Does Cash App charge fees to receive money? Confused, aren’t you? Well, you are not alone who has confusion over the Cash App fee to receive money from contacts. The reason behind the confusion is the fact that the name of Square Cash App instills a thought of a fast, safe, and free payment app. There is no doubt in the fact that Cash App is a free payment app but it doesn’t mean everything is free. There are some types of transactions and payments that are not free on Cash App such as cash withdrawal, instant transfer, and credit card payments. But, what about receiving money on Cash App? Is there any Cash App fee to receive money? Let’s find out the answer.
Also read: How to increase Cash App limit?
Does Cash App charge a fee to receive money?
Whenever I tell cashapp users that Cash App mobile application is a free payment app, I get this question. How much does Cash App charge to receive money? The answer to this question is subjective. If you have heard that Cash App is a free payment then you have heard the right information. But, the fact that “Cash App is free” is not entirely true. We will get over it in detail in the following section but before that let me clear one thing.
Cash App doesn’t charge a fee to receive money from other Cash App users if your Cash App account is personal. Be informed that there are two types of Cash App accounts. One is personal and the second is a business account. Now whether or not you have to pay a fee to receive money depends upon the type of Cash App accounts you have.
Having a personal Cash App account means you can send, receive, and store money without any fee. But, this is not the case with a business account. Square Cash App charges the business account with a fee of up to 2.75% for receiving money. This fee can be best described as the biggest difference between the Cash App personal and business account.
How much does Cash App charge to receive money?
Cash App business account comes with the promise of simple, safe, and fast payment services. But, the convenience and benefits of the Cash App business account are not free. Cash App charges $2.75% of the transaction value for each transaction. In addition to this fee, there are a few more types of fees that are applicable on both types of accounts – business accounts and personal accounts.
- A $3% fee to make a payment using a credit card is applicable on all types of accounts personal and business accounts.
- An instant deposit fee of $1.5% to transfer money from Cash App to a bank account is also applicable to both types of accounts.
- Cash App cash out fee of $2 at an ATM is also applicable on business and personal Cash App accounts.
Why does Cash App take a fee when receiving money?
Cash App has clearly mentioned in their term of services that Cash App business accounts are subject to bear a $2.75% fee to successfully receive money. So, stop wondering if you are being charged whenever you receive a payment from your customer to your Cash App business account.
Why is Cash App charging me a fee to receive money?
If you are using a Cash App business account then how you can expect that you will not be charged for receiving money from your customers. In case you don’t want to be charged for receiving money from your customers then I have good news for you.
And the good news is that you can prevent Cash App from charging your account for receiving money. With that being said, I mean, you can avoid the Cash App fee for receiving money. How? All you need to do is just convert your account from a business to a personal account. These are the steps:
- So, as a first step, open the Cash App.
- Get into your profile section.
- Scroll down and select the “Personal” tab.
- After that select “Change Account Type”.
- Now Cash App will prompt you to scan your thumb or enter a Cash App PIN.
- In just a few seconds, your Cash App account will convert from business to personal.
- From now on, you will be able to recieve money for free on Cash App.