Venmo business account opening doesn’t need to be confusing. In this article, we’re sharing everything you need to know to open and use accounts through Venmo’s online business platform for business.
We will also be sharing important facts, including the costs you should expect when using Venmo for business. Plus, in case you are operating a high-volume business operation, we’ll be detailing the specific limits that Venmo places on transactions.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- What Is a Venmo Business Account?
- Personal Venmo Accounts vs Business Venmo Accounts
- Benefits of Setting Up a Venmo Account For Your Business
- How to Open a Venmo Business Account
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
What Is a Venmo Business Account?
A Venmo business account is an alternative payment method that allows customers to send online payments through the Venmo mobile app to businesses. This is a fast and effective form of payment processing for local businesses in the United States.
Additionally, a Venmo business account offers basic financial services, including money transfer functionality, a digital wallet, and a way to support e-commerce activities. That said, Venmo for business is not free.
Venmo business account transaction fees include a standard 1.9% fee plus an additional USD 0.10 per transaction. On the other hand, if the business uses contactless payment, the transaction fee jumps to 2.29% plus USD 0.10 per transaction.
Of course, a Venmo for business is not a replacement for a traditional brick-and-mortar bank. This is especially true in the case of foreign non-resident-owned US businesses or businesses that require support for foreign transactions. This is because Venmo only supports local US-based businesses and transactions for the time being.
But, if you are looking for a basic peer-to-peer payment platform for your business with sufficient payment security, Venmo for business might be worth considering.
In the following sections, we’ll take a look at how personal and business Venmo accounts compare, followed by answers to the most common questions we get asked on the topic.
Before diving in any further, if this is your first time visiting GlobalBanks, don’t forget to download your FREE US Banking Starter Guide. It’s designed to help non-residents with opening bank accounts at top financial institutions in the US.
Personal Venmo Accounts vs Business Venmo Accounts
The three main differences between personal Venmo accounts and business Venmo accounts are the intended use of the accounts, the fee structures, and the transaction limits.
While Venmo for individuals is entirely dedicated to supporting personal payment activities, Venmo for business supports commercial transactions and customer payments.
As a result of offering a valuable commercial service, Venmo for Business charges a fee per transaction. On the other hand, personal Venmo accounts do not charge these transaction fees.
Lastly, both personal Venmo and Venmo for business impose transaction limits. These limits vary depending on whether an account is verified or unverified, However, when comparing the verified and unverified accounts for personal and business Venmo accounts, business accounts have higher transaction limits in both instances.
Here is a quick recap of the differences:
Personal Venmo Accounts
- Intended to support personal transactions only
- Imposes weekly limits on both verified and unverified accounts
- Does not charge transaction fees like business accounts
Business Venmo Accounts
- Intended to support the commercial needs of businesses
- Imposes weekly limits on both verified and unverified accounts
- Charges transaction fees that range between 1.9% and 2.29% plus $0.10
Benefits of Setting Up a Venmo Account For Your Business?
The benefits of setting up a Venmo account for your business range from the ability to start processing payments instantly, to low-cost payment processing, an alternative wallet for customer funds, and more. Here is a closer look at some of the key benefits.
Instant Payments
By setting up a Venmo business account, you can immediately start receiving payments from your customers.
Social Presence
Businesses that have Venmo receive additional exposure to Venmo users through the Venmo feed.
Other Benefits of Having a Business Venmo Account
Venmo for Business also gives businesses the ability to accept payments directly through their QR code through the Venmo app.
How to Open a Venmo Business Account?
To open a Venmo business account, you first need to open a personal Venmo account. You can either open a personal account at the same time that you register, or you can register separately. This would mean you open Venmo for business as an existing user of Venmo.
After your personal Venmo is activated, you can navigate to the menu option “Create a business profile” in the drop-down menu on the “me” tab. You will then need to follow the steps, provide the required information, and complete the account registration.
How Much Is It to Set Up a Venmo Account For My Business?
There is no fee to set up a Venmo for your business. That said, there are transaction fees that you need to consider when processing payments. The specific fees vary depending on the type of transaction you are processing, they include a basic 1.9% fee, a 2.29% fee for contactless transactions, and up to a 3.49% fee for card-not-present transactions when credit card information is inserted manually.
Frequently Asked Questions
Below are a few of the most common questions we receive from people on this topic. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
Is Venmo for Business Free?
Yes, Venmo for business is free to set up. But, there are transaction fees that apply to Venmo for business transactions. The specific transaction fees vary, depending on the type of processing method being used. These fees range from 1.9% for standard processing, 2.29% for contactless, and 3.49% for card-not-present transactions.
Can Venmo Be a Business Account?
Yes, Venmo can be a business account. Venmo offers an immediate solution to local US businesses seeking payment processing, digital wallets, and an alternative way to hold customer funds. That said, to open a Venmo account, the owner must have a personal account registered with Venmo already.
Do Venmo Business Accounts Cost Money?
Yes, Venmo business accounts cost money to operate. This is because Venmo charges business transaction fees for every incoming transaction. The specific transaction fees vary from 1.9% to 3.49%, depending on the method of payment that is used by the business to capture the credit card information.
Ready to Open Accounts With Banks in the USA?
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