WooCommerce Pricing 2024: What Fees Should You Know About?
Learn everything you need to know about WooCommerce pricing 2024. From hosting and domains to essential plugins and transaction fees, discover the real cost.
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
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
There are some advantages to using a business account on Cash App, and these could prove helpful for smaller businesses looking for flexible options.
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:
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
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.
See the Best Banks for Small Businesses >>
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:
|
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:
|
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
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 |
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
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:
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
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 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 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.
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?
Sources:
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
Learn everything you need to know about WooCommerce pricing 2024. From hosting and domains to essential plugins and transaction fees, discover the real cost.
This guide covers BigCommerce fees you need to know about.
Is the Wise Business account free in the US? Find out here
Find all the Big Cartel fees you need to be aware of before you start selling on the platform!
Find all the Wise Business account limits you need to know in one place!
Read this clear guide on how to open a Wise Business account in the US and get started today!