Cash app, one of the popular peer-to-peer companies, allows transactions of money through it. Although it is a mobile application version, you are free to choose its PC version. Square Inc is its parent company that keeps on checking and updating new legislations and features in the app to help users. If you are already a user of this app, you have the reasons to use it. If not, try giving it a chance and see how it works in your financial life.
While there’s a lot to discuss the cash app, we will brief down to business and personal accounts.
Keep reading the blog as we will discuss some hot-shot tips to switch accounts and increase your transfer limit.
How to change Cash App from business to personal?
If you have a business account on a cash app, you can start using a personal account by two methods. You can either delete the existing one which is your business account or create a new account on a cash app. It will be personal by default. The other option is to switch your account from business to personal without deleting or recreating one.
Follow these steps to get rid of your existing business account.
- Open Cash App on your mobile phone.
- Move to the Banking Tab and then Cash Out.
- Click on your Profile.
- Click consecutively Support < Something Else < Account Settings < Close Cash App account.
- Finally, you will have to tap on the Confirm option to allow deletion.
Now you can create a personal account starting from scratch. You can also do this if you have not ever used the Cash App (not even in the form of a business account).
Here is how you can do it.
- Install the cash app or go to its official website.
- Enter your correct mobile number, email id, and other information to link your account. You will receive an OTP on your mobile phone via text or on your mail-id. Use it to confirm linking.
- When you have finally set up your account, log in to it using credentials.
- Put your correct name (both first and last name).
- Make sure to link a debit card or credit card.
- You will see that your cash app account will be a personal type and it is set by default.
What happens when you change your cash app account to business?
When you change your cash app account to a business account, you can receive unlimited money because the threshold limit increases. Additionally, you have to pay a 2.75% fee for every received transaction.
How to Change Account Types on Cash App?
Since the cash app always sets your account as personal by default we assume that you want to change it to business type. For this, navigate to App Settings < Personal Menu < choose the business account. Your account type is successfully changed now and you can start enjoying the benefits. In case, you want to go back to the personal account type you need to follow the same steps.
How to know if your cash app is business account?
If your cash app is a business account, you can check that from your account. If there’s a small building image beside your name, you are a verified business account. You can confirm it more by checking the account type on App Settings < Personal Menu.
Cash app for business vs personal
It is completely fair if you have thought to switch your business account to personal or vice versa but you need to figure out the differences before you move ahead.
You can have both a business and personal account but the latest rule says that you should have only one account. Therefore, the best practices to switch your account or if you need both of them you can keep them separate to have good management.
Both have different terms and conditions and benefits.
For instance, a business account has a higher transaction limit as compared to a personal account. Additionally, the app will charge you a 2.75% fee for every payment received to your business account in exchange for services. Besides, you will also get a form 1099 at the year-end from the cash app itself. Therefore, there won’t be any issue of filing taxes to the IRS. In the case of a personal account, you don’t need to worry about taxes and refunds.
Cash App business account icon
The cash app business account icon is a small and colored building image present beside the cash app username. It gives you the sign that your account is operating as a business type and you can’t remove it. Whereas, there is no such icon or symbol in a personal account type.
Cash App personal account limit
Cash app has set different limits for different periods like you can transfer $250 in a week while receiving $1000 in a month. You can extend this limit up to a certain amount by verifying your account. The cash app requires your name, date of birth SSN number for verification.
Cash App personal account fees
If you hold a personal account on the cash app, you need not worry about fees because their standard deposits are completely free of cost. If you want to deposit money to your linked bank account, it is a standard deposit that takes hardly 1 to 3 business days. On the other hand, if you have got no time to wait and want an instant deposit then you should pay a 0.5% to 1.75% fee.
Cash App personal account features
As a cash app personal account, they allow you to transfer money upto $250 in a week and receive $1000 in a one-month period. You can increase the limit to a bit higher level by identity verification but you can’t expect to reach an unlimited limit because that’s the job of business accounts. Moreover, unless it is a standard deposit, they demand you to pay a 1.5% fee for all instant deposits.
All in all, a business account is beneficial to those who are running a small business and getting regular money from their customers, otherwise, a personal account type will do just fine.