Full Venmo for Business Review: Key Features, Fees & Alternatives

Venmo initially launched in 2009 as a peer-to-peer payment service, allowing friends and family to easily send each other money for free. It has since expanded to allow businesses to accept payments, and now more than two million merchants use it to receive payments from their customers online or in-store.

In this Venmo for Business review, we look at the features of Venmo for Business to help you decide whether it is a suitable choice for you to accept payments for your business.

If you need to send and receive payments internationally, you may also consider Wise Business as a smart low-cost alternative with transparent fees.

Methodology: The team of dedicated content experts at Wise research each provider thoroughly, uncovering the key features, fees, and pros and cons to watch out for. This is then collected into an easily digestible format, to save you time and hassle when looking into a provider.

Venmo for Business Review : Quick Overview

🗝️ Key features	Customers can easily transfer funds via their Venmo app Low transaction fees No setup or monthly fees Accept payments via QR code
💰 Main fees¹	Transactions: 1.9% + $0.10 Pay with Venmo: 3.49% + $0.49 Credit card payments: 3%
✅ Great for:	Solo business owners who take contactless payments on the go, such as pop-up events and street markets.

Venmo for Business : Key Features

The Venmo mobile app allows customers to transfer funds to businesses’ accounts. You can create a business profile from your personal account using the same login, and switch between the two to keep transactions separate.

Once the business account is set up, you can accept payments from customers with your username, via payment link incorporated into a Shopify, Braintree or PayPal checkout, or a unique QR code for contactless payments. Venmo does not provide a physical card reader or point-of-sale equipment.

Customers who make a purchase using a QR code receive a returns barcode in their email receipt. Venmo can issue full or partial refunds to the customer’s original payment method, depending on your business’ refund policy.

Venmo makes it easy for sellers to receive tips from customers. Turning on the tipping option in the account settings prompts customers to add a tip to their purchases.

Customers can use their available Venmo balance in a business’ mobile app to quickly and easily complete purchases. They can also split and share purchases with friends.

Venmo does not charge setup fees or monthly subscription charges. The only costs associated with a business account are the transaction fee of 1.9% plus $0.10 to receive payments through a Venmo business profile, 3.49% plus $0.49 for payments made in a business’ app or online, and a 3% fee for payments made with a customer’s credit card rather than their Venmo balance or linked bank account.

The transaction fee is lower than the likes of Square’s 2.6% plus $0.10 in-person fee³ and Stripe’s 2.7% plus $0.5 fee.⁴

🔍 Read on for more:
Ease of Use Customer Service Venmo for Business Pros and Cons Venmo for Business Alternatives Conclusion: Is Venmo for Business the best choice for your business? Discover Wise Business: Receive international payments with ease

Ease of Use

Venmo makes it easy for businesses to receive payments by adding Venmo as a payment option at checkout in their app or on their website. For in-person payments, customers can simply scan your phone or QR code.

New business users can order a free kit that includes their QR code on a tabletop display with a stand, five stickers and a wallet card with lanyard. You can also send your business QR code to customers via email or text message to receive payments remotely.

Business users can transfer their funds from payments instantly, although this incurs a 1.75% fee while funds transfers in 1-3 business days are free.

Unlike some payment processors, Venmo makes the tax preparation process easier by sending its business users who receive more than $600 per year in payments a 1099-K tax form.

Most Venmo reviews on Trustpilot refer to its personal account service. However, there are some references to Venmo for Business. Positive reviews on Trustpilot state that customer service is helpful and responsive.⁵

However, some negative reviews from Trustpilot mention the inability to switch to a new business account without losing records.⁶

Customer Service

Venmo’s customer support team is available via email, online or in-app live chat between 8am and 10pm Monday through Sunday and by phone between 8am and 8pm Monday through Sunday.⁷

Venmo for Business Fees

Here is an overview of the main Venmo for Business fees:

• Transactions: 1.9% + $0.10 between Venmo accounts.
• Pay with Venmo: 3.49% + $0.49
• Credit card payments: 3%
• Instant transfers: 1.75%
• International payments: 1.5%

You can also read the full guide to discover more about what costs to expect with the Venmo business account.

🔍 If you’re looking for an online business account that can handle international transactions in multiple currencies, consider Wise Business. With a Wise Business account, you’ll pay no monthly fees and be able to convert international transactions at the mid-market rate.

Venmo for Business Pros and Cons

Benefits	Possible drawbacks
Low transaction fees No monthly charges QR codes for contactless or remote payments Free QR kit Free marketing to 83 million users through Venmo’s social feed	Extra charges for instant transfers Venmo’s app only works with US-based bank accounts and phone numbers Lack of full POS system Lack of team access

What are the benefits of Venmo for Business?

Venmo allows small business owners to accept contactless, in-person payments. Customers can scan the merchant’s phone app or printed QR code. The QR code is also ideal for freelancers, who can send it to clients via email or text message to accept payment remotely.

