Venmo recently sent out an email to all of its users stating its changes in transaction policy. The new policy will go into effect July 20, 2021. This policy says users who receive payments that are identified by senders as for goods and services will be charged a seller transaction fee of 1.9% + $0.10. A lot of small business owners use this platform to receive money in exchange for services.
What Venmo has done has flagged down users in the past for business transactions on a non-business account. As a result, user’s accounts become suspended for an undisclosed amount of time. The platform will halt the user’s account leaving them no other option to get paid digitally. This is the primary account of the business owners. Everyone did find a way around this by using emojis in the comment box.
The New Venmo Policy Broken Down
Venmo is now beginning to put its foot down on those trying to avoid the seller transaction fees on Venmo. Certainly, this is understandable for the platform because they also need to make their money. However, Venmo will ask senders if the money that they’re sending is for “goods and services.” If the sender selects yes, the seller (which is you) will be charged a seller’s transaction fee.
Venmo will now charge you for each transaction that you make. Before, users were only charged to withdrawal money from the app. Now, if the seller that’s sending you money confirms that it’s for a particular good or service (i.e. haircut, lash appointment) you will be charged 1.9% + $0.10. So, this could affect even casual users of the app like you and me. Yes, we could sit there and keep on putting emojis in the boxes but eventually, it will catch up. Now with more businesses accepting Venmo as payment, it has become a universal way of purchasing goods.
What are your thoughts on the recent policy change at Venmo? Let us know in the comments below!
This article was originally published on GREY Journal.