Venmo for Business - Business Profiles | Venmo (2024)

FAQs

Why is Venmo telling me to create a business profile? ›

A business profile is a way to accept payments for your business on Venmo. It's linked to your existing Venmo account so you don't need to open a second account, but is a completely different profile—so you can keep business and personal transactions separate.

A few common reasons for payments failing on Venmo are: Your bank or card issuer is declining the transaction (outside of Venmo) The payment attempt has triggered one of Venmo's automated security flags.

Although Venmo does have a separate business app, they currently charge a non-refundable 1.9% plus $0.10 fee per transaction. Furthermore, Venmo for Business cannot integrate with most other popular business tools and has no ability to accept gratuities.

Venmo uses a national database to confirm your business entity when you create a business profile for a registered business. Learn more about why we need to verify your business and how to complete this process.

Business profiles allow Venmo users to accept payments for the sale of goods and services from customers on Venmo. Whether you're selling homemade planters at a craft fair, serving up one-of-a-kind haircuts, or mowing lawns, a business profile makes it easy for your customers to find and pay you on Venmo.

Venmo forbids these transactions for two reasons. Firstly, personal profiles don't have the tax records necessary for business accounts. And secondly, there's no way of ensuring customer privacy when accepting personal payments.

Businesses can avoid fees by waiting to access funds instead of paying instant deposit fees, as well as avoiding depositing and cashing checks through Venmo.

Why does Venmo continue to decline my payment? The main reason a Venmo account will continue to decline is because of app glitches, unstable internet connection, improper banking information, incorrect personal information, or suspicious activity on your account.

To create a Venmo Business Profile, you must be a US resident and have a Venmo personal account. You must also be a sole proprietor to add a Business Profile to your personal Venmo account. Businesses, LLCs, and partnerships can still use Venmo, but they must create a separate business account.

Venmo does not offer buyer or seller protection. Business usage of Venmo requires an application and explicit authorization.”

What is the best payment method for a small business? ›

Venmo business account fees

Each transaction is subject to a seller fee of 1.9% of the payment plus $0.10. Therefore, if someone pays your business 100 USD, you will receive 98 USD. This is because the subtracted amount is (1.9% X 100) + 0.1 = $2. The fee is non-refundable.

Essentially, if you use a third-party payment platform, like PayPal, Venmo or Cash App, to collect payments for your side gig or business, you must report payments of at least $600.

When you receive payments for goods and services on our platform, the IRS requires Venmo to report that payment activity if you reach the reporting threshold for these transactions. You can find the latest info about the current tax year's reporting thresholds on the IRS website.

The only way to accept payments for goods and services on Venmo is to be explicitly authorized to accept Venmo for purchases. This can be achieved by applying for a business profile or by having the sender tag a payment to a personal profile as a purchase.

In the app, you can use the drop-down at the top of the Me tab to toggle between your personal and business profiles. You'll use your personal profile's credentials to log in to and access either profile. Please keep in mind you'll only be able to create one business profile.

Contactless payments accepted with Tap to Pay

Please note, Venmo is not able to refund seller fees for payments sent to your business profile from another Venmo account. The fees help Venmo to continue to provide this service and develop the service further. Business profile fees are in line with industry standards.

While there is no setup fee for the Venmo business profile, nor any monthly fees, there are some Venmo business account fees to be aware of, such as the transaction fee for selling goods or services on the platform. Each transaction is subject to a seller fee of 1.9% of the payment plus $0.10.