Mobile payments are a core everyday tool around the world. Not a day goes by without the use of mobile payment apps like Venmo. Until now, Venmo was used for mobile payments between friends, colleagues, and for other non-business purposes. Thanks to its new “Business Profiles,” Venmo now offers payment solutions for businesses. Show
This article focuses on Venmo’s business features and how they may benefit your business. Keep reading to discover how to utilize Venmo’s latest functions. What is Venmo?Owned by Paypal, Venmo is a US mobile payment platform launched in 2009. It focuses on transactions between friends. Recently, the company added Venmo business accounts, allowing customers to pay businesses with just a few taps. Venmo currently has over 70 million customers and 2 million merchants. Although Venmo is a great solution for mobile payments, it’s surrounded by quite a few controversies. The application has faced privacy issues for its millions of users since 2018. Transaction histories are public by default, leaving payment amounts and transaction names open for everyone to see. Since then, the company has not taken action to improve its privacy. How does Venmo work?Venmo works by executing mobile payments with an account through a mobile app. You can find the app on the Google Play Store and App Store for free, though there are some fees associated with business accounts. More on that later on. After a user creates a Venmo account, they link it to their credit card, debit card, or bank account and can immediately begin making transactions with other Venmo users. Alternatively, customers can use their Venmo balance as a funding source. What is a Venmo Business Account?The Venmo business account allows businesses of any kind to receive payments from their customers. It is perfect for individuals, store owners, and registered businesses. Basic features available for business profiles:
NOTE: Venmo strictly prohibits any kind of transaction for selling or buying goods through a personal Venmo account. Other Venmo users can find your business profile by typing your business name or username in the search bar. For more precise results, users can select whether they want to see only Profiles or only Businesses. To appear in searches you’ll need to opt into the search feature. Another important thing to note is that business profiles can’t obtain a Venmo debit card. Those are only directed towards personal accounts, but Venmo says that they might make them available for business profiles in the future. Can you have a personal and business Venmo account?Yes, you can have a personal and a business Venmo account at the same time. By tapping on your profile picture in the top-left corner you can switch between them. This allows for an easy overview of both your accounts. Venmo business account vs personal accountBusiness accounts are basically an augmented version of personal accounts as they offer extra features that answer your business needs. Much like a personal account, a business account has social sharing features to share transactions with friends. Below are some of the benefits of using Venmo for business:
Personal accounts are only for peer-to-peer transfers, splitting bills, and other trades not involving any kind of customer-merchant interaction. Can You Use Venmo to Accept Payments in Your Business?As of 2021, Venmo started offering the possibility to open a profile that’s suitable for all your business needs, including accepting payments. Customers can pay anywhere with their balance if their Venmo account is linked to your business. All they have to do is connect their Venmo account to either your app (if you have one) or through your website. The next step is checkout. Customers can pay with the funds they have in Venmo or with another linked funding source. Alternatively, you can display them a QR code that they can scan and pay that way.
Is Venmo safe for business?The short answer is yes. Venmo is safe for businesses because it uses standard encryption to keep your data. The encryption monitors your account and detects suspicious activity. Additionally, if you look closely at the address bar you’ll see that it has an “s” after “http” which means it has an SSL encryption. Buyers using Venmo are protected in two ways:
Venmo business accounts are free, but be mindful of fees charged for the following services:
It’s important to mention that business and personal accounts don’t share the same transfer limits. Business profiles can have different transfer limits depending on if they’re verified or not. If you haven’t completed the identity verification, you’d have a weekly payment limit of $2,499 and a bank transfer limit of $999. However, if you finished the identification process you will have increased limits. Your weekly payment limits in this case would be $24,999 and the bank transfer limit would be $49,999. There’s also a limit per transaction of $10,000 for instant transfers to your debit card and $25,000 for instant transfers to your bank. Is Venmo a Good Option for Merchants?There are a number of different mobile payment options available to your business, but only one option gives you the security and control to keep your funds safe: a merchant account. While apps like Venmo or Google Wallet can be useful tools for those who don’t need much from their payment processor, these services just aren’t designed to meet the needs of business owners. A merchant account provides businesses with a unique, customizable experience that can be adapted to fit your needs while still being simple enough for employees who are new on the job. Unlike Venmo, a merchant account integrates with your online shopping cart and third-party software, processes recurring billing, supports Level II and Level III processing, and has advanced invoicing capabilities. A merchant account is good for processing a high volume of transactions and does not limit transfers to your bank account. If your business requires these functionalities, consider getting a merchant account. Final ThoughtsVenmo for business can be a good payment option, though it is not the optimal payment solution. It has its limitations. Venmo has its privacy issues and It does not provide the full capabilities a merchant account provides, and it’s marked by a few controversies regarding privacy issues. Can I accept Venmo payments for my business?Venmo isn't just for peer-to-peer payments; small businesses can use it as a payment method too. If you already accept PayPal, you can accept Venmo payments at no extra charge. Venmo offers various benefits for businesses, including speedy processing and transaction security.
How do I receive money from Venmo to my business account?Sending & Requesting Money. Tap the Pay/Request button at the bottom of your screen.. Tap and hold when selecting the first recipient (you'll see a checkmark once they're selected). Search for and select your remaining payment partners.. Tap "Next" at the bottom of your screen.. Enter an amount and payment note.. How do I receive a Venmo payment?You can receive money on Venmo after you connect a bank or card with your account. After you add a bank or card, you will receive money when someone sends a payment to your Venmo username. You do not have to formally accept the payment to receive money on Venmo.
How do I set up a business account on Venmo?To get started in the Venmo app or on the web:. Choose the “Business” option, then "Get started". Enter your mobile phone number and tap "Send code". Enter the code sent to your phone.. After verifying your phone number, enter your legal name and the email & password you want to use on Venmo.. |