Venmo’s New Business Transaction Fees and What You Need to Know

When Venmo launched in 2009, the “fast cash” app aimed to provide a solution to splitting the bill with your friends, whether it was going out to dinner, going to the movies or catching a concert together. But as the popular app evolved, businesses started to take notice. For some businesses, the app has become another way to accept customer payment.

Apps like Venmo and PayPal thrived through the pandemic, becoming popular contact-less payment options when customers visited their favorite shops. Venmo noticed the sharp rise in the number of businesses using their app and this month they made an announcement. Users who receive payments that are identified by senders as payment for goods and services will be charged a seller transaction fee of 1.9% + $0.10.

While Venmo pushes this new policy, it is important for business owners to take a step back and think about how these seller transaction fees compare to other forms of payment and whether or not the cost is worth it.

For instance, credit card acceptance programs like OTM Payments’ CardX Program offers ZERO fees when accepting credit cards as a business. This card-brand approved solution allows for the merchant to pass along all credit card transaction fees to customers choosing to pay using a credit card. Merchants keep 100% of every credit card sale and only pay transaction fees for debit card transactions. More and more businesses from a variety of industries have pivoted over to this model without significant pushback from customers. Other traditional credit card processing solutions also offer competitive rates. The best way to determine if there are opportunities to save on credit card fees is to take advantage of a complimentary side-by-side cost analysis. This will reveal the true cost of accepting non-cash payments and highlight areas for greater savings.

As a family-owned business, we understand the importance of keeping operating costs low and value high. We offer unique, compliant programs with these objectives in mind. To learn more about our cost-effective credit card processing solutions, reach out us at 732-230-7702 or send us an email at [email protected].

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Copyright © 2022 - On The Mark Payments, LLC is a registered ISO of Wells Fargo Bank, Concord, CA. On The Mark Payments provides electronic payment processing services to merchants throughout the country.

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