VENMO: Information that can save your business!

Venmo is a peer-to-peer (p2p) payment app, making it easy to send money to and from friends and family. It's widely used, you can send money by whichever payment method you want, and recipients get funds instantly. However, it was never really designed to be a payment method for businesses! 

Negative Points to Using Venmo Apps:

• Payments are public by default
• Can't cancel payments
• No international transactions
• Popular with scammers

Besides, sending money to someone using a credit card, costs that person 3% fee. You can avoid this by paying with a debit card, bank account, or your Venmo balance. Your not really saving any money VS a legitimate merchant processing company like Merchant Processing Solutions! 

If you receive money, you MUST move it quickly to your bank account as Venmo is not FDIC Insured so if your money disappears from your Venmo account for whatever reason, unlike your bank, you are NOT protected! ! 

There are two options to transfer your money to your bank account: 

• Venmo to your bank account fast: Instant transfers have a 1.75% fee, with a $0.25 minimum and a $25 maximum. 

• Venmo to your bank account that takes one to three business days to settle is FREE! 

Although designed for personal to personal payments some folks have started using Venmo to get paid for business products and services. There are multiple reasons why you should NOT use it for business.

1. Your customer needs to also get set up as a Venmo user PRIOR to any transaction.
2. Your money is NOT secure! Venmo offers NO chargeback protection or fraud protection! 
3. The buyer has NO protection if they send the money to fraudsters nor can they do a chargeback should they NOT get their product or service.
4. Also all the Negative Points from above on the P2P Venmo account

Many people I have spoken to, tell me they use Venmo like cash and feel they do not have to report their earnings to the IRS. In July of the year, the IRS changed the law and now if you collect $600 or more for the sales of goods and services through a payment services company you MUST provide your Tax Info and you will be sent a 1099 for all sales $600 and higher. If you do not submit your tax info for yourself or your business, the payment services company (i.e. Venmo) is required to withhold 24% of those payments and send it to the IRS for backup withholding. This is required by the IRS and helps to ensure that any applicable taxes due on these payments are paid.

If you want to get paid for your products and services LEGALLY, please give Merchant Processing Solutions a call so we can help you determine which product gives you the best solution for your business! 

Merchant Processing Solutions Inc.

954-938-2420

Food Truck Merchant Services Experts!

Attention Food Truck Owners! 

The three states with the most food trucks in the United States are California - 883, Texas - 744, and Florida with 725 respectively. There is one food truck for every 37.7 persons in these states!!

Average food truck revenues typically fall between $250,000 and $500,000 if they are still operating after 3 years. The food truck industry is worth $1.2 billion and is expected to grow 3-5% in 2023.

The food truck industry's market size has grown by an average of 4.9% each year since 2018. That's a 25% increase! The demand for food trucks predicts this industry to grow even more in the future.

As of May 2023, the industry's market value is $1.49 billion. That's up from 2020's $1.1 billion.

With everything that is great about this unique industry, 60% of the food trucks fail the first year! That number jumps to 45% within the first five years and 65% for the first decade. But if you were in the restaurant industry, you have it even worse! The same 60% of the restaurants also fail in the first year, but 80% fail within the first five years. Operating a successful food truck is hard but not impossible!So lets understand why! 

Merchant Processing Solutions has worked with Food Trucks and Restaurants in the South Florida Business Community and knows what it takes to have a successful Food Truck Business! 

Here are 5 Ways to Avoid Mistakes and Fail in Your Food Truck Business!! 

• Know Yourself:
• What value will you bring to this business? 
• Are you the chef? 
• Financial person? 
• What is your position and job with this business?

• Know Your Product or Service:
• What are you selling?  WHY? Who does it benefit? What makes your product or service BETTER than your competitors?
• Is there profitability doing this business?
• Do not just buy the cheapest equipment! Research the options your truck needs to be successful and grow. 
• Make sure you get set up to accept CREDIT CARD PROCESSING with Merchant Processing Solutions, we know how to get you set up and be successful! 

• Knowing Your Audience:
• Who are you looking to sell to, why?
• What are the benefits that your target audience wants or needs?
• Can you deliver the product or service easily to that target market?
• Can you effectively meet the demand of your audience?

• Know where you’re going to sell your product or service from the food truck:
• Research the licenses required in your city/county/state. 
• Research where there is a large percentage of your target market and see what locations are available PRIOR to investing your money! You may have a great idea for food, know your target market, get everything ready to only find there is NO WHERE FOR YOU TO PARK AND SELL! 
• Without this step, you can quickly become unprofitable.

Please give Merchant Processing Solutions a call today for a free consultation! 

Merchant Processing Solutions Inc.

954-938-2420