Cash App allows users to create a business account to make peer-to-peer transactions quickly using a debit card, credit card, and other sources of money transfers. Cash App business accounts work in the same way as personal accounts. It offers commendable features like direct deposits, Cash App quick loan for your financial needs, and no hidden charges.
Although Cash App was not meant for use in businesses, it has developed over time to offer faster payout and other tools that make its use beneficial for people running small-scale businesses.
Basic Features of Cash App Peer-to-Peer Money Transfer App
- You can use debit cards, credit cards, and a few prepaid cards or fund transfers as payment methods.
- Cash app business accounts charge a 2.5% fee for transactions done through debit cards and app transfers.
- The charges are 2.75% for credit card transactions.
- You can choose to transfer money instantly but there are additional charges for this service.
- Cash App does not require you to enter into a contract. It works on a pay-as-you-go pricing method.
Once you have a Cash App business account, it allows you to accept payments from your customers through different debit, prepaid, and credit cards including Visa, Mastercard, American Express, and Discover.
Cash app Business also makes it easier for the buyers to find you as it provides a shareable URL, $Cashtag. These URLs are unique to each account so your customers should not have any trouble finding you.
What does Cash App offer To Business Accounts?
Features like direct deposits and the ability to borrow money from Cash App quickly are common to both, personal and business accounts. However, there are some benefits specific to using Cash App for business purposes. Let’s take a look at them one by one.
There Are No Fees!
The cash app does not charge you for setting up a business account. You can create an account and continue to receive payments free of cost. Nonetheless, the senders have to watch out for transaction charges as Cash App does have a fee for credit card and debit card payments as discussed above.
You Can Perform As Many Transactions As You Want
There is no limit on how much you can receive through the transactions. Cash App business account holders can obtain countless payments through the app without any cap on the amount. This is not possible with a personal account as it has a $1,000 limit for transactions in 30 days.
Consequently, Cash App would not flag you for high-transaction rates. Some apps tend to do this when your account is frequently receiving transfers. Luckily, there will be no disruptions of this sort with Cash App. There will also not be any payment delays or suspension of service.
The Money Will Get To You Instantly
You can request the customers for instant deposits when receiving a payment. This will ensure that the funds reach you immediately. In contrast, standard transfers can take up to 1 – 3 business days to complete.
There is a fee associated with Cash App instant transfers that are deducted the moment the transaction is initiated. This is typically 0.5% to 1.75% depending on the amount being sent.
Things To Watch Out For!
It is not recommended to use Cash App, or any other mobile money transfer app, as a payment processing platform if you are running a high-risk business. Although the applications have certain layers of security for safe use, these may not be enough to protect you against online scammers and fraudulent parties.
Moreover, little can be done to cancel a payment on Cash App or request the transaction to be reversed. Therefore, you have to be extremely careful about who you deal with through the app.
To keep things in check and balance, Cash app processors watch over user activities to identify high-risk behavior or high-risk transactions. For example, they will observe if your business has a high volume of chargebacks and eventually flag your account if this continues beyond a certain period.
Last but most importantly, as part of the Cash App business account features, it is compulsory to provide a receipt for transactions over $15.
If you are not okay with the minimal limitations that Cash app business imposes, we would suggest you check out competitive apps like Venmo, PayPal, or Zelle.