Why does Cash App Take Money When You Receive [Explained]

Cash App is popular app from Square Inc. which allows you to send and receive money with ease. If you use Cash App for your transactions and face a situation where Cash App has charged money when you receive money, it is a on obvious question to ask- Why Does Cash App take money when you receive. In this post, we are going to explain this issue in detail as to what could be the potential reasons for this and how to solve the issue.

Cash App does not charge any money for sending or receiving money from other Cash App users. You also don’t have to pay any fees if you add cash to your Cash App balance from your bank account or debit card.

So there ideally should not be a case where Cash App has taken money from any amount you received from other Cash App users. So what could be the reason why you are charged or are being charged money on receiving money.

Why Does Cash App Take Money When You Receive

Cash App does not charge any fees when you receive money on personal account. However, if you have a Cash App Business account, Cash App takes money equal to 2.75% of the amount received as fees.

With that context, let’s understand the scenarios where Cash App users are likely to face this issue:

When you have a Cash App Business Account

Having a Cash App Business Accounts involves a fee on receiving money which is 2.50% of the receipt amount.

A Cash App business account is meant for small business who want to use Cash App to receive money from their customers.

So Cash App ends up taking a cut of the received amount as a fees, but this is only when you have a business account.

So if the amount that has been taken by Cash App when you receive money is approximately equal to 2.50% of the transferred amount, it could very well be the case that your Cash App account is a business account type (2.75% if the payment is made via credit card)

It is important to note that you may have accidentally switched from Cash App personal account to a business account, which has happened with a few users. You have an option to do a Account Type switch in the Cash App. Business type accounts pay a percentage fee to Cash App for every received transfer.

You can check your account type on Cash App by tapping on the circular profile picture on your Cash App screen to open up your profile. If it shows a building icon below your profile pic, it means that you have a business Cash App account.

If you find yourself in this situation and want to change the account type back to Personal from Business Account, you will have to get in touch with the Cash App support team to get this done from the back end as there is no direct option to do this in the app.
A Cash App personal account has a receiving limit of only $1000 over 30 days for non-verified accounts, which increases to $7500 on completing verification. While a Cash App business account does not have any receiving amount limit.

If Someone is Scamming you asking you to pay fees to receive money

If a person is asking you to pay money saying it is for Cash App fees and is a fee for receiving money, it is highly likely that it is a scam as there is no fees for Cash App.

This is a fairly common scam that happens with Cash App users. In many cases, the person may even share a screenshot showing the fees, but don’t fall for it.

Simply avoid strangers who ask you to pre-deposit any amount as there are lot of people who get cheated by this method. Keep yourself updated on the various scams that happen on Cash App.

Cash App charges an instant transfer fee if you receive money from Cash App into your bank account

Cash App also charges a fee when you receive or withdraw money from your Cash App account to a linked debit card by doing an instant transfer or instant deposit. Such instant transfer is subject to a fee equal to 0.5% to 1.75% of the transferred amount (Minimum-0.25$) and so the amount you receive in your bank account is net of such fees.

Such fees are for the instant deposit and shown to you, when you initiate the transfer in Cash App.

To avoid this fees, you can do transfer to your linked bank account (not the debit card) which allows you to do a standard ACH transfer from your Cash App account. This does take longer 1-3 business days, but then again it’s free.

Wrap Up

It is important that you understand which of these 3 scenarios are you facing to determine the reason for why Cash App has taken money on your receipts. You can get in touch with Cash App support through the app for a specific case, which does not fit any of those described above.

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I have a passion for finance and technology. On this blog, I share helpful information on products and services that we use in our daily lives and simplify things I learned the hard way.

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