PAYMENT PLATFORM
What is Venmo?
VENMO has quickly becoming one of the biggest money-sending platforms in America.
The company was founded back in 2009 and is located in New York City.
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What is Venmo?
Known as a peer-to-peer payment platform, Venmo is a mobile payment service that is owned by PayPal.
Venmo can be used to send and accept payments to and from people on the app.
In the first quarter of 2018, the service handled over $159 billion in transactions.
Venmo is also used by business to pay freelance employees.
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Does Venmo have fees?
There are no fees to sign up for the app and it is completely free to use, however, there are certain transaction fees depending on how you use the app.
Instant Transfer Free
The Instant Transfer Fee is used for users to transfer their money instantly from the app to their bank account.
The fee is either 25 cents or 1% of the total transfer, depending on which number is higher.
There are fee transfer options for users, it just takes 1-3 business days for the money to transfer over.
Credit Card Processing Fees
If users decide to send money from a credit card, they will need to pay a 3% processing fee.
The fee comes from credit card companies, not the app, and instead of Venmo paying it directly, they have users cover the cost.
Merchant Fees
Merchant fees are for those who accept Venmo as a form of payment at a retail location.
Merchants end up paying a transaction fee of 30 cents, added to a 2.9% fee on the transaction total.
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Can you sell goods and services on Venmo?
Originally, Venmo was designed to send and receive money but recently, the company announced that they will start allowed users to sell products or services from their personal accounts for an additional fee.
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Previously, users were not allowed to receive money from a business transaction on a personal account, users had to have a business profile.
However, taking effect on July 20, 2021, users who don’t want to create a business profile will be allowed to accept money for goods and services without violating Venmo's policies.
For users that decide to use their personal account for business transactions, they will be charged the same business profile fees of the 1.9% plus 10-cent fee.