Venmo Goods and Services: A Complete Guide

Venmo is a popular money transfer app known for splitting bills with friends and sending quick payments. But did you know you can also use Venmo for buying and selling goods and services? This option comes with some advantages and disadvantages, especially regarding fees. Let's dive into everything you need to know about Venmo goods and services.

Read This Before Using Venmo Goods And Services

Buying with Venmo Goods and Services

When you pay someone for a good or service on Venmo, you can choose to mark the transaction as "Goods and Services." This offers peace of mind through Venmo's Purchase Protection Program. If you don't receive the item as described or the service isn't delivered, you may be eligible for a refund.

Who Pays the Venmo Goods and Services Fee?

Venmo Goods and Services protection comes with a fee. The seller will be charged 1.9% of the transaction amount + $0.10 for the Purchase Protection coverage. This fee is automatically deducted from the total amount the seller receives.

Selling with Venmo Goods and Services

As a seller, accepting payments with Venmo Goods and Services allows you to reach a wider audience and offer buyer protection. However, keep in mind the fee that will be deducted from your earnings.

There are two ways to receive Venmo payments for goods and services:

• Venmo Business Profile: If you frequently sell things or offer services, consider signing up for a Venmo Business Profile. This profile offers features specifically designed for businesses, and fees are typically lower than for personal profiles.
• Goods and Services on Personal Profiles: You can also enable the "Goods and Services" option on your regular Venmo profile for occasional sales. Just remember that the standard fee will apply.

How to Turn On Venmo Goods and Services

Venmo Goods and Services aren't actually a separate feature to turn on or off within your profile settings. Instead, it's an option that appears during the payment process itself. Here's how it works:

1. Open the Venmo app and start the process of sending money to someone.
2. Before you hit "Pay," you'll see a note section and potentially a toggle or slider labeled "Turn on for purchases" or something similar.
3. If you're buying something and want the purchase protection, slide the toggle to the on position (usually indicated by a green color). This enables Venmo Goods and Services for that specific transaction.

When you enable this feature, you're essentially informing Venmo that this payment is for a good or service, and the seller will incur a small fee. You can choose to turn it on or off depending on the situation.

Alternatives to Venmo Goods and Services

If you're frequently buying or selling and want to avoid fees, there are other options:

• Personal Payments: If you're buying from a friend or someone you trust, you can choose not to mark the transaction as "Goods and Services." This way, no fees are incurred, but there's also no purchase protection.
• Other Payment Platforms: Platforms like Paypal or dedicated selling apps may offer lower fees or features more suited to frequent transactions.

Conclusion

Venmo Goods and Services can be a convenient way to buy and sell with some buyer and seller protection. However, the fees can add up. Weigh the benefits against the costs and consider alternatives before using this option. Remember, clear communication and trust are still important when buying or selling on Venmo, regardless of the "Goods and Services" setting.