Wondering “Why is Cash App charging me a fee to receive money?” Keep reading this article to find out!
Cash App is a primarily free peer-to-peer payment platform. So, if you have a “Why is Cash App charging me a fee to receive money?” it’s because of the transfer you have made from a personal to a business account. Let’s discuss this in detail.
Why Do You Have to Pay a Fee When You Receive Funds on Cash App?
You have to pay a fee for every payment that hits your Cash App account because you have a business account. Since you are using Cash App for trade, Cash App deducts 2.5% from the funds you receive.
When Does Cash App Charge for Receiving Money?
Why is Cash App charging me a fee to receive money? Usually, Cash App is a free service. If you send money to someone or receive money from someone, Cash App won’t charge you anything. Acquiring the Cash App debit card does not come with any charges either.
The money you send from a debit card or bank account is free of charge. However, if you send money via your credit card, Cash App will charge a 3% fee.
Transferring money from your Cash App balance to your bank account does not cost anything upfront. If you can wait out 1 to 3 business days, the money will hit your bank account in due time.
However, you can make the transfer to be instant. You have to pay a 1.5% fee. Otherwise, a personal Cash App account does not come with any fees. It is only when you transfer to a Cash App business account do you have to pay a fee of 2.5% for each payment you get.
The nature of a business account is that it comes with all sorts of new privileges, but Cash App has to ensure no fraudulent activities are going on in the app. Charging you a fee for every payment allows Cash App to keep track of your huge transactions.
Since they are letting you conduct trade on their app, it also feels right for them to charge you for using their platform. Cash App also discourages doing business on the platform without switching to a Cash App business account. Even if you think the fees are too big, not switching might lead to account suspension.
Cash App for Business Account Fees
So, now you know, “Why is Cash App charging me a fee to receive money?” Cash App also has some other fees and privileges you might want to look into.
- You can receive any amount of money on the Cash App business account without any restriction. A customer can send you $15000 if they want without an issue.
- You won’t have any account limits at all, even while sending money.
- Only, you will have to pay a fee of 3% for each payment you receive.
- If the payment you receive is done through a credit card, you have to pay a fee of 2.75%.
- Instant deposits are free for Cash App business account users.
- Since it is a business account, you will also receive tax documents from Cash App you can use for your tax report.
How to Change Into a Cash App Business Account?
If you think Cash App is one of the platforms you want to use for your online business, let’s go through the process of how to turn a personal account into a business account.
Only, you can’t ask the question, “Why is Cash App charging me a fee to receive money?” afterward. You know the reason.
- Launch Cash App.
- Tap the profile icon on the upper right corner of the launch page.
- Select Personal, which will be the first option.
- Scroll down until you find Change Account Type. This will be at the bottom of the page.
- On the next screen, tap Change This Account.
- Tap confirm when they ask for it.
Before you change into a business account, you should verify your account.
To verify your account, you can either try sending more than the limit in a week or try to request the Cash App card. Both of these will trigger Cash App to take you to the verification page.
- Open Cash App.
- Tap on the Card tab. It’s the second option from the left at the bottom of the screen.
- Tap Get Free Cash Card.
- Follow the instructions.
- You will have to give details such as your date of birth, your debit card number, CVV, etc.
- Next, you have to submit your Social Security Number.
- Cash App will ask for access to your camera. You will have to click a picture of a government-approved ID, both the front and the back.
- The last step will require you to click a selfie.
Cash App will take about a day to promote you to verified status. For the verification process to work, you will have to be 18 years of age with a US phone number.
Change Cash App Business Account to Personal
One of the reasons you were so surprised when you had a “Why is Cash App charging me a fee to receive money?” might be because you didn’t realize you were using a business account.
Did you perhaps change your account type out of curiosity rather than to conduct trade? Do you want to go back to your personal account? Well, switching to a personal account isn’t as easy as changing to a business account.
You will have to converse directly with the Cash App support team to make the change.
- Open the Cash App.
- Tap your profile picture in the right corner of the screen.
- Scroll a little to find Support.
- From the options, choose Something Else.
- Now, tap on Can’t Access Old Account.
- Choose Contact Support.
- You can choose live chat or email.
- You will have to confirm your email address.
- Type the details of your issue, such as wanting to change to a personal account.
- Hit send.
They will contact you via email within a business day. You can also call Cash App support at 1 (800) 969-1940.
Some frequently asked questions related to Why is Cash App charging me a fee to receive money are taken from the internet.
How do I avoid the Cash App fee?
You can’t avoid the 2.5% fee on the Cash App business account for receiving payment. However, you can avoid instant transfers and sending payments through a credit card if you use a personal account.
Can you send $7000 through Cash App?
Once you verify your Cash App account, your daily sending limit is $7000. You can send a total of $17,500 every month. Before verification, you can not send more than $1000 per month. A business account does not have a limit on sending at all.
Does Cash App report to the IRS?
Cash app sends report to the IRS if you trade in cryptocurrency on the app. Otherwise, they also let you have tax documentation if you have a business account.
We have figured out, “Why is Cash App charging me a fee to receive money?” if you are not conducting business in any form, there’s no need to switch to a business account. However, if you are receiving money for goods and services you provide, you should switch. In the event Cash App finds out, they can freeze or ban your account permanently.
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