By p2pbusinesspayments September 9, 2025
Venmo isn’t just for splitting dinner bills with friends anymore – it’s also a powerful tool for U.S. entrepreneurs. Venmo for Business allows small businesses, freelancers, and e-commerce vendors to accept payments quickly and conveniently through the popular Venmo app.
In this comprehensive guide, we’ll explain what Venmo for Business is, how to set it up, what it costs, and how it compares to other payment platforms. We’ll also cover security features and answer frequently asked questions. By the end, you’ll know how to use Venmo for Business the smart way to get paid faster and keep your customers happy.
What Is Venmo for Business?
Venmo for Business refers to Venmo’s business profiles – a separate profile linked to your personal Venmo account that is designed for accepting payments for goods and services. In essence, it transforms the Venmo app (traditionally a peer-to-peer payment platform) into a tool for commerce.
Businesses of all sizes – from solo freelancers to retail shops – can create a Venmo business profile to collect customer payments.
Key Characteristics of Venmo Business Profiles:
- U.S.-Only Service: Venmo is currently available only in the United States. You must have a U.S. mobile number and bank account to use Venmo, and this applies to business profiles as well. (International customers cannot pay you on Venmo, so it’s focused on U.S.-based transactions.)
- Linked to Personal Account: You can’t sign up for a Venmo business profile without a personal Venmo account. The business profile is linked to your personal account and managed from the same app (you can toggle between personal and business). This means if you’re new to Venmo, you’ll create a personal account first and then add a business profile.
- For Goods and Services: Unlike personal Venmo, which is intended for friends and family, a business profile is intended for commercial transactions. Venmo explicitly requires businesses to use a business profile for selling products or services (using a personal account for business payments is against Venmo’s terms).
Business profiles come with features tailored to merchants, like the ability to list a business name and category, display a logo or photo, and receive payments publicly in the social feed for marketing exposure.
Venmo business profiles were introduced to give entrepreneurs a simple, mobile-friendly way to get paid. Over 2 million merchants now use Venmo to receive customer payments online or in-store. If your customers are among the 90+ million Venmo users, offering Venmo as a payment option can make their checkout experience easier and more familiar.
Benefits of Using Venmo for Your Business
Why might you consider using Venmo for Business? Here are some major benefits that appeal to small business owners and independent professionals:
- Ease of Use: Venmo is known for its simple, user-friendly app. Customers can pay you in seconds using their phone – they just tap “Pay” and send money to your business profile.
There’s no need for you to invest in expensive point-of-sale hardware or complex e-commerce systems if you don’t need them. This simplicity is great for pop-up shops, market vendors, or any business that wants a quick, contactless way to accept payments. - No Monthly Fees: Venmo does not charge any setup fees or monthly subscription fees for business profiles. You only pay a small transaction fee when you receive a payment (more on that in the Fees section).
This makes Venmo an attractive option for businesses that have sporadic sales or are just starting out – you won’t pay anything if you don’t make a sale. - Low Transaction Fees: The per-transaction fee is relatively low compared to many credit card processors. Venmo charges 1.9% + $0.10 for most business transactions, which is cheaper than typical merchant credit card rates (often around 2.9% + 30¢).
In fact, Venmo’s 1.9% fee is lower than Square’s 2.6% + 10¢ for in-person card swipes or Stripe’s ~2.7% + a few cents for online payments. This can save you money, especially on smaller transactions. - Popular with Younger Customers: Venmo is extremely popular with younger generations and a staple of many Millennials and Gen Z consumers’ lives. By accepting Venmo, you cater to a broad customer base that prefers digital wallets over cash or cards.
For example, customers may feel more comfortable using Venmo than typing in card details, as they trust Venmo’s interface and don’t have to share card info with the merchant. - Social Media Style Marketing: One unique aspect of Venmo is its social feed. When a customer pays you (and if they don’t mark it private), the transaction can appear in Venmo’s social feed where their friends see a note like “John paid CoffeeCo ☕ for a latte.”
This acts as free word-of-mouth advertising for your business. Essentially, each public payment is a subtle endorsement of your business to the payer’s network. This “digital word of mouth” can increase your visibility and attract new customers. - Instant Transfers and Fast Access to Funds: Venmo allows you to access your money quickly. Payments you receive are added to your Venmo balance immediately. From there, you can either use that balance to pay others or transfer it to your bank.
Venmo offers an Instant Transfer option that sends funds to your bank within minutes for a small 1.75% fee. Otherwise, standard bank transfers are free and take 1–3 business days. The ability to do instant payouts can be a lifesaver for cash flow if you need funds the same day. - Built-in Records and Receipts: Every Venmo business transaction comes with a digital receipt and is logged in your transaction history. Both you and the customer can easily access the details of the payment in-app.
This simplifies bookkeeping – you can download Venmo statements and have a clear record of your sales for accounting or tax purposes. It also eliminates the need for paper receipts in many cases. - Tipping and Other Features: Venmo business profiles include some extra features tailored for sellers. For instance, you can enable tipping, which prompts customers to add a tip (15%, 20%, 25% or custom) during checkout.
This is great for service providers or food businesses where tips are common. Venmo also allows you to issue refunds directly from the app if needed, and if you qualify, certain purchases may be covered by Venmo’s Purchase Protection for the buyer (adding trust for your customers).
In short, Venmo for Business provides a convenient, low-cost, and social way to get paid, which can especially benefit U.S. small businesses, sole proprietors, and side-hustlers. It’s not a full replacement for a robust payment processor in every scenario, but it excels at what it’s designed for: easy peer-to-business payments.
