Victor LukassoWhy does Cash App take money when someone sends me money
You might notice a slight deduction in a Cash App payment on your account and you’re confused as to the reason why? I’ll show you why the cash app takes money when you receive money.
This deduction or charge usually comes as a result of account choice or switch and isn’t or most times it’s also noticed when you transfer money to your linked bank account.
By default, the cash app doesn’t charge you for sending or receiving payments on their platform but if you noticed a deduction in any transaction you make it could be any of the following reasons.
- 1. Using a Business Cash App Account
Opting in for a business cash App implies that the transactions on your account are mainly business inclined and not from family and friends so the cash app will tend to charge you 2.75% for any payment you receive.
It is not so with personal account users since the sending and receiving features are made free for them.
- 2. Using the Instant Transfer Feature
Both personal and business cash app owners might experience a 1.5% charge of any money they transfer to their bank using the Instant Transfer Feature.
Cash App instant transfer feature helps you move money faster to your bank account in less than 30 mins meanwhile the standard transfer usually takes 1-3days to reflect in your bank account but it’s totally free to use.
- 3. Don’t send payments from your linked bank or card
Most times to avoid charges on your cash app account it’s advised to make payment from your cash app balance rather than a linked credit card.
The financial institution might decide to charge a fee for the transaction which you can’t do anything about.
What is a Cash App Business Account?
A business CashApp account is an account opened solely for business purposes only and may not be used for personal use to avoid being kicked off the platform.
You can switch to a business account by following the below guide.
1. log in to your cash app account
2. Tap on the profile icon
3. Click on Personal to open your account settings
4. Scroll down and click on “Change Account Type”
5. Lastly, click on “Change this Account” to effect changes
That’s all.
You should now notice a shop icon attached to the front of your cash app account whenever a payment is made.
How to stop Cash App from taking a fee when receiving money
As said earlier, there are two scenarios that can cause Cash App to remove charges for every transaction received. Let’s see how to stop Cash App fees whenever someone sends you money.
1. Switch to a Personal Cash App account
If you switched to a business account by will or mistake and can’t afford to bear charges for family and friend payments then you can resort to switching your account to a personal account.
You can make this switch by contacting the cash app from the support menu and it’ll
2. Use the standard bank transfer
While sending money to your bank account, it’s advised that you use the standard bank transfer feature to avoid the 1.5% charge for the transaction.
Although, In some cases when you need the money in a hurry you can then use the instant transfer feature for ease.
3. Avoid making payments using a linked bank card
Making payments from your bank might cause the financial institution to charge you a one-time processing fee but you can avoid this fee by sending out payments from your Cash app balance.
That’s all on fixing the charges when receiving the money to your cash app account.
How can I switch from a Business to Personal Cash App Account?
Making a switch to a personal Cash App account is only advised when you aren’t using the account for business purposes again.
If you switch to a personal account and still receive business payments then the cash app can decide to close your account permanently.
So, ensure that there’s no business payment coming in before switching your Cash App account type.
1. log in to your cash app account
2. Tap on the profile icon
3. Click on Business to open your account settings
4. Scroll down and click on “Change Account Type”
5. Finally click on “Change this account” to effect the changes.
That’s it. You can now enjoy the freedom attached to receiving and sending payments on a personal account.
Do you have to pay a fee to receive money on Cash App from a business account?
Yes, a 2.75% fee is deducted for every payment received but sending payment is free of charge.
How to Withdraw on Cash App
Withdrawing your money on CashApp is quite easy and stress-free. Although in some cases, it might take up to 72 hours to hit your bank account if you use the instant transfer option.
1. log in to your cash app
2. Under the Banking Menu
3. Click on Cash Out
4. Input the amount you’ll like to cash out and source
5. Finally, select if you want a standard or instant transfer.
That’s all.
Your payment will hit your bank account depending on the transfer option selected during cash out.
Wrapping UP
If you’re wondering why the cash app takes money when someone sends you money then worry no more as this article should’ve enlightened you on the causes and fixes.
So, go ahead and switch to a personal Cash app account to stop Cash app fees.
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