Can we talk about Venmo?
Venmo just made some announcements about their platform. Some effective immediately, some to take place in the near future. I was WAITING for these changes to take place, because in my world, there are very few, if ANY payment platforms that don't ding you for a fee.
A few have some work-arounds, and I can always discuss that with any potential new clients, but if you are using Venmo for collecting payments for goods or services, get ready to pay.
Effective immediately, you can now select a public, friends, or private setting for your friends list, and opt out of being seen on the friends list of other Venmo users. Review and manage your privacy controls by going to Settings>Privacy in the Venmo app.
Now to the good stuff. Effective July 20, 2021 users who receive payments (ex, I own a doggie day care and I collect payment from my clients thru Venmo) who are identified as sellers of goods or services will be charged a seller transaction fee of 1.9% + $.10
I did a little research and also found out that PayPal is increasing their commercial fee per transaction to as high as 3.9% + a $.49 fixed fee. OUCH!!! This will be effective on August 2, 2021.
I find the Venmo change significant because I knew this was coming and I know COUNTLESS people who use Venmo to receive payment for their business and like all things that seem too good to be true, the no-fee Venmo collection was just that. Too good to be true.
I myself never use instant transfer, but if you do, know that the fee for instant transfers will be 1.5% per instant transfer ($.25 minimum fee, $15 maximum fee). With a valuation of 38 billion, it's crucial that Venmo stays profitable. I joke, because this is just par for the course. All the payment apps are competing for your business. I myself love Venmo and will keep using it. Too many businesses were using Venmo incorrectly (violating their terms) and this is how they need to respond, but dang if it isn't the easiest thing in the world to use. Plus it's a verb now!!! I'll Venmo you for that :-)