactions on Zelle are completed within minutes, and customers can make payments using the business’ mobile number or email address. However, Zelle is limited to US transactions only.

PayPal

PayPal is a business banking alternative if you’re seeking to make domestic and international payments. PayPal for Small Business allows businesses to accept digital payments, flexible options such as Buy Now, Pay Later, and secure transaction opens. However, PayPal charges business transaction fees on invoices, checkout, and other options. PayPal may not always be the most cost-effective option for international payments depending on market rates being offered, but the choice is available for business owners.

Make international business easy with Wise.

With Wise, international business is simple, cost-effective, and easy. While Cash App and other banking options may be limited to the US, Wise is borderless. Move money quickly where it’s needed most based on what your business needs without worry.

With Wise business accounts, businesses can pay international employees quickly and easily with competitive mid-market rates.

Wise offers additional tools to simplify paying freelancers and suppliers, including batch payments, cash management, and powerful integrations to help your business grow and succeed.

Open a free business
account with Wise 🚀

👆 US account opening is free while other markets may vary

Learn more:

Cash App for Business vs Personal Account: Which is better for you?

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Sources:

1. Cash App- What is Cash for Business?
2. Cash App- Cash For Business Payment Terms
3. Cash App - Switch to Cash for Business
4. Cash App - Cash out Speed
5. IRS - Reminder: Service providers, others may receive 1099-Ks for sales over $600 in early 2023
6. Financebuzz - Cash App Sending Limits: How Much Money Can You Send?
7. Cash App - Account Settings