With millions of users and a recent increase in growth, Venmo is one of the most successful money transfer apps in the United States. It’s commonly used to send money to friends and family.
When using Venmo, it’s common to come across occasional fees. However, one you might not expect is a fee charged to sellers or business accounts. Why does Venmo charge this fee? This article will answer your questions, so keep reading to learn more!
Why Did Venmo Charge Me A Seller Fee in 2023?
Venmo charges a fee of 1.9% plus $0.10 for each payment you receive on a business profile in 2023. A seller will also be charged a fee on their personal account if the sender marks the transaction as a payment for goods or a service. This can be disputed with customer support if it was a mistake.
Whether you use Venmo for business or not, there are various fees you should be on the lookout for, so keep reading to learn how to best navigate this app and its services.
How Do I Avoid Merchant Fees on Venmo?
If you have a business profile on Venmo, you will be charged seller fees for each payment you receive on that account if it’s $1.00 or more.
However, if you have a personal profile and receive a payment on it, you will only be charged the seller fee if the person sending you money marks the transaction as a payment.
You can ask the person paying you not to mark the transaction as a payment if you want to avoid the fee.
In addition, if Venmo suspects that the amount you received was a payment for goods and services based on phrases or emojis in the note that came with it, you may be charged a fee.
What Are Venmo’s Business Fees?
Venmo charges a fee of 1.9% + $0.10 for each payment received on a business profile. Aside from this fee, there are some other standard fees on Venmo you may come across.
For example, Venmo charges a 1.75% fee for instant transfers to your linked bank account. Also, there is a $3.00 fee for cash withdrawals from a Venmo debit card at most ATMs.
Further, there are no monthly fees or subscription charges for a business profile on Venmo.
Do You Still Get Charged Seller Fees on a Personal Venmo Profile?
Most payments you receive on your personal Venmo account won’t be charged a fee.
However, if you do get charged a seller fee on this account, it’s likely because the sender marked it as a payment for goods and services.
If this was done by mistake, you can ask the person who paid you to contact customer support, as Venmo will need their permission before they can change anything.
Can I Dispute a Venmo Fee if I Wasn’t Selling Anything?
If you were charged a seller fee on Venmo and you weren’t actually selling anything, you can contact customer support to explain the issue and they will do their best to help you.
To contact Venmo’s support team, you can email firstname.lastname@example.org, use the chat feature on the mobile app, fill out an online contact form, or call (855) 812-4430.
How Does Venmo Know If a Transaction Is for Goods and Services?
If you use Venmo for business, it’s best to use an authorized business profile.
On this type of profile, all payments you receive are considered to be for goods and services and you’re therefore charged a seller fee.
In addition, if someone pays you on your personal profile but they use the toggle to mark the transaction as a payment, Venmo will charge you the same seller fee as for a business profile.
To know more, you can also read our posts on whether you can set up automatic payments on Venmo, whether you need a card for Venmo, and whether Venmo uses Plaid.
Venmo charges a seller fee for all payments made to a business profile that are $1.00 or more. The fee is 1.9% + $0.10 for each payment made to you. Also, you will be charged a fee on your personal account if someone marks the transaction as a business payment.
If someone mistakenly marks a transaction as a payment and you get charged a seller fee, the person who paid you will need to contact customer support to resolve the issue. Venmo needs their permission in order to make any changes.