Who Can Use Venmo for Business?
Venmo business profiles are versatile and can serve a wide range of U.S.-based business types. Here are a few examples of who might find Venmo for Business useful:
- Brick-and-Mortar Small Businesses: Boutique shops, cafes, food trucks, salons, or market vendors can use Venmo as a quick checkout option. If you have a physical location or sell at pop-up events, customers can scan your QR code or find your business profile to pay.
This saves time at the register and appeals to customers who prefer contactless payment. For instance, rather than investing in a full POS system for a farmers’ market stand, a vendor might simply display a Venmo QR code for payments. - Freelancers and Service Providers: Freelancers, consultants, and gig workers (tutors, photographers, fitness instructors, etc.) often need a simple way to invoice or collect payments from clients.
Venmo for Business can work like an informal invoicing system – you can have clients pay your business profile, and each transaction is logged with a description.
Payment is instant, which means no waiting for checks. In fact, many businesses find Venmo faster and more convenient than sending checks or bank payments, especially when dealing with younger freelancers or clients who want fast payouts. - E-commerce Sellers and Online Businesses: If you sell products online (via your own website or even through social media), Venmo can be integrated as a payment method at checkout.
PayPal, which owns Venmo, has made it possible for merchants to add a “Pay with Venmo” button on online stores – when customers tap it on mobile, it opens their Venmo app to complete payment.
This gives online shoppers a familiar one-click way to pay (especially useful if they have Venmo balances or prefer not to enter card info). It can reduce cart abandonment among Venmo’s user base.
Keep in mind that to add Venmo on your website, you’ll typically use PayPal Checkout integration (there may be slightly different fees for those online transactions, which we’ll cover below). - Sole Proprietors and Side Hustles: Individuals who run side businesses – like someone who bakes custom cakes at home or a handyman offering local services – can benefit from Venmo’s casual nature.
It’s less formal than setting up a merchant account or sending a formal invoice, yet it provides a clear record of payments. As long as you are reporting your income properly, using Venmo can be an easy way to manage those transactions.
(Remember, even if it’s a side hustle, for tax purposes business income via Venmo is taxable and should be reported as such.) - Charities and Community Clubs: Venmo also offers Charity Profiles, but many small community organizations or clubs could simply use a business profile if they’re collecting dues, donations, or fundraiser money. It provides transparency (everyone can see the transactions if public) and convenience for members to pay from their phones.
In summary, Venmo for Business is ideal for U.S. businesses that want a lightweight, mobile-friendly payment solution. Whether you run a pop-up craft shop or do freelance graphic design, if your customers use Venmo, it’s worth considering.
Just note that you must be selling legitimate goods or services – Venmo is not for personal loans or any prohibited activities, and you should adhere to their acceptable use policies.
How to Set Up Venmo for Business (Step-by-Step)
Getting started with Venmo for Business is quick and straightforward. You don’t need any special paperwork beyond what’s required to verify your identity and business details. Here’s how to set up your Venmo business profile:
- Download the Venmo App: If you don’t already have the Venmo app on your smartphone, download it from the Apple App Store or Google Play.
Venmo is primarily an app-based service (while you can sign up on the website, most features are only in the app). Remember, it’s only available to users in the U.S., so you’ll need a U.S. mobile number for verification. The app itself is free to download. - Create a Personal Venmo Account: Open the app and tap “Create Account.” Since a personal account is required before you can have a business profile, Venmo will guide you through setting up your personal profile first.
You’ll be asked if you plan to use Venmo for Personal, Teen, or Business – choose “Business” (don’t worry, this will still create your personal account in tandem). Enter your mobile phone number and verify it with the code sent via text.
Then provide your legal name, email, and a password for your Venmo login. You’ll also have to agree to Venmo’s User Agreement and Privacy Policy. Once your personal account is created, Venmo will proceed to set up the business profile portion. - Create Your Business Profile: Now it’s time to input your business details. Venmo will prompt you for information about your business, such as: business name and username, the category or type of business, and a brief description of what you do.
You can also add a profile picture or logo that will be visible to customers – a professional-looking photo helps make your business profile look legit. Venmo will ask whether your business is a sole proprietorship (using your Social Security Number) or a registered business (with an EIN).
Provide the necessary identification info (SSN or EIN) for tax purposes. You’ll also need to supply a business address (or at least city and state) and optionally a phone number and links to your website or social media.
Once you’ve filled in the details, you can preview your business profile to see how it looks to customers, then publish it. (Note: You can only create one business profile per personal account, so choose your business name/username carefully – you won’t be able to make multiple business profiles under one login.) - (Optional) Turn on Tipping: After setting up the profile, Venmo may show a prompt asking if you want to enable tipping. If tipping makes sense for your business (e.g. you run a service or hospitality business where tips are common), toggle this on.
Venmo’s tipping feature allows customers to easily add a tip on top of their payment. The app provides preset tip percentages (15%, 20%, 25%) or a custom amount. This can boost your earnings if customers feel generous.
Just note that Venmo’s transaction fee also applies to the tip amount – for example, if someone pays $10 + $2 tip = $12, you’ll pay 1.9% + $0.10 on the $12 total. You can turn tipping on or off later in your business profile settings as well. - (Optional) Order a QR Code Kit: Venmo offers a free QR code kit to business profile users to help facilitate in-person payments. This kit includes a tabletop display with your unique Venmo QR code, some stickers, and even a lanyard card with the code.
It’s a handy way to let customers scan and pay you without needing to search for your username. You can order the first kit for free right from your business profile page in the app.
