Launched in 2013 by Square Inc., Cash App revolutionized the way people handled peer-to-peer payments. In 2015, Cash App expanded its services to include business accounts. The introduction of $Cashtags and QR codes simplified payment processes, making Cash App a versatile tool for personal and business use.

As of 2024, Cash App has established itself as a leading player in the financial technology sector. The platform’s continued innovation has attracted a diverse user base. For businesses, Cash App offers tools for managing transactions, tracking sales and engaging with customers. 

In this review, we will delve into how Cash App for Business works, evaluate its pros and cons, examine the associated fees and explore alternative solutions for small businesses. Whether you’re a seasoned entrepreneur or just starting out, this guide will help you determine if Cash App for Business is the right choice for your needs.

Cash App Features for Businesses

Cash App offers a range of unique features designed specifically for businesses. These tools can help streamline operations, enhance financial management, and improve efficiency. Below, we provide a detailed breakdown of these distinctive features and how they can benefit your business.

Account Setup and Management

Setting up a Cash App Business account is a straightforward process. Businesses can create an account for free through the Cash App platform, providing essential details such as business name, type and tax identification information. 

Once set up, managing the account is intuitive, allowing business owners to access real-time transaction data, view payment history, and customize settings to fit their operational needs. The interface is user-friendly, making it easy for entrepreneurs to navigate and manage their finances effectively.

Multi-User Access and Permissions

Cash App Business accounts do not offer the ability to manage multiple users, creating an obstacle for businesses with several employees handling payments. However, account owners can implement a secure, shared access tool or password manager that allows multiple employees to access the account as needed. This can help manage login credentials securely and ensure that all authorized team members can perform necessary tasks.

In-Person Payments

Cash App Business accounts facilitate in-person transactions through a variety of methods. Businesses can generate a unique QR code or $Cashtag, to provide customers with a simple way to pay using their mobile devices. They also have the flexibility to accept payments using debit and credit cards directly through the Cash App interface.

Online Transactions

For online transactions, Cash App Business accounts support payments through a business’s website or app. By using Cash App’s payment processing features, businesses can accept payments through credit and debit cards, as well as peer-to-peer transfers.

Recurring Payments

Cash App supports users making recurring payments, but it does not allow users to request recurring payments. This is a drawback for businesses that want to automate billing processes. However, integrated platforms like Stripe may be able to perform this task automatically.

Invoice Creation, Tracking and Reminders

Cash App Business accounts allow businesses to create and customize invoices directly within the app by requesting money. However, they do not have invoice tracking and reminder features at this point. As of May 2024, the company is considering adding credit building and subscription management tools alongside bill pay.

Cash Card for Business

The Cash Card for Business is a Visa debit card that can be linked to an account’s Cash App balance. It offers the convenience of direct access to funds and can be used for both online and in-store purchases. Businesses may access their card details as soon as they order the card, enabling them to use it with digital wallets like Apple Pay or Google Pay.

The Cash Card supports a high transaction limit, with a daily limit of $7,000, a weekly limit of $10,000, and a monthly limit of $15,000, making it suitable for a variety of business spending needs. However, it is still subject to the same expense management limitations as the Business account.

Pricing and Fees Of Cash App for Business

Cash App for Business operates on a transparent fee structure. The standard transaction fee for processing payments is 2.75% per transaction. This fee applies to each payment you receive through the app, whether it is made via debit or credit card. This flat rate simplifies financial planning for businesses by providing a clear and predictable cost for each transaction processed.

Volume-Based Discounts

Currently, Cash App for Business does not offer volume-based discounts. Unlike some other payment processors that provide reduced fees for businesses with higher transaction volumes, Cash App maintains a uniform rate of 2.75% per transaction. This means that businesses, regardless of their sales volume, will incur the same transaction fee rate.

Free Instant Deposits

Cash App offers instant deposits to business accounts at no additional cost, allowing funds to be available immediately in the linked debit card. This feature is included as part of the business account service and does not incur extra fees. This stands in contrast to some competitors who might charge for expedited fund transfers, making Cash App a cost-effective choice for businesses needing quick access to their funds.

Comparison with Other Payment Processors

When compared to other payment processors, Cash App’s 2.75% transaction fee is on par with its competitors and more clear. For instance, PayPal charges 2.99% plus $0.49 per transaction for online payments, while Square, another product from Block Inc., has a similar rate of 2.6% plus $0.10 per transaction for in-person payments. 

In terms of instant deposits, Cash App is competitive as it includes this feature at no extra charge, whereas other processors might levy additional fees for expedited fund transfers. This can be a significant advantage for businesses that require immediate access to their funds, as it helps avoid additional costs that might arise from faster payout options with other services.

Cash App for Business Pros and Cons

There are a lot of different elements to consider when weighing if Cash App for Business is right for you. Here are some of the most important features to consider:

Pros

  • User-friendly interface: Cash App for Business is celebrated for its intuitive, user-friendly interface and mobile-first design. This modern, streamlined approach ensures that business owners can easily navigate the app, manage transactions, and track their finances on the go. 
  • Quick setup process: Setting up a Cash App for Business account is remarkably efficient. The process involves minimal paperwork and can be completed quickly, allowing businesses to start accepting payments almost immediately. 
  • Wide user base for peer-to-peer payments: With a substantial user base, Cash App offers businesses access to a large pool of potential customers who are already familiar with the platform, making it easier for customers to transact.
  • Real-time transaction monitoring: Cash App provides real-time transaction monitoring, which is crucial for businesses that need up-to-date insights into their financial activity. 

