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Venmo Business Account Review 2024: Price, Pros, Cons

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full review

Venmo is a peer-to-peer payment app that allows customers to transfer funds to business accounts. However, Venmo for business is not a POS system or payment service provider. He does not sell POS hardware or software or provide businesses with a secure way to accept payments from his online store website.
Instead, your Venmo business account is linked to your personal Venmo account, and it's free to sign up and use. You can move back and forth between accounts and track business and personal transactions separately. Both accounts can be accessed through the same login. The only costs associated with a Venmo business account are a per-transaction fee and an optional fee for instant transfers.

To register for a Venmo business account:

  1. Once you open the Venmo app with your personal account, go to your profile and tap Create Business Profile. This option may be located in your profile settings (look for the gear icon) or just above your profile picture.

  2. Add your business name, profile photo, and background image. You can also add photos of your products to your gallery.

  3. Tap Publish to make your business profile public.

Once set up, businesses can accept payments using usernames, integrated Shopify and PayPal checkouts, or unique QR codes. Here are some Venmo features that can help your business:

  • Chip: Enable tipping in your account settings to encourage customers to add a tip to their purchases.

  • Return value: Customers who purchase with a QR code will receive a return barcode on their email receipt. Refund policies are up to the seller, but Venmo can forward full and partial refunds to the customer's original payment method.

  • Dispute: Handle in-app disputes and chargebacks with your customer's credit card issuer through Venmo Support. Chargebacks can take up to 30 days to dispute and 75 days to resolve.

  • Checkout integration: Incorporate Venmo payment links into your PayPal, Shopify, and Braintree online checkouts to give your customers even more payment options.

Venmo business accounts are ideal for businesses that:

  • Mainly sold on the go. A Venmo business account makes it easy to accept contactless payments at pop-ups, farmers markets, and other temporary events. Customers can easily transfer funds from anywhere through her Venmo app.

  • Accept QR code payments: In some cases, contactless payments may be easier to perform than card payments. Plus, you don't need a card reader. Venmo's free QR code kit also makes it easy to share and display codes for your business account.

  • Use Shopify, PayPal, or Braintree. If you're already using Shopify, PayPal, or Braintree to sell products and get paid, adding Venmo will give your customers even more online payment options.

determining factors

Payment processing model

flat rate.

Payment fee

  • 1.9% plus 10 cents for each transaction between Venmo accounts.

  • 2.29% plus 10 cents per contactless “Tap to Pay” payment.

  • If customers pay by credit card, there will be a 3% fee.

  • There is a 1.75% fee for instant transfers (free transfers within 1-3 days).

monthly fee

none.

hardware cost

Venmo doesn't sell card readers, but it does offer a QR kit to display your business's QR code. Your first kit is free. Otherwise, it costs $14.99.

Contract period

There is no contract.

customer support

We are available via email, mobile app chat (8 AM to 10 PM Central Time daily), and phone (8 AM to 8 PM Central Time daily).

What makes Venmo business accounts stand out?

low cost

There are no monthly fees or setup fees associated with Venmo Business accounts. The platform also charges sellers a fee of 1.9% plus 10 cents per transaction. This is lower than many other payment processors, including Square's 2.6% plus 10 cents and Stripe's 2.7% plus 5 cents. For each transaction between individuals. The service charges consumers an additional 3% fee if they send money using a credit card, so for most users it is preferable to use a linked bank account or Venmo balance. You can

QR code payment option

Venmo, like its parent company PayPal and other peer-to-peer payment apps, uses QR codes to help customers find and pay with merchants touch-free. If your customers have an existing account, they can quickly scan your business QR code through the Venmo app.

Venmo generates a unique QR code for each business, and new business users can request a free physical QR kit that includes five coded stickers, a wallet card with a lanyard, and a tabletop display code with a stand.

tax form

Venmo will send 1099-K tax forms to business users who receive $600 or more annually, consistent with the reporting requirements of the American Rescue Plan Act of 2021. All taxable income, regardless of platform or amount, must be reported to his IRS, and Venmo does this. Send your business users the appropriate tax forms to make the process easier. Zelle, on the other hand, is not required by law to submit the form, even though funds transferred on its platform may be subject to tax.

What’s Not Enough with a Venmo Business Account?

No free instant transfers

Payments received through Venmo are not sent directly to your bank account. Must be transferred from the app. Standard transfers take 1-3 business days and are free. The fee for instant transfers is 1.75% of the amount transferred, with a minimum fee of 25 cents and a maximum fee of $25. Other payment processors, such as Zelle, allow you to send money instantly with no fees, but they don't accept credit cards like Venmo.

Available in the US only

Venmo is currently only available to sellers in the United States. This app is only compatible with US bank accounts and phone numbers that are verified with an SMS code. Businesses looking to expand internationally will need a payment processor like Stripe or PayPal that works in multiple currencies and countries.

Alternatives to Venmo Business Accounts

Perfect for accepting international payments

Fee:

  • 2.29% plus 9 cents for in-person and QR code transactions.

  • 3.49% plus 9 cents for manually entered card transactions.

  • 2.99% plus 49 cents on invoice (card payment).

  • 3.49% plus 49 cents invoicing (payable via PayPal).

PayPal, which owns Venmo, is a leading payment service provider with several options for small and medium-sized businesses. The platform charges flat transaction fees and offers a variety of checkout integrations, as well as features like subscription payments and merchant protection.

While Venmo can only be used for domestic transactions, PayPal allows users to send and receive payments in 25 currencies, making it a great option for international transactions.

Perfect for POS integration

Fee: 2.9% plus 30 cents if card not presented.

Cash App is a peer-to-peer payments app that integrates with Square, a POS system popular with many small businesses (both services are owned by Block). The platform can share data, and Square checkout devices can display Cash App QR codes for direct payments.

There are no platform-specific fees, just Square's standard processing fees. For business accounts, instant bank transfers are free. Cash App offers chargeback protection and does not add chargeback fees.

Fee: No fees.

Although Zelle does not offer specific features for businesses, it facilitates free, instant money transfers and can be used to pay small businesses registered with participating banks. The platform does not send out 1099-K tax forms summarizing transaction details, but it does allow fee-free payments from all customers within the Zelle network.

Unlike Venmo, Zelle doesn't have purchase protection and you can't pay with a credit card.



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