The Venmo app, owned by PayPal, was built for peer-to-peer payments, for sending and receiving money between friends and family. Its personal accounts app is not designed as an online payment solution for small businesses.
Claudia Mosley & Yamilet Strauss, owners of Merchant Processing Solutions talk about Venmo!
Venmo has two types of products:
Venmo Family & Friends:
- Venmo recommends you make VERY SURE you are sending your payment to the correct "John Smith"! The person has to also have a VENMO account to participate in the money transaction. Once your payment is sent, there is no getting it back if you sent to the wrong person.
- Sending "peer to peer", means you trust that person. You send the money and it goes into the person's bank account. There is no fee to do this type of transaction.
- However, Venmo strictly prohibits using Venmo Family & Friends for any business dealings! See below:
The Venmo app was built for peer-to-peer payments, i.e. for sending and receiving money between friends and family. Its personal accounts are not designed as an online payment solution for small businesses.
Venmo Business:
- Requires the business to set up a separate "business" profile.
- Merchant is charged 1.90% and $.10 per transaction and 1.75% for daily bank transfers! (It is free for 3-5 days transfer hold.) Your total cost per transaction could be 3.65% and $.10! (This is much higher than Merchant Processing Solutions)
- All transfers are reviewed and could be declined, delayed, or blocked if they identify any issue. Reviews may result in your funds being frozen or removed from your account indefinitely!
- All support is via Chat or email; no live contact. You are on your OWN!
- Chargeback issues
- Payment issues
- You will still get a 1099 for IRS Reporting letter at the end of the year.
- Lastly, your customer, paying with a credit card will be charged 3% to process as well.
VENMO is actually taking 6.65% on each transaction!
Nothing in this world is free or even cheap! There is ALWAYS a gimmick!
But NOT with Merchant Processing Solutions! We are transparent with low pricing and NO contract. Call us BEFORE using VENMO, we can save you money and headaches!
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