(Additional kits, if needed, cost about $14.99 each after the first one.) Even if you don’t get the physical kit, you can always pull up your QR code in the Venmo app and print it out yourself to display at your checkout counter. This step isn’t mandatory, but it’s useful for brick-and-mortar scenarios. - Link a Bank Account or Card: Next, you’ll want to link a bank account (or debit card) to your Venmo profile so you can withdraw the money you earn.
If you already had a personal Venmo account with a bank linked, and your business is a sole proprietorship under your SSN, you’re actually allowed to use the same linked bank account for both personal and business profiles.
However, if your business is a registered entity separate from you, it’s best practice (and sometimes required) to use a separate business bank account for the Venmo business profile.
In the Venmo app, go to Settings > Payment Methods under your business profile, then choose “Add a bank or card.” Follow the prompts to either instantly verify your bank via Plaid (you’ll log in to your bank) or manually verify by entering account and routing numbers.
For manual verification, Venmo might make two small deposits (like $0.1 and $0.2) for you to confirm, a process that can take a day or two. If linking a card, just input the card number, expiration, CVV, etc.. Once your bank or card is linked, you’ll be able to transfer out your Venmo balance.
That’s it! Your Venmo for Business setup should now be complete. You can toggle between your personal and business profiles by tapping your profile name in the app and switching to the business profile whenever you need to accept a payment as your business.
Pro tip: Since Venmo has a social element, you might want to adjust the privacy settings of your transactions. Some businesses keep payments public to leverage the social feed for marketing, whereas others make them private for customer privacy.
The default for business profiles is often public (which can help with discovery and word-of-mouth), but you can change a specific payment to private if a customer requests confidentiality. Also, consider adding a short note or emoji to each transaction description to give it personality (e.g., a coffee shop might include a coffee emoji in each payment note).
How to Accept Payments with Venmo Business
Once your profile is set up, using Venmo for payments is very flexible. Here are the various ways you can accept customer payments using your Venmo business account:
- In-App Payments by Username/Handle: Customers who have Venmo can simply find your business profile in the app and pay you like they would pay a friend. They can search for your business name or @username.
(Venmo lets users filter search results to show businesses only, making it easier to find your profile.) When your profile comes up, they tap “Pay”, enter the amount and a note, and send the payment.
You’ll get notified instantly in your Venmo app that you’ve been paid. This method is straightforward for situations like services or invoices – you can even send the customer a Venmo payment request from your business profile if you want to initiate the charge. - Scanning Your QR Code (In Person): For in-person transactions, QR codes are a quick solution. Display your Venmo QR code at your checkout or on your event booth.
A customer can open their Venmo app, tap the Scan button, and scan your code to go directly to your business profile and pay. This avoids any confusion over searching names (especially useful if your business name is common).
If you have the QR kit or have printed the code, customers can self-scan; alternatively, you can pull up your code on your phone and show it to the customer to scan. This contactless payment method means the customer doesn’t need cash or a card on hand – just their phone. - Venmo on Your Online Store: If you have an e-commerce website, you can add Venmo as a payment option at checkout. This usually works via PayPal Checkout integration. Merchants who accept PayPal can often enable a Venmo button as well.
When a mobile shopper selects Venmo on checkout, it will either launch their Venmo app to confirm payment (on mobile browsers) or show a QR code that they can scan with their phone (if they’re on desktop).
The payment goes through just like a PayPal transaction, and you receive the money into your PayPal/Venmo merchant account.
Keep in mind that payments processed through a website will incur a different fee (the “Pay with Venmo” online fee, typically 3.49% + $0.49, since it’s essentially an online card payment via PayPal’s system).
Still, offering Venmo at checkout can reduce friction for the millions of U.S. shoppers who prefer it. - Tap to Pay (Contactless Cards): One of the newer features is Venmo’s Tap to Pay on mobile. This allows you to accept a contactless credit or debit card payment, or mobile wallets like Apple Pay/Google Pay, directly through your phone – no card reader needed.
Essentially, your phone becomes a payment terminal. To use this, you need a compatible smartphone with NFC. In the Venmo app, you tap “☰ (Menu) > Business Profile > Charge > Tap to Pay,” enter the amount, then hold your phone out.
The customer taps their contactless card or phone (with a digital wallet) to your phone, and it processes the payment. The customer doesn’t even need a Venmo account for this method; it charges their card as a normal transaction.
The fee for Tap to Pay is 2.29% + $0.09 per transaction – a bit higher than regular Venmo payments, but still competitive for card-present transactions.
This feature is excellent if you want to accept cards but don’t want to invest in card reader hardware. After the transaction, you can send the customer a receipt via email right from the app.
No matter which method is used, funds from customers will appear in your Venmo business balance almost instantly. You can then choose to leave the money in Venmo (to use for your own payouts or expenses) or transfer it to your bank.
It’s a good practice to get familiar with the Venmo app interface and perhaps do a couple of test transactions (even if it’s just you paying your business profile $1 from a friend’s account) to see how the process looks on both ends. This way, you can confidently guide customers if they’re unsure how to pay you via Venmo.
