Venmo is more than just a way for your friends to pay you back for that awkward splurge on avocado toast last week. It’s also a payment service that has grown in popularity with businesses, especially those with a millennial customer base. Thanks to the ease of use and social media integration, businesses like restaurants, bars and other establishments that cater to younger clientele can incorporate Venmo as a go-to payment option for their customers. If you’re thinking about using Venmo as an alternative method of receiving payments from customers or employees, you should know there are some Venmo business fees involved. In this post, we’ll cover the details about these fees and how they might impact your company.
What are the Venmo business fees?
Venmo is a social payments app that allows users to send money to each other, friends or family members. It also lets people pay businesses. This is the mode of payment that we’re focused on in this article. In order to run this kind of business, Venmo charges businesses a fee for each transaction. This is called the Venmo business fees.
Venmo receiving fee
The first fee we’ll cover is the Venmo receiving fee. As we mentioned above, with the receive feature, you can set up a Venmo account to receive payments from customers. This can be useful for a number of situations. You might use Venmo if you are a food truck or a brick-and-mortar store that wants to let customers pay with their smartphones. The catch is that if you want to let customers pay with Venmo, you’ll have to pay a fee. This fee is 2.9% of the total payment. So if a customer pays you $100, you’ll receive $97. This Venmo receiving fee is different from the other fees we’ll discuss in this article, because it’s charged to the business receiving the payment, not the person making the payment.
Venmo transfer fee
Venmo also charges a transfer fee when money is moved from one Venmo user to another. In this case, the person making the payment pays the fee. Compared the receiving fee, the transfer fee is pretty low, at only 0.5%. So if you transfer $100 from one Venmo account to another, the person making the payment will only receive $99.50. This fee typically applies when you’re transferring money to a friend. You may want to use this feature if you sell something on Venmo and want to move the money to your friend immediately. In this case, your friend can cash out right away, and you won’t have to wait for Venmo to transfer the money to your account.
Venmo processing fee
The last fee we’ll cover is the Venmo processing fee. This fee is charged whenever you accept a Venmo payment. The good news is that this fee is paid by the customer making the payment. In general, the processing fee is only charged to businesses when the transaction involves a credit or debit card. So if you’re accepting only Venmo payments, you won’t have to pay this fee. The processing fee amount varies depending on the amount of the payment. The processing fee is typically 2.9% of the total payment. So if you accept a Venmo payment for $100, you’ll receive $97. If a customer decides to pay with a credit or debit card, though, you’ll have to pay an additional 2.9% fee on top of that.
Who pays the Venmo business fees?
When you look at the Venmo business fees, you might assume that the person making the payment is paying the fees. However, that’s not always the case. The receiving and processing fees are charged to the business that accepts the payment, not the person who makes it. In most cases, the fees are passed on to the customer. However, the transfer fee is typically paid by the person making the payment. This is because it’s not technically a payment. It’s a transfer of money from one Venmo account to another.
Final thoughts
Venmo is a great tool for millennials who prefer digital payment methods over other payment types. It has become increasingly popular with businesses because it’s easier for customers to use than cash or credit cards. In addition to being convenient, Venmo is also free for customers to use. If merchants want to accept Venmo payments for goods or services, they must pay a fee. If a business uses Venmo to receive payment from customers, the fees vary depending on the amount of the payment.