Business Efficiency & Process Optimization Consultant 
Why Business Owners Should Avoid CashApp

Business Owners and CashApp.

I admit that CashApp is one of my favorite applications on the personal side of accounting.  Why?  Although you can pull cash app reports reconciling CashApp can be a pain and getting the money to the bank can also throw off your banking process.  What do you do when you do not want to miss out on receiving a payment?  But anyway, let me move on and tell you they can pay using their cash app card inside of the app and pay through a merchant account that you can connect.

CashApp is more for personal use.

Until CashApp works, out the business side, your clients can pay the invoice by using the card information from the cash app.  If you have one income account and one operating expenses account, the cash app needs to connect to the income account to receive payment.  Cashapp will not allow you to change bank accounts very easily.  I would recommend using Cashapp to make reoccurring bill payments as it will deter unplanned drafts to your bank account.

My merchant account checks business owners and cashapp.

I recommend sticking with a couple of primary merchant services for payment acceptance.  Another option today is an electronic check with Deluxe e-checks.    Trying to monitor each platform can eat into your time, and the expense to maintain the merchant account fees adds up.  If you are trying to avoid those fees, why?  The merchant account fees are deductible, and remember, free is not always best. 

Here’s an example to direct your customers to the CashApp cards if needed.

Merchant account growth over time.

Did you know merchant platforms are not credit card acceptance used to be back in the day? Back in the day, you had to sign up to accept different types of credit cards with individual companies. Today, your merchant services connect with those companies for you so you can accept multiple payments. Receiving payments like CashApp may seem fast but it is not for the business world. Although you can set up an account in your name it is not an easy app to pull reports nor does it connect to accounting software.

Automation or more bookkeeping work?

You will create more work with this application as bookkeeping and reconciliation would take more time and updates. Also, note although CashApp is owned by Square it is not the same merchant account as their SquareUp merchant account or the pos (point of sale) systems. Accounting software will work with SquareUp so you can accept payments using square and people can pay your invoices online. SquareUp still requires most clients to enter debit/credit card information.

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