Venmo for Business Fees and Costs
One of the most important considerations for any payment method are the fees. The good news is that Venmo’s fee structure is simple and there are no hidden fees or monthly charges for business profiles. Here’s a breakdown of what you can expect to pay when using Venmo for Business:
| Fee Type | Amount |
|---|---|
| Transaction Fee (Venmo-to-Venmo) | 1.9% + $0.10 of the payment amount. This applies to payments sent from a customer’s Venmo account or linked bank/debit card. It’s automatically deducted from what you receive. Example: for a $50 payment, the fee would be $0.95 + $0.10 = $1.05, so you’d net $48.95. |
| Contactless “Tap to Pay” Fee | 2.29% + $0.09 of the payment amount. This slightly higher fee applies when you accept an in-person payment via Tap to Pay on your phone (a customer’s contactless credit card or digital wallet). |
| Online Checkout (Pay with Venmo) | 3.49% + $0.49 per transaction. This is the rate if you’ve integrated Venmo as a payment button on an online store via PayPal. Essentially, it’s the same as PayPal’s online processing fee. (Note: If you run an online business and want to use Venmo, you might also consider standard PayPal transactions – PayPal’s typical e-commerce fee is ~2.99% + $0.49, but that doesn’t directly allow Venmo payments unless enabled.) |
| Credit Card Payment (Venmo P2P) | 3% (for personal accounts). This fee is actually paid by personal Venmo users when they send money to friends using a credit card. Importantly, Venmo waives this 3% fee for customers who pay a business profile – meaning your customer isn’t penalized for using a credit card to pay you. Instead, you just pay the standard 1.9% + $0.10. So, you can advertise that customers can use their credit card via Venmo with no extra charge to them. |
| Instant Transfer Fee | 1.75% (of the amount; $0.25 minimum, $25 maximum per transfer). This is optional – it’s the fee to instantly transfer your Venmo funds to your bank account or debit card, typically within minutes. If you can wait 1-3 days, the standard bank transfer is free. |
| Setup or Monthly Fee | $0.00. There are no setup fees, monthly fees, or annual fees for having a Venmo business profile. You only incur costs when you actually receive payments. |
As shown above, the primary cost of using Venmo for Business is the transaction fee on payments you receive. At 1.9% + 10 cents for most transactions, this fee is in line with (or lower than) many competitors and is the price for the convenience of Venmo’s service.
Venmo uses these fees to cover operating costs and provide buyer/seller protections. Note that Venmo will deduct the fee before the money posts to your account – you don’t get charged separately later. You’ll see the net amount in your balance.
A couple of additional notes on fees:
- No Fees for Buyers: Your customers do not pay any Venmo fees when they send money to your business profile. This is important – the fee is always on the receiving side, much like traditional merchant processing.
So you shouldn’t surcharge customers for using Venmo (and indeed Venmo’s user agreement likely prohibits passing the fee to the buyer explicitly).
From the customer’s perspective, paying a business on Venmo is free (even if they use a credit card, which normally would cost them 3% fee on a personal payment – Venmo exempts business transactions from that). - Refunds and Fees: If you refund a customer for a purchase, Venmo will not return the processing fee to you. The 1.9% + $0.10 fee is non-refundable.
For example, if you received a $100 payment (fee $1.90+$0.10) and then issued a full refund, the customer gets $100 back, and you have effectively paid $2.00 in fees for that transaction. This is standard practice in payment processing (most processors keep the fees on refunds). - Custom Rates for High Volume: If you are a larger business processing a very high volume of sales on Venmo, there are indications that Venmo (via PayPal) can offer custom pricing or merchant rates.
Typically, small businesses won’t qualify for this unless you have a really significant monthly volume. But it’s good to know it exists. For most small businesses, the flat 1.9%+$0.10 is the rate. - Comparing Cost to Other Methods: To put fees in context, consider alternatives: Traditional credit card merchant accounts often charge around 2.6%–3% plus $0.10–$0.30 per transaction (and sometimes additional monthly fees).
Services like Cash App for Business charge about 2.6% + $0.15 per transaction (and 3% if your customer pays you with a credit card via Cash App). PayPal charges around 2.99% + a fixed fee (roughly $0.49) for online transactions, and around 2.7% for in-person QR code payments.
Zelle, on the other hand, doesn’t charge fees itself (it’s free for peer-to-peer), but it’s not widely set up for business use and offers no purchase protection – some banks may even charge for Zelle with business accounts.
Square charges 2.6% + 10¢ for in-person swipes and 3.5% + 15¢ for keyed or online entries. By these comparisons, Venmo’s fees are very competitive, especially given the social media exposure you get as a bonus.
Security and Privacy: Is Venmo Safe for Business Transactions?
When money is changing hands, security is paramount. You may wonder if Venmo is safe to use for your business and what protections are in place for you and your customers.
The short answer is that Venmo has a number of security measures and encryption protocols to keep transactions secure, but you should still practice standard precautions as a business owner.
- Data Encryption: Venmo uses encryption to protect your account information and financial data. This means that when data is transmitted (such as your customers’ payment details or your bank account info), it’s encrypted so that third parties can’t easily intercept and read it.
On Venmo’s website and app, you’ll see the lock icon or “https” which indicates encryption is active. Venmo also stores user information on secure servers. These measures are similar to what banks and major payment processors use. - Login Security: Venmo accounts are password-protected, and you can enable additional security like PIN codes or fingerprint/Face ID login on your Venmo app.
As a best practice, use a strong unique password for your Venmo account and enable two-factor authentication if available.
Venmo will never ask you for your password or verification codes via email or text – if you get such a request, it’s likely a phishing attempt.
Always be vigilant about not sharing your login credentials. Since your business profile is tied to your personal login, protecting that login is crucial. - Monitoring and Fraud Detection: Venmo monitors account activity to identify unauthorized transactions or unusual behavior. If something suspicious is detected, Venmo may freeze transactions or reach out to confirm activity.
