Can You Use Venmo for Business? A Short SBG Guide
By Danica Jovic
June 19, 2023
Cash is slowly disappearing from the US market, and the way customers interact with merchants and complete transactions is changing. Adapting to the new reality can be quite a challenge for small businesses, especially when competing against well-funded large companies.
However, instruments such as Venmo for Business help small enterprises keep up with changes and consumer trends, giving them the chance to provide a better experience to their clients. So, can you use Venmo for your business? Yes – and you should! In this guide, we’ll tell you more about this incredible tool.
What is Venmo?
Launched in 2009, Venmo is certainly not among the most recent startups around. However, the company has been restlessly developing since its launch and established itself as one of the most progressive payment getaways around, prompting PayPal to acquire it in 2013.
What sets Venmo apart from other merchant services is that it retains its social aspect. The company, which was originally envisioned as a platform for musicians to sell songs or merchandise at their gigs, is today accepted by over 2 million merchants in the US.
Venmo is an innovative merchant solution that employs peer-to-peer technologies for online financial transactions. More recently, the platform has started to allow users to hold a balance on their account, while also introducing business features such as invoicing options.
Venmo Personal vs. Business Account: What’s The Difference?
Today, over 83 million people have downloaded the Venmo app and are using it for handling payments. Whether you have used the platform before or not, it is important to understand the difference between Venmo’s personal and business accounts.
A Venmo personal profile gives people a simple and secure way to make payments to their friends and peers. Unlike other payment services, Venmo proposes a highly interactive, social network-like platform that allows users to send and receive transactions immediately, split a bill, or share necessities.
Venmo for Business is not so dissimilar to a Personal account, and if you have been using Venmo for a while, you will be instantly familiar with its interface. However, it also includes features purposely designed with the needs of businesses in mind, including:
- Online sales
- Point of sale transactions
- Touchless payments
- Venmo credit card transactions
- Tax considerations
- Venmo invoicing and receipts options
- Safe and trusted transactions
Can You Use Venmo For Your Small Business?
Small business banking can be tricky, so many people look for an easy-to-use, accessible, and intuitive solution. Here is where Venmo for Business can help.
To begin using Venmo for your small business, all you need to do is set up a business account. You can then start accepting Venmo business transactions – regardless of whether you are running a brick-and-mortar store or an eCommerce business.
Venmo for Small Businesses: What To Expect
No matter what type of venture you are running, choosing the right merchant service is just as important as selecting a good checking account for your business. Depending on your merchant service, you will build a different relationship with your customers and benefit from different features.
From providing low transaction fees to offering invoicing and supply purchasing, Venmo is considered by many to be the best option for most businesses. But is it the right one for you? Let’s take a closer look.
Venmo Business Fees
Merchant services are extremely helpful for small businesses, but they come at a cost. With that in mind, business owners need to find the right compromise between cost and functionalities.
While Venmo for Business isn’t free, the cost of this service is designed to fit any small business’s budget:
- It allows payments by credit card, debit card, and bank transfer.
- There is no set-up fee.
- There are no monthly fees.
- There are no fees associated with online purchases and sending money back to users.
- Credit card transfer fees are 3%.
- Debit card transaction fees are 0%.
- Seller fees are 1.9% + $0.10.
- The transfer limit for Venmo’s person-to-person transfers is $4,999.99 per week.
How Do I Use My Venmo Business Account?
So, how do businesses use Venmo? Once you are sure that the fees involved with a business Venmo account work for you, it is time to look at the ways in which you can use your account. These include:
- Online stores can run most business transactions through Venmo.
- Your store can accept online orders.
- It can also offer touchless business transactions.
- You can use Venmo in your store by pairing it with an approved POS system.
Venmo also offers merchants a QR Kit that allows them to use QR technology for payments, thus streamlining customers’ and suppliers’ transactions.
Setting Up a Venmo Account for Business: An Overview
If you are ready to set up your Venmo business account, here’s a step-by-step guide on how to do it and start accepting Venmo transactions:
- Find and download the Venmo for Business app.
- Verify your business through the One Time Passcode system.
- Accept the terms and conditions.
- Create a business profile by tapping on the profile picture.
- Add details about your business, including brand customization, logos, and products and services offered.
If you already have a personal Venmo account, you can add a business profile by simply navigating to the “Create Business Profile” button and following the instructions.
As with all good merchant services, Venmo is accessible via an Android/iOS app or your favorite web browser.
Benefits of Using Venmo For Your Business
When choosing between Venmo and other merchant systems, you might need to draw a list of the pros and cons of each. Start from these benefits and features of Venmo for business:
- Fees are competitive, and there is no cost for debit cards, setting up your account, and completing online purchases
- Venmo allows for quick money transfers.
- The weekly transaction limit is $4,999.99 for person-to-person transfers, while combined weekly spending limits are $6,999.99.
- If you have used Venmo before, you will be familiar with the interface and functionalities.
- The software makes completing financial transactions easy and engaging.
- Venmo is one of the few merchant payment services that fully support cryptocurrencies.
Of course, Venmo might not be right for all businesses, and you should keep in mind that transaction limits can affect your business’s operations. Plus, Venmo is only available in the US, and not all companies will accept payments made through this system.
Final Words
Venmo is one of the most popular merchant services in the US. It provides easy, intuitive, and functional solutions for small businesses while keeping fees competitive. While Venmo for business might not be the ideal choice for all businesses, it is certainly appreciated by a massive number of business owners across the US, and for a good reason. If the weekly transaction limits are not a problem, we can heartily recommend this service to any small business owner.