Is Cash App Business Safer than Personal?

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Cash App is a convenient money transfer app that lets you send and receive money, make payments, invest and more. But if you’ve never signed up for Cash App before, you might be wondering: Which is safer, personal or business Cash App accounts?

The bottom line is that both Cash App’s personal and business accounts are safe for day-to-day transfers. Each version of the app has its own pros and cons. Below is a breakdown of the differences between Cash for Business and Cash App’s personal accounts to help you decide which is right for you. 

Key Takeaways

  • Both Cash App personal and Cash for Business are secure, convenient options for quick payments. 
  • Cash for Business comes with higher fees to receive payments but more business features. 
  • Any funds stored in your Cash App account are not FDIC-insured. 
  • You can quickly convert your Personal account to a Cash for Business account. 

Cash App Personal

A Cash App personal account is a standard peer-to-peer money transfer service. Like other P2P apps, you can use your Cash App account to send and receive money between other Cash App users. You can also make payments with participating retailers and sign up for a Cash App debit card to spend your Cash App Balance anywhere. 

Some key features of a Cash App personal account include:

  • Instant P2P transfers
  • Free standard deposits to your bank account
  • Instant Deposits with a small fee — between 0.5% to 1.75% (minimum of $0.25)
  • Online payments with select retailers
  • Access to a customizable Cash Card

It’s free to sign up for a Cash App personal account, and most of the services are free — although there are some fees for instant bank transfer. 

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Cash App Business

Cash App’s business account, Cash for Business, is a free account for small business owners. This account comes with all the features of a personal account, plus built-in tax reporting. 

There are no enrollment fees to open a Cash for Business account. The IRS requires Cash App to report every business owner’s income on the platform — so you will receive a 1099 for taxes if you earn more than $600 in a year.

Cash for Business is ideal for small business owners and entrepreneurs. It has fewer features than other business banking services*, but it’s free and easy to use, so it can be a good choice if your new business is just starting out. 

Cash App Business vs. Personal Accounts: Considerations

Cash App personal and Cash for Business both let you make instant transfers, send funds to your bank account and receive payments. The question is: which option is right for you or your business? Here are a few considerations.


Cash App’s personal and business accounts are convenient and easy to use. However, for a business owner, a Cash for Business account might be a more convenient choice because it has tax reporting tools built in.


Although Cash for Business offers more convenient features than a Cash App personal account, that convenience comes at a price. Cash App charges a 2.75% processing fee for all incoming transactions on a Cash for Business account.

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Here’s a breakdown of Cash App’s fees for each account:

Cash App Personal Account

  • Sending money: Free
  • Receiving money: Free
  • Standard bank transfers: Free
  • Instant bank transfers: 0.5% – 1.75%, with a minimum fee of $0.25

Cash for Business

  • Sending money: Free
  • Receiving money: 2.75% fee on all incoming transactions
  • Standard bank transfers: Free
  • Instant bank transfers: Free

It’s possible to avoid fees altogether with a Cash App personal account. Fees are unavoidable with Cash for Business, but you’ll only pay for incoming transactions; in other words, you won’t pay for your Cash for Business account unless you’re making money. 


Cash App imposes a $1,000 per month limit on sending and receiving for unverified accounts. After you verify your identity, your sending limits will increase . A standard Cash App limit per week is around $7,500, but this can be increased over time. The company does not specify different Cash App business account limits, so they are likely the same as for personal accounts. 


Cash App uses encryption to protect funds and user information. This applies to both types of accounts. Neither option — Cash App personal or Cash for Business — is technically less secure than the other. 

Although the app is encrypted, it isn’t FDIC-insured unless you have a Cash Card. With a Cash Card, up to $250,000 of your funds are insured. Cash App also states that it will not reimburse lost funds on individual transactions. 

If you don’t have a Cash Card or keep more than $250,000 in your account, you should transfer funds to your savings account or a business bank account to keep them safe. 

How To Convert Your Cash App Personal Account to a Business Account

If you have a Cash App personal account and want more business features, you don’t have to open a new account — you can change account types for free. Here’s how:

  1. Open the app.
  2. Select “Profile” in the top-right corner of your home screen.
  3. Select “Personal” or “Edit Profile,” then find “Switch to a Business Account” toward the bottom of the screen.
  4. The app will guide you through the rest of the process.
  5. You’ll know you successfully completed the switch if you see a green building icon next to your profile information on the home screen.  
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Note that if you switch to a Cash for Business account, you won’t be able to separate personal and business spending in the app. If you want to continue using Cash App for personal spending, it’s best to open two separate accounts. 

Cash App Business vs Personal: Which Is Right for You?

Cash App’s personal and business accounts are both secure, convenient and come with low fees. Neither option is more or less safe than the other, but neither is FDIC-insured unless you have a Cash Card. 

Is it better to have Cash App’s business or personal account? If you’re a small business owner, consider your priorities. Cash for Business comes with a 2.75% fee for incoming payments but includes free tax reporting. If the benefits are worth the fees for your business, make the switch — just remember to regularly transfer your earnings to an FDIC-insured bank account. 

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

*Cash App is a financial platform, not a bank. Banking services provided by Cash App’s bank partner(s).


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