Cash App Business Account vs Personal Account Fees Limits,+ Features

Cash App is a digital platform used for money transactions, borrow money and timely direct deposit but the usage of Cash App Business Account vs Personal Account varies when it comes to amount and type of transfer.

In a nutshell, Cash App Business Account is famous among the business-holders through which they transfer money to their clients. On the other hand Personal Account supports quick transfers to others via bank, PayPal, Chime, Zelle, Venmo, etc.

Cash App Business Account vs Personal Account

Cash app is a famous digital networking systems through which different type of transactions can be done. Moreover, it allows you to create either a Business Account or Personal Account depending on your account needs.

• You can do so simply by using Cash App name and completing sign up process.

Generally both Cash App Business Account and Cash App Personal Account work similarly and provide same type of benefits to its customer. However, there are a few differences in these two as well.

• Cash App Business Account is used in situations where a big amount of money is transferred through an organization, institute or a company. However, Cash App Personal Account is mostly used when a person wants to send money to any of his siblings, friend or any other family member.
• Through Cash App Business Account user receives a 1099 k form for taxes when he received approximately $ 20,000 in a month. On the other hand, in Cash App Personal Account this aspect is missing.
• Cash App Business Account is mostly used for transferring huge amount of money. This can be used for the construction of buildings, for establishing new business or for arranging a business tour etc. Cash App personal account is used for doing payments at a utility store, shopping malls etc.
• When a customer wants to use Cash App Business Account then they can create Cash Me payments and can easily share these details  through different platforms like WhatsApp, emails, SMS and share on their official website.

Charges

Cash App has set a certain amount of charges on accounts. For example, in case of Cash App Business Account, users have to pay 2.75% of tax.

But if you are using Cash App Personal Account then there is no need to pay tax or any charge. Keep in mind that there is no clearance fee for Cash App. Any account demanding this is probably trying to scam you on the app.

Deposit Fee

Whether you are using a Cash App Business Account or Cash App Personal Account, deposit fee is not charged.

This is because standard bank deposit is free of cost. But, if you want to use their instant service then their deposit fee is 1.5% which you have to pay regardless of the account type.

Transfer Limit

Transfer limits for both Personal Account and Business Account varies. Through your Cash App Personal Account, a small amount can be transferred or received. However, through your Cash App Business Account larger amount can be transfer to multiple account holders.

You might be interested in reading: Chime, Zelle, and Venmo Transfer Limit.

Option To Create Payment Links

One very interesting feature of Cash App Business Account is the creation of payment links. It has facilitated the transaction process for the business holders as well as for their customers. Through payment links users link their accounts directly with the customer’s account and perform transactions. 

• Secondly, if they work in a field, especially like marketing and online business management, they can also link their website.

Once they link their website with these payment links all process will be done so smoothly and you won’t have to worry about Cash App payment pending issues. Furthermore, these payment links allow the non Cash App users to avail its benefits without having an account.

Why Should You Choose Cash App Business Account?

You are free to create any type of account according to your needs and even shuffle them in the future. However, Cash App Business Account is much better than Cash App Personal Account due to its tremendous features.

Through business account, you can transfer unlimited amount to your clients or customers. As an unverified account holder, you can send $250 and as a verified member you can send up to $2500. Even the normal transfer limit of Cash App Business Account is $7500 per week while transfer limit for Cash App Personal Account is $2500 per month.

Pros

• After switching to your business account, usage of Cash App will be quite easy for both the parties. Moreover, you can go through your transaction history whenever you want and even can keep a record of your account balance.
• Clients will be able to send you money even if they do not have a Cash App account themselves.
• An amazing feature of Cash App business account is that they do not charge any transaction fee. Even if they have set certain amount of fee for some sort of transactions, that too is less as compared to others.
• All of your payments through Cash App Business Account are secure and encrypted. Especially your account details and personal data which mostly as a user you do not want to share with the customers or third party.
• Not only this but even your card information is safe and they keep it just within their system and not shared with the customers.
• Cash App Business Account creation is quite simple which everyone can create on his own within few minutes. However if you face any difficulty during account creation then their team and available guidelines will be helpful for solving that issue.

Although there are so many benefits of Cash App Business Account there are few drawbacks as well.

Cons

• If you are using cash app business account then you have to pay to 2.75% tax or fee on each transaction which is much more than the personal account.
• In case of Cash App Business Account, support team is not available through phone call system due to which more a minor issue becomes more serious.
• Cash App Business Account need a linkage with your bank account. If you don’t have it you can’t use it services properly.
• One important requirement of money transfer is tracking of that money. But in case of cash app business account this feature is missing.

You might be interested in reading: Can You Use Cash App Without Bank Account?

The Bottom Line

There is no issue whether you create your Personal Cash App Account or Business Cash App Account because both can be used for money transfers.

But Cash App Business Account is much better than Personal Account due to its transfer limit as well as other generous benefits. So simply create any of the account and switch it to the other one whenever you want.

Frequently Asked Questions

Is it allowed to have both Cash App business vs personal account or not?

Any Cash App user can have both of the accounts for money transaction. But, for every account always provide a new mobile number because multiple accounts for single Cash App user are not possible with the same phone number or email ID.

Can a user switch his Personal Cash App Account with Cash App Business Account?

If a customer wants to switch his account from one type to another then it is possible but after going through a formal protocol only. You can choose to contact Cash App customer support for guidance. The shift can also be performed via App by clicking on personal tab and then choosing Change Account Type.

Do I need to pay a fee for Cash App business account?

 The tax charges or fee on money transfer through Cash App Business Account is set because typically huge amount is transferred. But, Personal Account is used for small scale money transfers only and that is why it is free.