As a business, you should also keep an eye on your account. If you ever notice a payment you didn’t expect or any irregular withdrawals, contact Venmo support immediately. The Venmo Support team is available via in-app chat, email, or phone for any security concerns. - Venmo Purchase Protection: One big difference between using a Venmo personal account and a business profile is eligibility for Purchase Protection.
Venmo’s Purchase Protection is a program that can protect buyers (and sometimes sellers) when a payment is for goods or services and something goes wrong (for example, an item wasn’t delivered).
When a customer pays a business profile, that transaction is typically tagged as a goods/services payment automatically, which means it could fall under Venmo’s Purchase Protection policy. This is similar to PayPal’s buyer protection.
From the seller’s perspective, this means if a customer claims they didn’t receive what they paid for, Venmo might get involved. Always keep documentation of your orders, shipments, or services provided.
If you can prove fulfillment, you’ll have a better chance of winning any dispute. It’s worth reading Venmo’s User Agreement sections on the Venmo Purchase Program for details on what transactions are covered. Note that not all transactions are guaranteed (for example, certain items or services might be excluded).
Privacy Considerations: Venmo’s social feed is a double-edged sword. On one hand, it’s great for marketing; on the other, some customers might not want their payments broadcast. Reassure customers that they have the option to set any payment to private.
As a business, you can decide whether your default audience is public or private for payments received. Venmo by default may set business transactions to public (for discoverability), but you can change a specific transaction’s privacy if requested.
In terms of data, customers’ financial info (like card numbers or bank accounts) is not visible to you when they pay – you just see that they paid via Venmo. Likewise, you should be careful with any data you do collect (like if you note their name or send them receipts via email). - Scams and Cautions: Be aware of common payment scams. For instance, never accept a Venmo payment for an amount larger than your product’s price with the intention to refund the difference – that could be a fraudulent overpayment scam.
Also, ship goods only to the buyer’s verified address and only after payment is completed. Unlike credit card payments, Venmo transactions are quick and usually irreversible by the sender (they can’t just chargeback like a credit card without involving Venmo support).
If someone claims to accidentally pay you and asks for a refund, be very cautious – scammers might use stolen credit cards, and once the real owner disputes it, Venmo could revoke that money from you.
It’s best practice to only refund through the original Venmo transaction (using the refund feature in the app) so it’s tied to the payment record. - Regulatory Compliance: Venmo is required to follow U.S. financial regulations. For example, because Venmo is essentially a money service, larger transactions or volumes might prompt Venmo to verify your identity (that’s why you provided SSN/EIN).
They also comply with AML (anti–money laundering) laws, so don’t be surprised if any extremely large payments get a second look. For normal small business operations, this is rarely an issue.
Another thing to note: Venmo will issue you a Form 1099-K for tax reporting if your business profile’s transactions meet the IRS thresholds for reporting. In any case, track your income because you are obligated to report business income from Venmo even if you don’t get a 1099-K form.
Venmo vs. Other Payment Platforms: How Does It Compare?
Venmo for Business is a handy tool, but how does it stack up against other payment options available to U.S. businesses? Below is a comparison of Venmo with a few popular platforms in key areas:
- Venmo vs. PayPal: It’s no surprise to compare these two, since PayPal owns Venmo. PayPal is a more established payment processor for businesses, supporting international transactions and offering features like detailed invoices, integration with eBay, and robust seller protection programs.
However, PayPal’s fees are generally higher – typically around 2.99% + $0.49 per transaction for online sales (some PayPal transactions go up to 3.49% + $0.49).
For in-person payments via PayPal QR code, fees are around 1.9% + 10¢ (similar to Venmo’s). The main differences: Venmo is U.S.-only and socially-focused, appealing to younger consumers, whereas PayPal is global and seen as more formal.
Venmo transactions feel instant and friendly (often tied to a phone number or username), while PayPal transactions use emails or checkout carts and can support more complex needs (like subscriptions, multi-currency, etc.).
If your business has a broad or international audience, PayPal is necessary; but if you mainly cater to U.S. individuals and want to avoid some of PayPal’s higher fees and formality, Venmo is a great addition.
Many businesses actually use both – they’ll accept PayPal and also list a Venmo handle for those who prefer it. One advantage of PayPal is more extensive buyer and seller protection policies, which can reduce risk for big-ticket items (though it comes with the cost of those higher fees). - Venmo vs. Square: Square (also known as Block, Inc.) is a popular choice for in-person payments, known for its little white card reader and point-of-sale app. Square is excellent for retail and restaurants because it offers a full POS system, inventory tracking, and the ability to swipe or tap physical cards.
Square’s fee for card-present transactions is 2.6% + 10¢ per swipe/tap, which is higher in percentage than Venmo’s 1.9% but doesn’t require the customer to have any specific app (they just use their credit card).
Square also charges 3.5% + 15¢ for manually entered card payments. Venmo, by contrast, doesn’t require any hardware or monthly POS subscriptions – it’s just the app.
Venmo is superb for small-scale operations that want to avoid hardware and monthly costs, whereas Square is better if you need a more traditional register setup or if a lot of your customers don’t use Venmo.
Security-wise, Square transactions are standard card payments with typical fraud prevention. Venmo might be cheaper for many transactions and can be used on the go easily (just a phone), but it lacks some of Square’s advanced business tools (like printing receipts, managing inventory, etc.).
One could even use both: for example, a shop might take credit cards via Square and offer a Venmo QR code at the counter. If you do in-person sales events, note that Venmo’s Tap to Pay feature is making it more like Square in accepting cards without a reader – but fees are then 2.29% + 9¢, still slightly lower than Square’s. - Venmo vs. Cash App: Cash App (by Square/Block) is another peer-to-peer payment app that offers business accounts. Cash App is also very popular among younger users.
