Why is Cash App charging me a fee to Receive money

Is Cash App charging you a fee to receive money?

If you are wondering why Cash App is charging you a fee to receive any payment on your account, you have been at the right place.

This is what we will explore in this article. This guide will also provide you with things you need to do to avoid Cash App from charging you a fee to receive the payment.

So, without any further delay, let’s begin.

Why Cash App is charging a fee to receive money

Cash App is charging you a fee to receive money on every payment because you have a business Cash App account. You will have to pay a 2.75 percent fee on every payment you receive for business accounts on Cash App.

When you sign up for a Cash App account, it is set to personal, and you have to change it to the business if you want to use Cash App to receive payments from your customers.

However, if you do not own a business and simply changed your Cash App account type from personal to business just to get the cool icon next to your profile or whatever be the reasons-you will get charged for every payment you receive.

Cash App logo

Now, you may ask that I am not receiving money from a customer on my Cash App account; rather, my friends or family members are sending me the payment, and I am still getting charged.

Do note that it doesn’t matter who sends you the money on your Cash App; you will be charged if you have a business Cash App account.

As per Cash App:

You agree to pay the applicable fees disclosed to you when you create your Cash for Business Account. All fees are charged at the time we process a transaction and are deducted first from the transferred or collected funds. Subject to the Cash App Terms and these Payment Terms, we reserve the right to change the fees upon reasonable advance notice. All Balances and all fees, charges, and payments collected or paid through the Payment Services are denominated in US dollars.

Note: Do not switch to Cash App personal account from a business account, if you really use it for your business.

If you want to avoid the Cash App fee for receiving money from your friends and family members, we recommend creating a separate personal Cash App account. In this way, you can keep your personal and business transaction separate without violating Cash App terms of service.

Well, if you do not have a business and still somehow your account is set to business, you can follow the steps below to change the account type from business to personal.

How to Change Cash App business account to personal

As stated above, by default, the Cash App account is set to personal. However, if your Cash App is somehow set to the business account, follow the steps below to change it to personal.

  • Open Cash App and log in into your account.
  • Go to App settings.
  • Now, click the ‘Personal’ menu.
  • Scroll down and click on “Change Account Type” from Business to Personal.
  • Enter your PIN or scan with your fingerprint to confirm.

Final Words

Cash App, owned by Square (a leading financial technology company in the US) is peer-to-peer money transferring app that allows users to use their smartphones to pay for goods and services, pay bills, and transfer money to friends and family.

You also order a Cash App card, a standard debit card that can be used to purchase items online and offline stores. You can also use it to withdraw cash from an ATM.

Well, Cash App is not limited to sending and receiving money. It has expanded its capabilities beyond just a P2P app; users can also receive direct deposit payments and ACH payments using the app. Moreover, you can even invest in bitcoins and trade stocks.

Cash App offers two types of accounts, one personal and the other business. The personal account is free to use, and it is mainly used to send and receive to friends and family members.

Small business owners can use the business Cash App account as it comes with certain benefits over the personal account, such as the ability to receive unlimited payments, create custom $Cashtag, and more.

However, the business Cash App account comes with a fee. If you have a business Cash App account, you will need to pay a 2.75 percent fee on every payment you receive.

So, as a recap to this post, if you are using Cash App only for personal transactions, and Cash App is still charging you for every payment you receive, you are likely to have a business Cash App account, as discussed above in the post.

To stop Cash App from charging you a fee on each payment, you will have to switch from a business account to a personal account by following the steps above. If you want to use Cash App for both business and personal transactions, we would suggest using two different accounts for both.

So, that’s all for now, folks. After reading this post, we hope you were able to know why Cash App was charging you a fee to receive money and hopefully have fixed it.

For more posts like this, you can head over to our Cash App category, or follow a few related posts below.

Further Reading:

What happens when you change your Cash App account to Business

Can I overdraft my Cash App card (at ATM, Gas Station)

How to Deposit a Check on Cash App with ‘Mobile Check Capture

Cash App invite friends get $15 (how long does it take?)