Venmo for Business: Is It Right for You?

What is Venmo for Business?

Venmo for Business allows small businesses to accept digital payments on the platform. Venmo for Business allows customers to:

• Send payments from their Venmo wallet
• Pay with linked bank accounts
• Pay with debit or credit cards
• Use a contactless card
• Use a digital wallet with Tap to Pay

When you sign up for Venmo for Business, you’ll also get a business QR code. Customers can scan this QR code directly from your phone to make a payment, or you can print it out and display it in a convenient place to make it even easier for them to pay. 

Venmo for Business transactions are PCI DSS compliant and secured with data encryption and fraud monitoring. 

How to get started with Venmo for Business

To get started with Venmo for Business, set up an account with the following steps.

1. Add a business profile to a personal Venmo account.

If you already have a personal Venmo account, open the app, tap your profile icon and tap Settings (the gear icon). 

Select Create Business Profile, and follow the prompts.

If you don’t already have a personal Venmo account, you’ll need to create one first in order to create a Venmo for Business profile. Here’s how:

1. Download the Venmo app, and choose the Business option.
2. Tap Sign Up.
3. On the next screen, choose Get Started.
4. Type in your mobile number, and tap Send Code.
5. Enter the four-digit code you receive from Venmo to verify your phone number, and tap Submit Code.
6. Enter your name and email address.
7. Create a password.
8. Tap Agree.

2. Select your type of business

You’ll be prompted to select either an “individual” or “registered” business when creating a Venmo for Business profile,

• An individual business is not registered as an LLC or other incorporated entity and taxes are filed with your personal social security number.
• A registered business is an LLC or other incorporated company that has its own Employer Identification Number (EIN), which you will need to select this option.

3. Set your business’s profile photo, display name and username

We recommend using the branding that appears on your other marketing materials as a profile picture. Your display name should also be your brand name, while your username can be something slightly different.

For example, a Business.com Venmo for Business would feature our recognizable b. logo and the display name “Business.com”, while our username might appear as @businessdotcom.

4. Add more details to your business profile

You’ll be asked to describe your business in a short bio of 155 characters or less, as well as to select a business category describing what your business does. 

You’ll also need to provide your business’s address. This should be the same address you used to register your business, if you’ve selected the registered business type in the step above.

5. Publish your Venmo for Business profile

When complete, tap the Publish button to create your business profile. You’ll be able to accept payments right away and, once your business is verified, will have full access to Venmo for Business services.

There are a few things to understand about verification with Venmo:

• Venmo can usually verify a business’s name, address and EIN automatically. If not, Venmo will ask you to send verification documentation.
• If you’re not verified automatically, you can start using your business profile. However, there will be limitations on your bank account transfers. 
• You’ll log in to both your personal Venmo account and your business profile using your personal account’s credentials. 
• You can create only one business profile.
• Venmo and Venmo for Business are currently available only to U.S. residents with U.S. bank accounts.

Pros and cons of using Venmo for Business

Consider these pros and cons when deciding if your business should accept Venmo payments.

Venmo for Business pros

Here’s what makes Venmo for Business an attractive option for small businesses:

• It has low transaction fees.
• There are no additional fees.
• The setup is quick and easy.
• There’s no need to get approved. 
• No credit check is required.
• New businesses can get started right away.
• Venmo is one of the most popular P2P apps.
• You can quickly transfer funds to a bank account.
• It’s available on Apple, Android and other mobile platforms.
• It allows for payments on the go.
• The social feed gives your business free marketing.
• It enables contactless payments.
• You can manually create and apply sales tax rates, if states require it.

“I’ve found it a convenient backup option,” said Shelly Allhands, a managing director at Evergreen Communications. “There have been instances when a customer didn’t have another card and was pleasantly surprised that I accepted Venmo. It simplifies the process by automatically tracking items and customer names and depositing payments directly into my bank account.”

Venmo for Business cons

Venmo comes with some drawbacks businesses should be aware. 

“Venmo has a slightly less professional feel than Square payments,” Allhands said. “For me, this is mainly because of its social-media-like interface and the ability for others to see your transactions.”

Here are some additional downsides to consider:

• It’s not widely used among people over age 35.
• You may miss out on sales from credit card users.
• Transfer limits make it unsuitable for high-volume businesses.
• It does not automatically include tax calculations.
• You can’t set up more than one business.
• Funds mix in a single Venmo account, so it demands more accounting attention.
• It’s limited to one person, with no option for co-owners.

Who is the ideal Venmo for Business company?

Venmo for Business is useful for all types of companies, but the following can especially benefit from it:

• Very small businesses: Venmo for Business is an excellent digital payment method for sole proprietors, independent contractors or another type of small business.
• Businesses with young customers: Young people are especially familiar with Venmo and expect easy payment options. If your business sells to young, tech-savvy people in the 16-to-35 age demographic, Venmo is a sensible payment option to offer.
• New businesses: Consider Venmo for Business if you are just starting a business and haven’t set up credit card processing to accept credit cards

Venmo vs. alternative payment options

Here’s how Venmo compares with other digital payment options:

Amanda Hoffman contributed to this article.