The experience of sending money on Cash App or Venmo is similarly simple from the user perspective (a few taps on a phone).
Cash App for Business accounts incur a fee of about 2.75% per transaction (or 2.6% + 15¢ according to recent updates), which is higher than Venmo’s 1.9% + 10¢. Cash App also allows businesses to accept credit card payments with no extra effort (the sender just uses their card) but effectively that’s built into the fee.
One difference: Cash App doesn’t have a social feed like Venmo. Also, Cash App is known for allowing Bitcoin transactions, but that’s probably not directly relevant for most businesses.
Both Venmo and Cash App instantly notify you of payments and let you cash out to a
bank (Cash App’s instant deposit fee is around 0.5%-1.75%, similar to Venmo’s 1.75%).
One downside is Cash App has had issues with scams as well, and it also lacks any purchase protection (there’s no equivalent of Venmo’s Purchase Protection; Cash App transactions are usually final).
From a branding perspective, saying “We take Venmo” might carry more trust for some customers than “we take Cash App,” simply because Venmo is a bit more mainstream for business use (PayPal’s ownership and promotion of Venmo for business profiles lends credibility). - Venmo vs. Zelle: Zelle is a bank-to-bank payment network integrated into many banking apps. It’s great for instant personal payments directly between bank accounts and doesn’t charge fees itself.
For business, some banks allow Zelle payments to business accounts (often with limits). For instance, a micro-business might accept Zelle payments to their business bank account.
However, Zelle was not originally designed for merchants – there’s no built-in protection for buyers or sellers, and no business profile or discovery mechanism (the customer needs your email or phone number to send via Zelle).
Some banks impose transaction limits or even small fees for Zelle on business accounts (e.g., some banks charge $0 or a small fee per incoming Zelle payment – it varies). The advantage of Zelle is speed and direct deposit to your bank, with no percentage taken out.
But the disadvantage is lack of recourse: if a customer claims they never got what they paid for, the bank won’t mediate – you’d have to resolve it directly. Also, you can’t easily integrate Zelle on a website checkout or use it for in-person in the same way (it’s more of a manual send).
Many businesses choose not to publicly advertise Zelle for payments from random customers, using it more for invoiced clients or people they trust.
In contrast, Venmo provides a better structured environment for commerce – user profiles, the ability to find businesses in the app, and some transaction protections.
If avoiding fees at all cost is your goal and you deal with known customers, Zelle is an option, but for broader customer bases, Venmo is safer and more user-friendly. - Venmo vs. Traditional Card Processors (Stripe/Square Online/etc.): If your business is primarily online or you need to accept a variety of payment methods, you might use a processor like Stripe or Authorize.Net via your website or an invoicing tool.
These typically charge around 2.9% + $0.30 per transaction (for Stripe) and support worldwide payments. Venmo is not a replacement for those in a global sense – it’s more of an additional wallet option for U.S. customers.
In fact, Stripe and PayPal have both integrated Venmo as a payment option for merchants precisely because it adds value. So, you might not think of it as Venmo versus Stripe, but rather Venmo via Stripe (Stripe merchants can accept Venmo wallet payments as of recent updates).
One thing to note: if you invoice clients, PayPal and Stripe allow you to send invoices; Venmo doesn’t have a formal invoicing system (you’d just request money or send your username).
For selling on marketplaces or platforms, PayPal is often the standard; Venmo might not be supported. Thus, Venmo excels for peer-to-peer style transactions and as a modern convenience, but it’s not as full-featured as some traditional payment gateways.
The good news is you can mix and match: use Venmo alongside these other methods to give customers more choice.
Tips for Using Venmo for Business Effectively
To get the most out of Venmo for Business, keep these best practices and tips in mind:
- Complete Verification: Make sure you verify your identity and (if applicable) your business with Venmo fully. A verified business account enjoys higher transaction limits – up to $25,000 per week in payments and up to $49,999 in weekly bank transfers.
Unverified accounts are limited to much smaller amounts (around $2,500/week). Verification also likely improves trust and reduces chances of payment holds. - Public Payments = Free Marketing: Consider encouraging customers to keep their payments public (or friends-only) when they pay you, as this will broadcast their purchase on the social feed (with whatever note they attach). This creates a buzz and could bring in new business via their friends.
For example, if Alice pays “Baker’s Dozen Bakery 🍪” on Venmo and it shows up publicly, her friend might comment “Those cookies looked delicious!” – increasing awareness. Of course, respect customer preferences for privacy – you can gently mention it, but don’t force it. - Use a Clear Business Name and Profile Pic: This might seem obvious, but ensure your Venmo business profile name and picture make it easy for customers to identify you.
If your legal business name is John Smith but you run “Smith Consulting”, use the consulting name in your profile and maybe a logo as the image.
A recognizable profile prevents customers from accidentally paying the wrong person. It also makes your business look professional and trustworthy on Venmo’s platform. - Leverage the QR Kit: If you do in-person sales, display your Venmo QR code prominently. Use the free kit Venmo provides or create a nice printout. You might put a sign by the register: “We Accept Venmo” with the QR code.
Many people will appreciate the option, and it can speed up checkout. The kit’s lanyard card is handy if you, say, roam at a craft fair – you can wear your QR code so customers can scan you to pay. Little conveniences like this can make a big difference. - Communicate Fees if Needed: Savvy customers might ask, “Is there a fee if I pay you with Venmo?” You can confidently say, “No – it’s free for you, I cover a small processing fee on my end.”
