Why Does Cash App Business Take a Fee?

Cash App Business takes a fee because it is processing a commercial transaction rather than a personal transfer between friends or family. Business payments involve services such as payment processing, transaction records, customer-payment features, security monitoring, and tools designed for sellers.

Cash App currently charges 2.6% plus $0.15 when a business account receives a payment from a customer’s Cash App account. A $50 payment at that rate would have a $1.45 processing fee, while a $200 payment would have a $5.35 fee. Cash App also lists a 3% processing fee for certain payments made using a card. The fee is normally deducted before the remaining amount becomes available in the business account.

Cash App Business does not generally charge a basic monthly account fee, so the company earns money when transactions occur. Using a personal account for regular sales to avoid the processing fee can conflict with Cash App’s account rules and may cause the account to be reclassified or restricted.