How to Set Up Venmo for Business: A Complete Walkthrough

Payment apps are changing the way money changes hands. Venmo, one of the leaders in digital payment technology, has increased its retail consumer base by 50% since 2022. They’re projected to have over 90 million users by the end of 2024. Venmo for Business is their newest offering. Here are a few things you should know about it:

• You can only create one Venmo business profile, and you’ll need a personal Venmo account before you can set it up.
• Venmo supports Apple iOS 13 or Android Lollipop (API 21) or higher. If your operating system is an older version, upgrade.
• When your personal account is set up and verified, you should see a “business” option on your home page.

How to Set Up Venmo for Business: What to Prepare Before Getting Started

You can only create one business profile, so take some time to get this right. The first thing you’ll need is a personal Venmo account. You can set one up online at Venmo.com or through their mobile app. You’ll be using the mobile app for payments. They also offer a debit card if you prefer a more traditional piece of plastic to conduct business.

Venmo supports Apple iOS 13 or Android Lollipop (API 21) or higher. If your operating system is an older version, upgrade. Otherwise, you may be unable to download the app, or it may not work properly. You can conduct business on the website, but your options are limited. Venmo is designed to be mobile technology, not a website application.

In the next section, we’ll give you step-by-step instructions on how to set up Venmo for business. You’ll need a social security number or EIN to complete that process. You’ll also need to choose an email address, phone number, and handle for the account. The handle is the @businessname tag that others will use when they want to pay you.

The personal information you’ll need to set up Venmo is your name, address, birthday, phone number, and email address. You’ll also need your bank account's routing and account number as well as a username and password you can remember. Required supporting documents are an unexpired driver's license or official government identification.

You’ll go through three verification levels when setting up a Venmo account. The first is the identity verification of your driver’s license or government ID. That only takes a few minutes. They’ll also do a phone verification by texting you a security code you’ll need to enter into the app. Level 3 is the bank account verification. That takes one to two business days.

Step-by-Step Guide to Setting Up Venmo for Business

Follow the instructions above to set up your personal Venmo account. For best results, wait for all levels of verification to be complete before you open your Venmo business account. A delay with your ID or bank account could affect your business account setup, so do this one step at a time. Here’s how to proceed once that's done:

Step #1: Choose the Business Option on Your Home Page

When your personal account is set up and verified, you should see a “business” option on your home page. It will not be there if you already have a Venmo business account or have set up your personal account incorrectly. If the business option is there, click on it to start the setup process, then proceed to the next step below.

Step #2: Enter Your Phone Number and Click “Send Code.”

You must use a mobile phone, not a landline. Venmo needs to be able to send you text messages as notifications and for verification. Enter the phone number and then tap “send code.” Venmo will text you a code to enter a verification field on the app or website. Enter that code in the space provided to verify the account.

Step #3: Enter Your Legal Name and Phone Number

The IRS has been cracking down on individuals using third-party payment platforms like Venmo and PayPal. To avoid problems with them, enter your full legal name and the business email you want to use for your business Venmo account. It must be a legal entity so that Venmo can send a 1099 to you at the end of the year.

Step #4: Read and Agree to the Terms and Conditions

Don’t make the mistake of just clicking the “agree” button on the terms and conditions. Venmo is fairly straightforward, but you’re still signing a contract when you hit that button. Read the terms and conditions carefully to ensure you know what you’re getting into. When you’re satisfied that you understand what you read, click the button.

Step #5: Username, Display, Description, and Business Category

Choose a user name. This automatically generates a tag that is a permanent part of your account. Think carefully about what you want that to be. You’ll also be asked to add a short business description and choose a business category. This information is important because it lets your company know who you are and what you do.

Step #6: Add a Background and Profile Photo

Your customers will look at your Venmo profile before they send you money. That’s human nature. Adding a professional background and profile photo goes a long way toward selling your legitimacy to them. It may not seem like a big deal when setting up your Venmo business account, but every step in this process is important.

Step #7: Add Mailing Address and Business Information

Your mailing address may be different from your physical business address. Venmo has fields for both. Fill them out completely. Make sure you check the zip codes, as your 1099 will be mailed to the address you include here. This is the final step in the setup process, so preview your work when you complete it. When finished, publish your profile.

Best Practices for Using Venmo in Business

Using Venmo for Business provides many advantages to small businesses in the retail space or online stores. However, the business version is different from the personal version. The applications look the same and can be accessed on the web or mobile. You should do your research before you implement it into your operations.

Venmo is a third-party payment platform that can be used to send and receive money. That’s the first thing you see when researching how to set up a Venmo account for business. You might want to learn more than that before using your account. It’s important to understand the full capabilities of the platform. Here are some of the best practices:

Manage Your Venmo Business Account from the Web

It’s best practice to manage your account statements from the web, but you’ll also need your mobile phone to verify your identity. Venmo sends an authentication code when you log in to their web portal. The mobile app typically uses facial recognition. You can use either version to toggle between your business and personal account.

Don’t Try Using Venmo Outside the United States

Venmo is only available inside the United States. You’ll get an error message if you try to sign into the application while traveling abroad. You also can’t do international transfers with Venmo and can’t apply for a Venmo credit card if you don’t have a social security number. You might be able to use a Venmo debit card outside the US, but it’s not recommended.

Use Your EIN if You Have One

Processing over $600 in transactions on Venmo will subject your business to a tax liability. It’s best to assign that liability to an employer identification number and not your social security number because it’s difficult to separate business and personal transactions later on if you don’t. You can avoid that by setting up properly as a business entity.

Choosing the Proper Business Category

Your business category is important because it could affect your tax liability. A for-profit business will generally fit into one of the suggested categories in the setup process. Non-profits are usually listed under one umbrella. You can also set up Venmo for associations, civic organizations, political groups, churches, and schools.

What to Watch Out for When Setting Up Venmo for Business

Venmo doesn’t charge a setup fee, but they do charge a transaction fee of 1.9% plus 10¢ per transaction. Those fees are non-refundable and must be accounted for if you’re running a business. You should be able to deduct them as a business expense. Check with your accountant about the federal and state regulations.

Venmo cannot be used for international transfers, but several alternatives exist. Wise, PayPal, and WorldRemit are three of the most credible. You should also be able to process international wire transfers through your bank. If you’re transacting regular business that requires daily transfers, look into Wise for batch payments in multiple currencies.

The security on Venmo is good, but you’ll also want to install some internal security protocols to ensure you keep your account information safe. Never log into Venmo when someone is looking over your shoulder. You also don’t want to share your authentication code with anyone. Your Venmo account is unique to the user who sets it up.

If you’re still uncertain about Venmo, check their business reviews online. You’ll find that they were established in 2009 as a peer-to-peer payment service for friends and family transactions. Venmo for business was added later in response to demand from a business community looking for more seamless transactions.

Discover Wise Business: International Payments Made Easy

Venmo is great for individuals and small businesses that need fast payment processing. But you cannot use Venmo for international payments. Wise Business is a stress-free solution for sending and receiving payments in multiple currencies, and there are no monthly fees.

Find out more about Wise Business

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to countries.

Read the guide on how to open a Wise Business account

Other features of the Wise Business account include easy batch payments, international payments at mid-market rates, and the ability to hold over forty currencies. You can even receive payments like a local with account numbers for major currencies. This means that your customers can pay you in Euros, into your EUR account, without any conversion fees applied. You can then convert and hold payments to USD at the mid-market rate, all in one account.