How to Use Cash App For Small Business? A Complete Guide

So you have just started a new business and are exploring the payment options and thinking if Cash App is suitable for small businesses.

Well to tell you the truth Cash App is designed so simple and with one goal in mind, which is to send and receive money. Cash App has made it really easy to transfer funds between peers.

Now, what is there for small businesses in it? Cash App has a separate business account for small business owners. You can make quick payments, it makes fast billing possible safe, and simple.

I know a selection of a payment gateway for a small business is difficult because you don’t go and keep changing the apps again and again. So it is better to learn everything that is offered by Cash App for small businesses.

I am going to break down each and every aspect of the Cash App Business Account for you so that you can decide if Cash App is suitable for your small but awesome business.

Let’s dive in…

Why Should You Use Cash App For Your Small Business?

Cash App is easy to download and simple to set up. It doesn’t require many details to set up your Cash App account. Your account will be up and running instantly. You can then use it in multiple ways to benefit your small business.

1. If you are using online platforms like eBay or Etsy for your new business and making sales on these platforms then Cash App is an easy way to receive money from your customer.
2. You can also use it for the purpose of receiving bills from your customers.
3. Quick simple payments and accurate numbers clearly displayed on this app make it easy for you to manage the inventory.
4. Cash App makes invoicing much easier. If you are a new business that does customer service you can use Cash App to easily send invoices just by inputting the customers’ names and tags.

Cash App is a great option for new businesses because it makes funds transfers between companies, employees, and customers much easier and more efficient.

Basics- Cash App for Small business

If you are familiar with Square, its main product is POS (point-of-sale) which can be used by businesses to manage employees and track inventory. You can also use Square’s POS to generate reports.

But Cash App has a different purpose it is basically a simple P2P payment app. With no advanced tools, it is there to make quicker payments at less cost.

There are no complicated setting up procedures required for Cash App for your small business. You will simply get the $Cashtag or Cash App user name for your small business setup that you can use to receive payments.

Importance of Cash App User Name for Small Business

When you set up your new Cash App account for your business you will have to choose a unique $Cashtag for your business. This username will then represent your business. Customers can simply pay you money by entering this $Cashtag in their Cash App.

Cash App also provides you with a URL for your new business account. This URL can be used to receive payments too. Customers pay by clicking this link on your website.

These $Cashtags for small businesses are a great way of marketing too. You can choose a unique brand identity and then print them on your Visiting Cards to promote your new business through Cash App $Cashtags.

Customers who do not use Cash App can pay by visiting the URL that will look something like “cash.me/yourCashtag“.

How Much Does the Cash App Business Account Cost?

Setting up a Cash App account for your small business is completely free. All you need is an email or a phone number. However, there are certain transaction fees that you will have to keep in mind.

Cash App makes all deposits in Cash App for business accounts free. However, you will be subjected to a 2.75% fee when you receive money in Cash App for business accounts.

Regular deposits from Cash App for business accounts are free too. If you chose the option of instant transfer you will have to pay a 1.5% fee to transfer money to the linked bank account.

Signing up for a Cash App account is completely free. You can apply for a free Cash App Card too if you don’t want to get a customized Cash Card. However, for the customized Cash Card you will have to pay an extra $5 fee once.

Can You Use Cash App for Your Small Business?

Now that you most of the details about Cash App for business accounts. I think you are more informed to make a decision.

Yes, Cash App can be used for your small business. You can use it to receive payments for the products that you sell or the services that you provide. Receiving payments through Cash App is much much easier for your small business.

Even if the customers don’t have Cash App can pay you. They can simply pay you by using their Credit/Debit Card by using your $cashtag link.

How to Set Up Cash App Business Account?

There are two ways that you can use to set up your new cash app account.

1. Through Cash App from your phone
2. By visiting the Cash App website

If you are going to set up your Cash App account you will be needing the following:

1. Email or phone number
2. You Bank account details
3. Your SSN
4. Driver’s license
5. You will have to provide a selfie

When you will begin the sign-up process Cash App will send you a confirmation email or a text message to your phone number. Once confirmed you will be able to log in to your Cash App account. You will then be required to enter your bank account details and your personal information.

By default, your Cash App account will be personal and you will have to change it to a business account so that you can associate with your small business.

How to switch from personal to business account on Cash App?

Follow these simple steps to switch from a personal to a Cash App business account.

1. Launch Cash App
2. Login to your Cash App account using your email or phone
3. Tap on the profile icon on the home screen.
4. Scroll down to the “Personal” tab and tap it.
5. Tap on “Change Account Type”
6. Enter PIN to confirm

Once confirmed your account will be changed to a Cash App business account. You can also switch back to your personal account whenever you like by contacting the Customer Support Center.

Is Cash App Business Account Suitable For Your Small Business?

Let’s make it simple here guys. Cash App Business account is only suitable for small businesses. If you have a big business and you are dealing with huge transactions Cash App Business account is not for you.

For a small business though, a Cash App business account will have some extra features that a personal account lack. You can use it to accept payments for your products and services.

Goods and Bads of Cash App for business Account.

Everything comes with some good and some bad sides. Cash App also has some benefits as well as some drawbacks. Let’s have a look

The Goods:

1. Cash App is easy to set up.
2. Cash App works best for small businesses
3. You can accept mobile and Credit Card payments
4. No extra equipment is required like a credit card swiper.
5. Customers only need your $Cashtag to pay.
6. You are easily searchable by a phone number or email
7. Cash.me link allows non-cash app users to make payments.
8. Lower fee than other mobile platforms like PayPal

The Bads:

1. You can not receive more than $1000 if your Cash App account is not verified. With verification, you can increase the limit to $7500 per week. You can receive an unlimited amount once verified, Check out how to verify your account.
2. You are subjected to a 1.5% fee for instant transfers.
3. Slow customer support as you can only reach them through email or social media.
4. You can receive overseas payments as Cash App only operates in the U.S and U.K.
5. The company can block your account if deemed necessary.
6. No tools for detailed money management like creating reports and employment management.

Verdict

I have tried to cover each and every aspect of the Cash App business account for small business owners. I hope that now you will make a more informed decision about choosing a payment platform for your small business.

The cash app is good when it comes to small simple transactions. Cash App allows your customers to pay you simply by your phone number or $Cashtag. You can also receive payments through credit cards.

Let me know in the comments section which payment platform you use for your small business and how is it better than the Cash App business account.

Share your knowledge with us.

Cheers…