Since Venmo doesn’t charge buyers, they’ll be happy to use it. Just build that fee into your pricing. If you ever need to, you can factor the ~2% cost into your product prices (it’s small, but for very tight-margin items keep it in mind). - Plan for Taxes: Keep records of your Venmo sales for tax time. Venmo provides monthly statements and a year-end transaction history which you should download. Remember, you need to report gross income (before fees) to the IRS. You can deduct the processing fees as a business expense separately.
If you cross the IRS threshold (which could be $600 or a higher temporary threshold depending on current rules), Venmo will send you a 1099-K form, but even if they don’t, you must still report your earnings.
It might be wise to set aside a portion of your Venmo revenue for taxes, especially since payments may not have withholding. - Maintain Professionalism: Treat Venmo payments like you would any other merchant payment. Send a thank you or confirmation via email or text if that’s part of your workflow (Venmo itself doesn’t email you when you’re paid, it’s all in-app).
If a customer notes what they bought in the Venmo transaction description, great – if not, you might want a separate receipt system for clarity. Also, keep your customers’ information private. While you might see their name and maybe profile pic, don’t misuse that data. - Combine with Other Tools: Venmo for Business can be part of a larger ecosystem. If you have accounting software (like QuickBooks), be sure to log your Venmo sales there. There are ways to sync or manually import Venmo transactions to bookkeeping software for tracking.
Likewise, if you’re using a POS, you could create a tender type “Venmo” to record those sales in your system when customers pay by scanning. This ensures your inventory and sales totals are accurate across all payment methods. - Stay Updated on Policies: Venmo occasionally updates its fees or policies. For example, in mid-2024, Venmo increased the fee for goods-and-services payments on personal accounts to 2.99%, but kept business profile fees at 1.9% + $0.10.
That change actually made business profiles even more attractive cost-wise. Keep an eye on Venmo’s announcements or help center for any changes to fees, purchase protection terms, or new features (like the introduction of Tap to Pay was a new feature). Staying informed will help you avoid surprises. - Customer Support and Dispute Resolution: If you ever have an issue – say a customer disputes a charge or you suspect a fraudulent payment – reach out to Venmo’s support. They have chat and email support that’s generally responsive.
As a business profile, you want to maintain a good standing, so resolve any disputes quickly. If you refund a customer for a legitimate reason, you can do it through the app.
If you encounter a truly fraudulent scenario (like someone paid with a stolen card via Venmo), Venmo may claw back that payment; in such cases, providing any proof you have (emails, shipment tracking, etc.) to Venmo can help your case.
By following these tips, you can maximize the benefits of Venmo for Business while minimizing any potential downsides. Many small businesses thrive by embracing modern payment apps like Venmo – it makes the transaction experience fun, fast, and aligned with how people already exchange money in their daily lives.
FAQs about Venmo for Business
Below we address some frequently asked questions regarding using Venmo as a business payment tool:
Q: Is Venmo for Business free to use?
A: Setting up a Venmo business profile is completely free – there are no signup or monthly fees. You only pay a processing fee per transaction when you receive a payment (1.9% + $0.10 of the transaction).
For example, if a customer pays you $50, the fee would be about $1.05 which Venmo deducts, and the rest goes to you. There are also no fees for your customers to pay you via Venmo. Optional services like instant bank transfers (1.75% fee) are the only additional charges you might incur.
Q: How do I sign up for a Venmo business account?
A: You’ll need to have (or create) a personal Venmo account first, since a business profile is linked to a personal profile. In the Venmo app, go to the menu and look for an option to “Create Business Profile.”
Tap that and follow the prompts – you’ll provide details like your business name, category, and tax info (SSN or EIN). It takes just a few minutes to set up, and there’s no separate login; you’ll use your same Venmo login and then toggle to your business profile within the app.
Q: Can I use Venmo for Business if I’m a freelancer or sole proprietor?
A: Absolutely. Venmo business profiles are designed for individuals (sole proprietors) as well as registered business entities. When you sign up, Venmo will ask if you’re using an SSN (sole proprietor) or an EIN (LLC/Corp).
If you’re a freelancer, you likely don’t have an EIN, so you can use your SSN. You’ll effectively be operating as a sole proprietor on Venmo. It’s a great solution for freelancers, photographers, tutors, etc., to collect client payments.
Just remember, even as a sole proprietor, those payments are income that you should track and report for taxes.
Q: What are the payment limits on Venmo business accounts?
A: Venmo does have weekly rolling limits. For business profiles, if your account is unverified, the weekly receiving (spending) limit is around $2,500. Once you verify your identity/business, you can receive up to $25,000 per week in payments (and send up to $25k as well).
Transfers to your bank are capped at $49,999 per week for verified accounts. Additionally, a single instant transfer to a debit card is limited to $10,000, and to a bank account is $50,000 in one go.
These limits are usually plenty for small to mid-sized businesses. If you ever hit the limit, you might just need to wait for the week cycle to reset.
Q: How fast can I get my money from Venmo?
A: Payments show up in your Venmo balance immediately after a customer pays. From there, you have two options: a Standard Transfer to your linked bank (free, takes 1–3 business days) or an Instant Transfer (typically 30 minutes or less) to your bank debit card or account, which costs 1.75% of the amount.
For example, an instant transfer of $200 would cost $3.50. Many business owners use standard transfers daily or weekly to sweep funds to their bank for free, unless they need the cash faster.
Q: Are transactions on Venmo for Business secure and protected?
