How To Legally Accept Venmo For Your Business

Update 10/19/2020: Venmo has started to roll out its new and improved business version. It's not available to everyone yet and it appears you sign up on the app itself. If you don't have the option yet, keep checking!


Their processing fees will also be lower than the standard market fees. 1.9% + $0.10 per transaction. They will also be offering FREE payment processing to some new business accounts!!





I'm sure you've heard, from me undoubtedly, that you cannot use Venmo for business purposes, well, for some businesses*, this is no longer the case! There are now two ways to accept Venmo which is via integration with PayPal or Braintree (*Braintree currently only allows certain types of businesses to use Venmo).


But, to give you a bit of context in case you were not aware that there was a point where it was not legal to use Venmo for business transactions, it wasn't and still isn't in a sense.... Venmo was designed for "P2P" transactions (Person 2 Person) only and not for any type of business service.


In fact, using their platform for business purposes in any other way than what we talk about below will still violate their terms as well as other financial regulations and once Venmo notices an account holder using it for any other than P2P, you will be banned.



There is not a big difference between using the PayPal integration or Braintree, after all, Braintree is a division of PayPal. But let's take a look at each option:



Integration via PayPal:


How: A PayPal Smart Payment Button (TM) is added to your site

Processing fees: 2.9% + $0.30 cents per transaction

Where the money goes: The payment will process to your Business PayPal account

Terms: All PayPal payment Terms & Conditions apply for these transactions

Setup Here



Integration via Braintree*:


How: Customer uses their digital wallet and authorizes Venmo for your site

Processing fees: 2.9% + $0.30 cents per transaction

Where the money goes: The payment will process to your Business account linked to Braintree

Terms: All Braintree payment Terms & Conditions apply for these transactions

Setup Here


While it is great to have another payment option for your customers, since the app itself is not actually used when paying it doesn't appear to offer too much value (in my opinion). The point of Venmo is to use the app and send/receive money in under 2 minutes or less. The customer still has to visit your website, complete a checkout process, authorize Venmo (if the integration is Braintree), etc.


If you already use PayPal, I don't see any harm in having another button and payment option available, but if you don't use Braintree, I see no reason to start just to have Venmo as an option.


While this information currently does not seem super exciting, we want to stay progressive and provide many options but I'm also sharing this b/c I actually got a sneak peek at what will be coming for Venmo Business and it's Ah-Mazing! Like PayPal, but better (Invoicing, direct payments, QR codes, reviews, social profiles, and MORRRE)!!!!! If you decide not to jump on the train right now due to the limitations, keep Venmo Business in the back of your mind, b/c it will get better!



MW


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