How to Use Cash App for Your Business: The Complete Guide

Cash App, also called Square Cash, appeared in 2013 as a simple app for peer-to-peer payments and was expanded for business use in 2015. This new cash app might be the answer for small businesses looking for a quick and easy way to accept payments or add another payment option for customers. However, some of its limitations could hold you back from realizing your goals for growth.

Check out how Square Cash for Business works to see if it’s the right fit for your payment processing needs.

The Basics of Using Square Cash for Business

Square Cash has one purpose: sending and receiving payments. Unlike the Square’s main point-of-sale (POS) product, it offers no tools for managing employees, tracking inventory or generating reports. You simply get an account with a unique username, also called a “cashtag,” which customers can use to send payments to your business.

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Along with the cashtag, Square gives Cash App business users a payment page with a custom URL. Customers pay by clicking a link on your website or visiting cash.me/YourCashtag. Just like hashtags or social media handles, cashtags are suitable for adding to your business card and marketing campaigns to let customers know Square Cash is an option for payment.

Customers already using Square Cash can send payments right from the app, which is available for iOS and Android, but an account isn’t required to pay through your cash.me page. All transactions incur a 2.75 percent fee, but deposits are free if you don’t need access to the money right away. For instant transfers, Square charges 1.5 percent of the balance.

When tax time rolls around, businesses that processed 200 or more payments totaling over $20,000 during the year receive a 1099-K form for reporting purposes.

Setting Up a Cash App Business Account

To get started with Square Cash for Business, you create an account either through the app or on the cash.app website. Your account may be linked to either a mobile number or an email address. Square sends a confirmation message with a special passcode via text or email, which then becomes the login for your account. After logging in, you’re prompted to confirm your first and last name and link a debit card.

Cash App accounts are personal by default, but it’s easy to switch. Go into the app settings, choose the Personal menu and change the account type to business. If at any point you need to know how to change Cash App from business back to personal, you should be able to do it from the same menu.

Finish linking Square Cash to your business by:

  • Adding your business bank account information
  • Creating a branded cashtag customers will recognize
  • Embedding your cash.me link in your website
  • Advertising that you now accept Square Cash payments!

Benefits and Drawbacks of Square Cash App Sign Up

As a pared-down version of Square POS, Cash App works best for small businesses that don’t need or want a ton of extra features and don’t handle a large volume of payments. Signing up is easy and quick, so you can start accepting mobile and credit card payments almost immediately.

Getting paid is simple, too. No extra equipment is required, not even a credit card swiper. All you need is your account and cashtag. Customers with Cash App accounts can search your business by cashtag, email address or phone number to send you a payment in the app, or you can send requests to Cash App users. The cash.me link expands the functionality by allowing anyone to pay online using a credit or debit card.

Using Square Cash for Business allows you to take more payment types without the need for a merchant account or pricey payment processor. This may be preferable if you’re just starting out and can’t afford an elaborate POS system or if your business deals primarily in low-volume online sales.

However, choosing Cash App instead of a more full-featured option has its downsides:

  • Payments are limited to $1,000 per month (unless you verify your account with more detailed personal information)
  • No overseas payments may be made or accepted
  • Businesses can’t use the Square Cash Visa debit card or its “Boost” discounts
  • Support is only available via email and social media
  • Square reserves the right to hold funds or terminate your account if deemed necessary

Once you start regularly passing the $1,000 per month mark in sales, you’ll have to either provide Square with your full name, date of birth and the last four digits of your social security number to increase your limits or upgrade to a more robust POS option.

Services Make Budgeting with a Business Cash App Easier

Because Square Cash for Business doesn’t have any of the bells and whistles of more sophisticated payment apps, you’ll need other services to track and manage your cash flow. You only have so much time in the day, and you want to be able to devote it to connecting with customers, making sales and growing your business instead of balancing your books. Outsourcing your accounting duties to a professional bookkeeper makes handling payments and managing expenses easier, minimizes errors and saves both time and money.

If you’re determined to grow your business, then streamlining the payment process with a smooth, hassle-free procedure is key. Upgrading to Square’s advanced POS software keeps your payment portal reliable, with customized options unique to your business model. While costly, utilizing Square’s advanced POS system is a necessary step along the road to growing your business. A financing advisor at National can help you examine your options for a short-term loan that will allow you to begin enjoying this robust payment solution, and take the next steps toward growing your operations!

Get started today by calling (888) 488-GROW, or fill out our 60-second application!

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About the Author, Matt Carrigan
Matt Carrigan is the Content Writer at National Business Capital & Services. He loves spending every day creating content to educate business owners across every industry about business growth strategies, and how they can access the funding they need!