Cons

  • Limited customer support options: One drawback of Cash App for Business is its limited customer support options. The platform primarily offers support through in-app messaging and email, which can lead to slower response times compared to other payment processors that provide more extensive customer service channels.
  • Lack of advanced features: While Cash App is excellent for basic payment processing, it lacks some advanced features found in more specialized business platforms.
  • Limited inventory management: Cash App for Business does not offer inventory management tools. Businesses requiring comprehensive inventory tracking and management must look for additional solutions.
  • Basic reporting tools: The reporting tools available on Cash App are relatively basic. While the app provides real-time transaction monitoring, it does not offer the depth of analytical tools or customizable reports that some dedicated business platforms provide.
  • Potential perception issues: Using a consumer-focused app like Cash App for business purposes might pose perception issues. Some customers or partners might view it as less professional than using dedicated business payment solutions. 
  • Limitations on transaction amounts: Cash App imposes certain limitations on transaction amounts. For example, the Cash App Card has transaction limits of $7,000 per transaction, $10,000 per week and $15,000 per month. 

Cash App Security and Compliance

Cash App employs encryption and fraud detection technology to ensure the security of users’ data and funds. All information submitted through the app is encrypted and securely transmitted to Cash App’s servers, regardless of the type of internet connection used. This encryption is complemented by the same fraud detection infrastructure and safety standards that monitor millions of daily transactions processed by Square Point of Sale. Cash App’s compliance with the Payment Card Industry Data Security Standard (PCI-DSS) Level 1 further underscores its commitment to safeguarding user data.

As a financial service provider, Cash App adheres to stringent regulatory requirements to maintain its operational licenses and ensure user protection. Cash App also offers dispute resolution and chargeback handling mechanisms to address any transactional discrepancies or unauthorized transactions. 

To enhance security, Cash App implements comprehensive user verification processes. Each time a user signs into their account, they receive a one-time-use login code. Additionally, users are encouraged to enable features such as Security Lock, which requires a passcode, Touch ID or Face ID for every payment. Cash App also prompts users to verify their identity with their Social Security Number (SSN) for certain features. 

An Alternative to Cash App for Business: North One

North One is a digital banking platform for small businesses, freelancers and startups. Launched in 2019, it quickly established itself as a competitive alternative to traditional banks by offering a suite of financial tools designed to simplify money management for business owners. The platform emphasizes a user-friendly, mobile-first approach, making it easy for business owners to manage their finances on the go.

North One Key Features

North One provides several advantages for business users. Opening an account is straightforward, with a process that can be completed entirely online. One of North One’s significant benefits is its transparent fee structure. Free users get access to most standard banking services without additional charges for transactions, ATM use, overdrafts or non-sufficient funds (NSF), and their “Plus” accounts offer a flat monthly fee. Businesses can create multiple sub-accounts, known as envelopes, to manage and budget funds for specific purposes, such as tax payments or savings goals. This feature helps businesses in financial planning and allocation. 

Every North One account comes with a MasterCard debit card, which can be expedited if necessary. Businesses can make cash deposits at any GreenDot location, including many retail stores, at no extra cost. North One also supports domestic wire transfers for a fee of $15 per transfer, though it does not support international wire transfers. Additionally, North One integrates with popular accounting software and payment platforms.

Comparison with Cash App

North One primarily targets small businesses, freelancers and startups, offering a comprehensive suite of business banking features. In contrast, Cash App was initially designed for peer-to-peer payments and later expanded its services to include features catering to individual entrepreneurs and small merchants.

North One offers free accounts and a Plus account with a flat $20 monthly fee. They generally limit deposits to $1,500 per day and $5,000 per month, with a service fee of up to $4.95 per deposit. On the other hand, Cash App charges transaction fees of 2.75% per transaction.

North One offers unique features such as sub-accounts for budgeting, cash deposits and withdrawals at GreenDot locations and integrations with accounting software. Cash App provides instant deposits, customizable $Cashtags for easy payment acceptance and a straightforward mobile interface.

Businesses might opt for North One over Cash App for several reasons. North One’s focus on comprehensive business banking makes it an ideal choice for companies looking for a full-fledged banking solution with robust budgeting tools and seamless accounting software integration. Additionally, North One’s cash deposit option at GreenDot locations is beneficial for businesses handling significant cash amounts. The sub-accounts feature allows businesses to manage and allocate funds more effectively, enhancing financial planning and control.

Is Cash App for Business Right for You?

Cash App for Business offers a user-friendly interface, quick setup and real-time transaction monitoring, making it an attractive option for small businesses and individual entrepreneurs. However, its limited customer support, basic reporting tools and restrictions on high-risk businesses may deter some users. For businesses with higher transaction volumes or more complex financial needs, alternatives like North One provide more robust features and transparent fee structures. As Cash App continues to expand its business services, potential users should carefully assess their specific needs and business size to determine the best financial platform. Ultimately, choosing the right platform involves balancing ease of use, cost and the specific features required to support and grow your business.