Cash App allows users to decide the type of account they wish to open as a peer-to-peer payment app. Personal and business are primarily two categories; most people select the Personal account. However, you should open a business account if you are a small business owner and want to make and receive payments.
A business account offers greater flexibility, allowing accept unlimited payments of any size using your email, $Cashtag, or cash.app account. You can even receive unlimited money and won’t have any account limit. So if you have decided to change your Cash App account from personal to business, you need to continue reading this blog and learn a simple method.
What is the difference between Cash App personal and business?
Cash App allows users to switch between personal and business accounts. If you want to change your Cash App account, you should know the differences between these account types. Cash App personal and business accounts have different features and fees, so it’s important to understand what each one offers.
- One of the biggest differences between a Cash App personal and a business account is how much money can be transferred. A personal account has a lower monthly limit and a lower monthly balance, while a business account has a higher limit.
- In addition, it’s important to understand that Cash App charges a small percentage of fees from both types of accounts. While receiving money through a business account, Cash App will charge a 2.75% fee.
- A Cash App personal account is suitable for sending money to friends and family members. In contrast the Cash App business account gives business owners more options and allows them to create a payment link for customers.
- Cash App business account owners will have to offer refunds and returns according to law and in conformity with Cash App’s Payment Terms and Network Rules.
- With the new 2022 legislation, Cash App will report payments for goods and services via Form 1099-K when transactions go over $600 or more in a year. This form 1099 K is required only for Cash App business account users. The personal users with a non-business account are not falling under these rules.
How to change Cash App account type?
If you want to change your Cash App account type, you need to follow the below-mentioned steps:
- The first step is to open the Cash App.
- Tap on the “Profile” tab to select your account type on the Cash App home page.
- Now, the account type will change from business to personal.
- To switch between personal and business accounts, click the Change Account Type option to go to your profile.
- At last, enter the PIN or choose the touch ID.
How to change a Cash App account from business to personal?
There are plenty of advantages and disadvantages to each Cash App account type. While personal Cash App users do not pay a fee for receiving money from their friends and family, business account holders must pay 2.75% of each transaction. So if you have made up your mind to change your Cash App account from business to personal, follow these simple steps:
- First, open the Cash App on your phone.
- Then, tap the “Account” menu and select the “Change Account Type.”
- You’ll be asked to confirm the change.
- Before switching, you’ll want to sign out of your business-only account to avoid misunderstandings. This will save you the hassle of switching back later.
- You’ll also avoid the possibility of receiving payments in the wrong account.
How to change your Cash App account from personal to business?
Follow these steps to switch from a personal Cash App account to a business account:
- First, log in to the Cash App and tap the “Settings” button.
- Go to “Account Type” and select the account type you want to switch to.
- Once done, you must choose another bank account and email address.
- Once you have made the change, you must enter the PIN again.
- Your Cash App account will now show up as a business. Once you have confirmed the switch, click on “Continue” in the Cash App’s settings to make the change permanent.
Pros and Cons of a Cash App business account
In today’s world, receiving payment from clients is important for businesses. Square Cash App, a commercial payment system for businesses, makes receiving payments quick and easy. However, there are disadvantages to this account, too. Read on to find out more about its pros and cons.
- A Cash App business account is especially useful for small local businesses that accept instant payments. Small businesses with a mobile presence, such as home cleaners, fruit sellers, and personal teachers, may consider this option.
- With business account, users have a higher Cash App limit. Cash App for Business lets you accept unlimited payments from your customers.
- However, if your business account earns more than $20,000 per month, you will have to pay a one-time fee of $0.25 per transaction. The cash you receive is limited to $7,500 per week, and you will be required to submit a 1099-k form if you exceed this limit.
- Cash App does charge a small activation fee if you link your bank account. However, Cash App charges a one-time fee of 2.75 percent if you use your credit card. The fees will be lower if you use a bank account, so this account is a great option for small business owners.
Can I have both a Cash App for business & personal account?
Of course, you can have both a business and personal Cash App account. The only way for this is to use a different mobile number or email ID. You can use your Cash App for personal payments for your account, while your business account is reserved for business transactions. Follow these steps to create a second Cash App account:
- Open Square Cash App on your phone.
- Click on the “sign up” button.
- Here enter your mobile number, email address, bank details, etc. (Use different credentials for your 2nd Cash App account)
- Select either business or personal from the account type.
Luckily, the Cash App has made it easy for users to switch accounts. After reading this blog, we hope you clearly know what you can and cannot do with your Cash App account type. If you have trouble changing your Cash App account, you need to contact Cash App support.