You can sign up for a Venmo business profile to accept payments from customers. Your customers will be able to find your business and send payments.
But what are the costs involved?
We’re going to break down the Venmo business fees, and the benefits of having alternatives, like Wise.
| 📑 Table of Contents |
|---|
|
Receive international paymentswith Wise Business
Venmo Business fees
Venmo charges fees on seller transactions so as to keep improving the service they provide, as well as helping Venmo to provide other business-specific features like tax reporting, enhanced payments, and disputes services. The business profile fees also follow the relevant industry standards.¹
These Venmo fees are what help Venmo grow as a business and provide more business-centric services going forward.
It’s also important to check with your card provider so that you can know about any additional charges for receiving money from Venmo users.
You should remember that Venmo offers a free 30-day trial period for a business profile. This means that during the first 30 days of having your business profile up and running, you will not be charged a seller transaction fee for any payments made to your business.¹
Venmo business account fees
While there is no setup fee for the Venmo business profile, nor any monthly fees, there are some Venmo business account fees to be aware of, such as the transaction fee for selling goods or services on the platform.
Each transaction is subject to a seller fee of 1.9% of the payment plus $0.10. Therefore, if someone pays your business 100 USD, you will receive 98 USD. This is because the subtracted amount is (1.9% X 100) + 0.1 = $2. The fee is non-refundable. Transaction fees only apply to payments that are over $1 in value.
If you’re planning to buy or sell cryptocurrency, there is a minimum fee that corresponds to the amount spent or sold. This starts at $0.50 for a purchase or sale in the range of $1-$24.99.
As a buyer, you will have to pay a 3% fee on payments sent to people using your credit card.
Using Venmo for a business, then, is in part a question of whether you’re ok paying the seller fees it charges.
| Feature | Fee¹ |
|---|---|
| Account setup | $0 |
| Monthly fee | $0 |
| Online purchases | $0 |
| Sending money to people (credit card) | 3% |
| Sending money to people (balance/debit card/bank) | $0 |
| Receive payments in your business profile or that identified as for goods and services | 1.9% + $0.10 |
| Electronic withdrawal |
|
Venmo business payment limits
Venmo puts a limit on the amount that a user can pay to your business. A Venmo user can send you a maximum of 2,999.99 USD in a single transaction, and a weekly maximum of 6,999.99 USD. For a business profile set up as a sole owner, the card limits on their personal account also apply to their business account.²
In the case of a business profile set up as a registered business, the payment limits and bank transfer limits are similar to those of the personal profile as mentioned above.
Does Venmo report to the IRS?
Venmo is obliged to provide information to the International Revenue Service (IRS), as are all other payment processors based in the United States.³
Any payment processing platform that allows users to receive payments for the sale of goods or services must report to the IRS with the necessary information.
Venmo is required to submit the total payment volume received by those with a business profile account according to certain criteria.
It’s possible that you may be asked to provide Venmo with your US taxpayer identification number if the thresholds of sales from your business profile exceed a certain limit. Failure to comply and report such information when requested will result in restrictions on your account.
Venmo business account alternatives
| Fees | Key features | |
|---|---|---|
| Square |
|
|
| Stripe |
|
|
| PayPal |
|
|
| Wise Business |
|
|
Receive international payments with Wise Business
It’s worth bearing in mind that you can’t make Venmo international transfers. If you want to receive payments from abroad, you won’t be able to. Transactions are limited to the US.
The Wise Business account enables you to do business internationally with a number of features, such as invoice and employee payments, and local account details for ten major currencies. You can pay and get paid like a local, at the real mid-market rate.
Importantly, you can receive money in various currencies without being charged high recipient or conversion fees.
🌎 Go international with Wise Business
All-in-all, the main thing to consider when looking at Venmo Business fees, is the seller fee of 1.9%.
Venmo business offers a simple and friendly experience for receiving payments to your business. It also comes with some ingenious additions like tax reporting, disputes services and preset price QR codes.
However, if you want to do business on a global scale, you need a solution like Wise, which goes beyond the payment itself. It comes with support features that address the day-to-day managerial details surrounding international business payments.
Sources:
- Venmo - Business profile fees
- Venmo - Payment limits
- Business Profiles Tax FAQ – Venmo
- Square Processing Fees - Card Processing at No Monthly Cost
- Pricing & fees
- Fees | Merchant and Business
Sources checked on 06.30.2021
| 💡 More on Venmo |
|---|
|
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information. This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
