Can I use Venmo to buy or sell merchandise, goods, or services? (2024)

FAQs

Can I use Venmo to buy or sell merchandise, goods, or services? ›

The only way to accept payments for goods and services on Venmo is to be explicitly authorized to accept Venmo for purchases. This can be achieved by applying for a business profile or by having the sender tag a payment to a personal profile as a purchase.

Your personal Venmo profile can be used to send and receive payments for good and services. Learn all about buying and selling (without a business). If you have a Venmo business profile or are interested in signing up for one, please view our Business Profile Help Center.

When you initiate a payment to another personal profile on Venmo, you may see the option to tag the payment as a purchase. After tapping or clicking on Pay/Request, select your recipient(s) and enter the amount & note, then tap Pay. On the next screen, there may be a toggle shown below your payment method.

When sending money on Venmo, users can choose to tag a payment as being for “goods and services”. Whether it's for a product you sell, a service you provide, or even an old couch you don't want anymore, the person paying for the item or service can decide whether to tag the payment.

Connect your Venmo account to thousands of apps and mobile websites, then speed through checkout using your balance or a linked payment method. Paid back for last night's dinner? Time to get some shopping done.

After tapping the blue Pay button on Venmo, a slider appears labeled "Turn on for purchases". To turn off Goods & Services, set the slider to the left, where it will turn grey. Tap it again to turn the feature back on.

The minimum fee is $0.25; the maximum fee is $25. The merchant fee is 1.9% of the transaction amount. An additional $0.10 is charged to receive funds for services/goods.

The seller fee for payments tagged as purchases enables Venmo to provide the Venmo Purchase Protection Program for eligible payments. Venmo's Purchase Protection program can help prevent you from losing money due to unauthorized transactions or claims of missing merchandise.

Payment holds are a common industry practice that Venmo implements to help ensure a safer environment for both buyers and sellers on our platform. As selling products and services online carries some inherent financial risk, these holds provide an easy path to resolution in the event of disputes on eligible payments.

Both offer free payments from linked bank accounts, and both charge about 3% for payments from a credit card. Where they differ slightly is that Venmo extends its no-fee option to payments made from debit cards, while PayPal only allows free payments directly from a bank account.

Is rent considered goods and services on Venmo? ›

However, on the positive side, Venmo does issue a 1099-K form for individuals who receive more than $600 for sales of goods and services, which, in the case of landlords, would include rent payments.

Why does Venmo continue to decline my payment? The main reason a Venmo account will continue to decline is because of app glitches, unstable internet connection, improper banking information, incorrect personal information, or suspicious activity on your account.

As of July 2024, if you “receive payments in your personal Venmo account that are identified by the sender as for goods and services,” you will be charged 2.99%. (The percentage of that payment goes directly to Venmo.)

Can I use Venmo to sell goods or services? The only way to accept payments for goods and services on Venmo is to be explicitly authorized to accept Venmo for purchases. This can be achieved by applying for a business profile or by having the sender tag a payment to a personal profile as a purchase.

Safety Concerns with Venmo

Like other payment or banking apps that connect to users' bank accounts, using Venmo comes with the risk of security breaches, hacking, or data loss. Unfortunately, hackers and scammers have been able to circumvent these safeguards.

Venmo should only be used to transact with people you know. Do not use Venmo to pay or receive payments from people you don't know, especially if the payment involves the purchase or sale of a good or service. Such payments are potentially high risk and you could lose your money without getting what you paid for.

Venmo forbids these transactions for two reasons. Firstly, personal profiles don't have the tax records necessary for business accounts. And secondly, there's no way of ensuring customer privacy when accepting personal payments.

Do not use Venmo to pay or receive payments from people you don't know, especially if the payment involves the purchase or sale of a good or service.

But if you use Venmo for certain types of transactions, you could be on the hook for taxes. The good news is that personal transactions on the payment platform typically don't generate tax liability. It's when you use Venmo for business purposes that you need to prepare for a tax bill.

Venmo is safe for sellers looking to do legitimate business, as the buyer can't just cancel a payment once it's sent. Venmo is also safe for buyers, but there's no guarantee Venmo will refund money if you're scammed. Here are some safety features Venmo offers: Mandatory verified phone number and email.