Since 2022, Venmo has more than 90 million user accounts, for both business and personal use.
According to a study by PayPal, consumers are 19% more likely to complete a payment using Venmo compared to traditional payment methods.¹ The average transaction on Venmo has a value of $74.²
With these factors in mind, you may consider offering Venmo as a payment method. But that doesn’t mean it’s without fees.
This article will take a look at the Venmo goods and services fee. It will also introduce Wise Business as an alternative way to receive international payments if you sell abroad.
Receive international payments with ease:Discover Wise Business
Does Venmo charge a fee for goods and services?
Yes - Venmo charges a fee when you sell goods or services.
The Venmo goods and services fee is automatically deducted from the total amount the buyer sends.³
This means the seller will receive the original price minus the Venmo goods and services fee.
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How much is Venmo goods and services fee?
| The Venmo goods and services fee is 1.9% + $0.10 of the transaction amount.³ |
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For an average transaction of $74, this means the seller would receive $72.59 and $1.41 of the payment would be used to pay the Venmo goods and services fee.
Why does Venmo charge a fee for goods and services
Venmo charges the goods and services fee to cover purchase protection on eligible payments.⁴
As an authorized merchant selling on a business profile, you’ll pay a transaction fee on every payment you receive. This fee is the same as the goods and services fee of 1.9% + $0.10, and pays for purchase protection.⁵
If you’re selling a good or service on a personal profile to an unknown buyer, then you will need to pay the Venmo goods and services fee. For example, perhaps you’re selling a used wardrobe or computer. In this case, the buyer may tag the payment as a purchase. By doing this, you’ll incur a fee as the seller.³
Tagging a payment as a purchase gives both the seller and buyer purchase protection. For the buyer, this means that if the product doesn’t arrive or isn’t as promised, you could be eligible for a refund.
For the seller, purchase protection can guard your money against claims from the buyer that they never received the product, if you can provide proof of shipping.⁴
How do I avoid goods and services fees on Venmo?
Payments without purchase protection don’t incur the Venmo goods and services fee. So as long as the payment isn’t tagged as a purchase, there won’t be a fee to pay.
This means that for personal payments from family and friends, you won’t need to pay the Venmo goods and services fee.
Likewise, if both you and your buyer don’t want purchase protection, then you won’t be entitled to pay the goods and services fee - although this isn’t recommended if you don’t know each other.
Receive business payments with Wise Business
If you're looking to sell goods and services internationally, then unfortunately, Venmo won't work as it's restricted to use within the US.⁶
A Wise Business account can help you save on the stress and expenses of international business.
Wise is a smart online alternative to traditional bank accounts. In the US, you can register for free, and simply pay a one-off fee to get 9 local account details.
The local account details for 9 major currencies make it easy to receive international payments, just like a local.
Register with Wise Business today 🚀
If you need to convert a payment, you’ll have access to the mid-market exchange rate, free of hidden fees. You can also store 40+ currencies in your Wise Business account with no monthly account fee.
| 🔍 More helpful articles on Venmo: | |
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Sources:
- Article: Consumers Are 19% More Likely to Complete a Purchase with Venmo Over Traditional Payment Methods
- Venmo vs. Cash App: A Look Inside the Most Popular Consumer Finance Products in the US
- Buying and Selling on Venmo FAQ
- Venmo User Agreement
- Business Profile Transaction Fees – Venmo
- Venmo user agreement
All sources checked May 3, 2023.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information. This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
