Venmo for Business: How It Works, Fees and Tips

In the age of digital financial operations, online transactions, and contactless payments, there are multiple payment solutions for businesses to match pretty much any need. Are you a startup looking for a reliable and affordable way of sending and receiving money? Or do you seek an alternative payment method to support your growing commercial network? Whatever the case, consider Venmo.

Can you use Venmo for business? Yes! Initially set up for personal transactions, this popular peer-to-peer platform made its services available for businesses in 2020. In our guide, you’ll find out everything you need to know about using Venmo for business. So, buckle up, and off you go!

Understanding Venmo for Business

Venmo for business is a real find for smaller companies, online ventures, and all types of merchants, especially those targeting younger generations who tend to prioritize digital transactions and online payment services.

To start using Venmo for small businesses, you should register a business profile on the platform first. Business subscriptions are only available to current Venmo users. You can create both individual and business profiles in one go using either the website or a mobile app:

• Sign in as an individual and select “Create a Business Profile” on the “Me” tab in the app or the drop-down menu on the website and tap “Get Started”;
• Choose your Social Security Number (SSN) or Employer Identification Number (EIN) to be further used for tax purposes;
• Fill out your business profile with your company info, such as business name, type, and category, and a brief description of your enterprise;
• Provide a mailing address you use for business purposes;
• Add your company’s contact data for your customers to get in touch with you;
• Review and check all the info you’ve entered and tap “Publish” to activate your business profile.

Note: To link a bank account to your Venmo business profile, go to “Settings” and click “Add Bank or Card” to initiate the desired payment method.

Requesting and Receiving Customer Payments

Within the Venmo app or website, you can generate payment requests and forward them to your customers via email, text message, or any other preferred communication method. Customers can then click on the payment link to complete the operation. Funds will be deposited directly to your linked bank account. You can track your Venmo business transactions in real-time through your Venmo for Business dashboard.

Venmo for Business Features

Business profiles on this platform are distinguished by a set of characteristics specifically customized to help sellers optimize transactions and ease the process of receiving money for small businesses.

• Tipping Function: Business owners can add tips to the final payment amount using the “Tipping” option in the Settings;
• Split Limits: For record accuracy and operational conveniences, individual and business accounts have separate limits for online payments and bank transfers;
• Balance Transfers: By verifying your identity on Venmo, you get access to immediate balance transfers between your personal and business accounts;
• Quick Refunds: Should you need to return a customer payment, you can do it from your Venmo profile in an instant. The system automatically links this refund with the relevant customer for hassle-free accounting.

Venmo for Business Benefits

Venmo offers quite a few benefits for companies to accept payments, which has made it an attractive option for over 2 million business users that are already onboard.

• Effortless Payment Processing: Customers can pay quickly and securely using their preferred payment method, whether it’s their Venmo balance, linked bank account, or credit/debit card;
• Convenient Transaction Management: Using Venmo for Business, companies get robust tools for tracking and managing transactions, including detailed transaction history, reporting features, and payment options with existing POS systems and e-commerce platforms;
• Secure Transactions: The platform employs advanced security measures to protect both businesses and customers against fraud and unauthorized transactions, giving peace of mind when conducting business transactions online;
• Extended Customer Reach: With millions of active users, Venmo will make your business more discoverable among those who favor online and contactless payments, thus improving your potential customer reach.

How Much Does Venmo Charge for Business?

Lower Venmo fees for businesses are yet another prominent benefit of this payment platform that makes it a great choice for startuppers and beginner merchants on stringent budgets.

Though at the lower side of the range, Venmo business account fees for sellers include:

• 1.9% + $0.10 for direct transactions from other Venmo accounts;
• 2.29% + $0.10 for contactless payments via the Tap to Pay function on iOS and Android;
• 2.9% in addition to 1.9% + $0.10 for promo redemption payments.

How to Use Venmo for Business Effectively

Whether you are already using Venmo for business or only plan to tap into this payment service, here are a few strategies that will help you make the most of this tool.

• Promote Your Venmo for Business: Display the Venmo logo prominently on your website, social media profiles, and in-store signage to encourage customers to use this payment method;
• Offer Incentives: Provide incentives such as discounts or rewards for customers who choose to pay with Venmo. This will help drive adoption among your customer base;
• Set Up Notifications: Enable notifications within the Venmo app or dashboard to receive real-time alerts for incoming payments. Staying informed allows you to manage transactions promptly and efficiently;
• Monitor Transaction History: Regularly review your transaction history within the Venmo for business dashboard to track payments, identify trends, and reconcile your finances;
• Keep an Eye for Updates: Regularly check for announcements from Venmo and explore how new features can enhance your business operations.

Final Thought

Venmo for business is more than just a payment processing tool, it’s rather a solid gateway to enhanced customer experiences, streamlined operations, and accelerated growth. By leveraging this feature-rich platform, companies can unlock multiple benefits, capabilities, and conveniences that contribute to their success. Consider embracing Venmo for your commercial transactions and check its official website to find out more about Venmo for small businesses.

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