A: Venmo uses bank-grade security measures like encryption to protect transactions. In terms of transaction protection, eligible purchases made to business profiles can be covered by Venmo’s Purchase Protection for the buyer, which can help refund them if something goes wrong with the order.
As a seller, this means you should keep proof of delivery or service in case of disputes. Venmo does not offer a specific “seller protection” guarantee like PayPal does, so it’s important to be diligent (avoid shipping to unconfirmed addresses, etc.).
Overall, for you and your customer, Venmo is a safe platform as long as standard precautions are taken. Be wary of any suspicious payment situations. And never share your account password or verification codes with anyone.
Q: How does Venmo’s fee compare to credit card fees?
A: Venmo’s standard business fee is 1.9% + $0.10 per transaction. Traditional credit card processing fees usually hover around 2.5% to 3% plus a fixed fee (for example, 2.9% + $0.30 is common for online payments).
So Venmo is generally a bit cheaper per transaction. For instance, on a $100 sale, Venmo would charge $2.00, whereas a 2.9%+30¢ processor would charge $3.20. That said, Venmo is only for domestic U.S. payments and requires the customer to use Venmo.
Credit card processors will allow any customer with a Visa/MasterCard/Amex, etc., to pay. Many businesses use Venmo as a cost-saving option for those who can use it, and still accept cards for others.
Q: Can customers without Venmo pay my Venmo business profile?
A: If a customer doesn’t have a Venmo account, they can still pay you through Venmo’s Tap to Pay feature in person (using their credit/debit card on your phone, as described earlier). But they cannot directly send money to your Venmo username without a Venmo account.
For online sales, if you have the Venmo button on your website, a non-Venmo user could just choose PayPal or credit card instead. Essentially, Venmo is one option – those who don’t use Venmo can use your other payment methods (cash, card, PayPal, etc.).
It might be worth suggesting to a frequent customer to consider joining Venmo (it’s free), but that’s up to them.
Q: Does Venmo provide any reporting or integration for bookkeeping?
A: Venmo allows you to download statements and transaction histories from the app or website. You can get CSV files of your transactions which can be imported into Excel or some accounting software.
There isn’t a direct QuickBooks or Xero integration built into Venmo as of now. However, some third-party services or workflows can sync data (for example, PayPal has integrations, but Venmo being more mobile/social, it’s a bit manual).
The business profile does tag transactions as “business” and can provide a summary for taxes. Additionally, if you surpass the reporting threshold, you’ll get a Form 1099-K from Venmo for your taxes.
In short, you may need to do a bit of exporting and reconciling yourself, but it’s not difficult for a moderate number of transactions.
Q: What if a customer wants a refund or I need to cancel a payment?
A: Venmo doesn’t have a formal “invoice” to cancel – if a payment was made to you, you have the ability to issue a refund (in full or partial) from the Venmo app. Find the transaction in your business profile feed, tap it, and look for an option to refund.
If the option isn’t readily available, you may need to contact Venmo support to assist (in some cases Venmo might need to enable refunds for certain transactions). If a customer paid you accidentally or the wrong amount, the simplest thing is to refund that payment back to them via Venmo.
Keep in mind, the transaction fee you originally paid will not be returned to you when you refund – you basically eat that cost. So it’s better to double-check amounts and details to avoid refunds, but it’s good to know you can do it.
Also, if you haven’t accepted the payment yet (for example, this can happen with payment requests), you could simply not accept it – but with business profiles, payments are usually instant and automatic.
These FAQs cover the common points of confusion. If you have a question that isn’t answered here, Venmo’s Help Center online has a section for Business Profiles that’s quite informative, or you can reach out to their support.
Conclusion
Venmo for Business offers a modern, user-friendly way for U.S. businesses to accept payments smartly and swiftly. By setting up a business profile on Venmo, you can tap into a huge network of Venmo users who are already comfortable sending money on the platform.
It’s an especially powerful tool for small businesses, side hustlers, and anyone who values low fees and social engagement. With Venmo, you provide your customers an easy checkout experience – whether they’re scanning a QR code at your cash register or clicking a Venmo button on your online store.
We’ve covered how to get started, from downloading the app to linking your bank, and outlined the costs (which are transparent and competitive).
We’ve also compared Venmo to other payment options: it stands out for convenience and cost savings, though it works best alongside traditional methods rather than completely replacing them.
Security-wise, Venmo employs robust measures and offers purchase protections, giving both you and your customers peace of mind in transactions.
As you integrate Venmo into your business, remember to keep best practices in mind – verify your accounts, keep records, and use the platform’s features (like tipping and the social feed) to your advantage.
In a people-first approach, meeting your customers where they are is key, and many are on Venmo. By accepting Venmo, you’re showing you’re adaptable, tech-savvy, and attentive to your customers’ preferences.
In the fast-evolving landscape of digital payments, Venmo has proven it’s not just a buzzword but a useful business tool. It aligns perfectly with the “mobile-first” lifestyle of today’s consumers.
So, whether you’re a boutique owner, a freelance designer, or run an online craft shop, Venmo for Business could be the smart way to get paid – quickly, securely, and with a smile (and maybe a fun emoji) attached.
By focusing on genuine value for your customers and leveraging platforms like Venmo that they love, you’ll enhance your business’s reputation and potentially even expand your reach via that Venmo word-of-mouth effect.
In the end, more payment options mean more ways to make a sale. Venmo for Business is a tool worth considering as you continue to grow your business in an increasingly cashless, digital world. Happy selling, and may your Venmo notifications ping often with new payments!