Venmo's social feed allows users to share their purchases with comments and emojis, so when they purchase from your business you gain exposure to millions of other users.

Unlike some mobile payment processors, such as Zelle, Venmo allows customers to pay with their credit card as well as their account balance or bank transfer.

What are the possible drawbacks of Venmo for Business?

Venmo does not automatically send payments to your business bank account – you need to request transfers out of the app(See Venmo Alternatives). Standard transfers take 1-3 business days, so you need to pay an additional charge of 1.75% for instant transfers. Other payment processors do not charge for instant transfers.

Venmo can only be used with US-based bank accounts and phone numbers, so US business owners abroad or looking to expand internationally will need to use an alternative payment processor like Wise or PayPal.

Venmo does not offer a full point-of-sale (POS) system, so if you prefer a dedicated card reader, terminal or till system, you’ll need to go with a full-service processor. Similarly, you’ll need a full-service provider if you want invoicing, time tracking and other advanced features.

As each Venmo business profile is linked to a personal account, only the person who set up the account can access it. This means you cannot add team members to help manage sales, so it’s best suited to solo business owners.

Venmo for Business Alternatives

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 for businesses that need to manage money in multiple currencies.

If you have overseas customers, you can set up local account details so that they can pay you just as easily as a local business. You can also connect your Wise account to accounting software to save time on admin and keep organized.

You can open a Wise Business account 100% online, with no monthly fees or minimum balance requirements. This makes it a great choice for busy business owners who want to skip waiting in line and booking appointments at local banks.

Some key features of Wise Business include:

Major local account details to receive international payments with ease No monthly account fees just a simple one-off fee for account details Receive payments from e-commerce platforms (such as Amazon or via Stripe). Create invoices using the Wise invoice generator or invoice templates. Accounting integrations, including a QuickBooks Bill Pay connection. Bill payments will be synced, matched, and categorized in QuickBooks for simple reconciliation. Batch payment options. Fast payment of up to 1,000 people.

Open a Wise Business account online

Cash App

Cash App, previously known as Square Cash, is a peer-to-peer payment app that was launched in 2013 to compete with Venmo and PayPal. It integrates with Square, which provides small business POS systems. Both Cash App and Square are owned by Block. Square’s checkout devices can display QR codes for direct payment via Cash App.

Cash for Business customers can receive payments from customers who have a Cash App account by sharing their Cash App QR Code, $Cashtag username, or the email or phone number associated with their account.

Cash App charges business accounts a 2.75% processing fee, although unlike Venmo it does not charge for instant deposits.⁸

PayPal for Business

PayPal has owned Venmo since 2013 to supplement its payment services. PayPal’s transaction fees can be complicated and quickly add up – particularly for international transactions. However, if you need to send and receive overseas payments – which you can’t do in Venmo – PayPal may be a suitable alternative. PayPal allows you to hold up to 21 foreign currencies in your account as well as US dollars.⁹

PayPal also offers various checkout integrations, including e-commerce platforms, marketplaces and accounting systems, as well as subscription payments and seller protection.

Conclusion: Is Venmo for Business the best choice for your business?

Whether Venmo for Business is suitable for you will depend on the needs of your business. If you want a simple way to accept mobile payments and reach a broad audience of potential new US-based customers through the app’s social feed, Venmo may be sufficient. But if you need to accept international payments and integrate your payments with other platforms, consider a provider that offers more features.

Discover Wise Business: Receive international payments with ease

Venmo provides a convenient way to receive payments from customers in the US. If you have customers overseas, consider using Wise Business.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account allows you to receive payments like a local with major currency account details, make international payments at the mid-market rate, and hold more than 40 currencies in one place.

That means your customers in Canada, for example, can pay you in CAD, and you can receive the payment to your Canadian account details with no extra cross-border fees or conversion charges. You can then use your account to send payments in CAD, or convert to USD at the mid-market rate. You can also send payments to 160+ countries.

Learn more about Wise Business

You can connect Wise to accounting software, such as QuickBooks, to manage your accounting. The business account also provides managed access to your team members to help run your business efficiently.

All in all, Wise is here to make managing your international business finances easier and cheaper.

Read next: Venmo Business vs personal

About the author:
	Panna is an expert in business finance topics for the US, covering topics from invoicing to international expansion. She creates high-quality reviews on business finance tools and products with the aim to help businesses save time and make informed decisions. You can read more useful business articles on her author profile.

---

Sources:

¹Venmo for Business - Business Profiles
²Venmo for Business - Accept Venmo in Apps & Online
³Square Processing Fees, Plans, and Software Pricing
⁴Pricing & Fees | Stripe Official Site
⁵Trustpilot
⁶Trustpilot
⁷Venmo Contact Us
⁸What is Cash for Business?
⁹Fees | Merchant and Business | PayPal US

Sources checked February 2024