Many people use money transfer or payment processor apps such as Venmo. They truly come in handy because they are so simple to use and have no or very low processing fees.
For that reason, many businesses are using Venmo for business transactions. Although it may seem fine, we urge you to stop immediately. That is unless you have an approved business account.
From what we have seen businesses on Venmo are usually operating as a personal account and according to Venmo’s terms “ Venmo may NOT otherwise be used to receive business, commercial or merchant transactions, meaning you CANNOT use Venmo to accept payment from (or send payment to) another user for a good or service.”
The app is to be used to make payments to friends or family unless you have an approved Business Venmo Account.
If Venmo suspects you are receiving payments for goods or services in a personal Venmo account here is what can happen:
- The sender could lose their money without ever getting what they paid for.
- If you accept a Venmo payment from someone for a good or service and Venmo later reviews the payment, they may reverse the payment, meaning you could lose both the payment and the item sold. This review process may not occur until after you attempt to transfer the funds out of Venmo.
Your alternative options:
- Venmo Business Account and make sure to read the terms!
- QBO Merchant Services
Not using the correct payment processors can make bookkeeping a disaster! If you would like to discuss other payment solution ideas and bookkeeping services CLICK HERE to book a call with one of our team members!