You may have considered upgrading to Business Venmo if you already have a personal Venmo account. But is it truly worth it? Whether you’re a business or an individual, you’ll want to know the distinctions between the two types of Venmo accounts discussed here.
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Venmo business accounts and personal accounts are both great for making transfers. However, depending on your needs, the better option will vary from person to person.
For someone who owns a business, the business account would be more valuable than the personal account because of the several advantages a business owner would enjoy. Also, it would be great for people who want to separate their personal and business transactions.
About Business Venmo
When opening a Venmo account, you can choose the business Venmo option. It is meant for people who want to use the account for business transactions. This account helps facilitate your client experience through features like customer insights, easy payments, advertising, etc. Millions of people make use of Venmo business successfully for their businesses.
The unique thing about having this business profile is that you will also have a personal account. You can use the personal account for other things that do not involve business. Creating a business account will not restrict you from being able to do things that people with personal accounts can do. Rather, you will have access to all the basic free personal account features plus added tools to help your business.
Additionally, Venmo could be beneficial for people who are just starting a new business and do not have many customers. Instead of only allowing you to make business transactions with your clients, it can help you to get more clients. This particular type of account gives you a convenient and cheap way of accepting payments compared to many bigger payment platforms. If you manage your account right, you will be up to date on your sales taxes and have a smooth relationship with the IRS with no risk of Venmo shutting down your account.
Easy to Set Up
First, for people who already have a Venmo personal account, there is an option for a business profile in the Venmo app. When you click the option, you must fill in some necessary fields. You might also be required to provide specific documents that can be used to authenticate your business and confirm your identity. After this, you will be all set.
On the other hand, people who are entirely new to Venmo need to download the app. Then proceed with opening a business account. While opening the business account, you will have to open a personal account, too, as one cannot have only a Venmo business account. You can easily switch between the two accounts whenever you want.
Asides from usual payment, you can allow customers to add a tip with Venmo business. Unlike a lot of payment platforms that charge sellers heavily and exclude this feature, Venmo allows customers who are impressed with your service or product to express it by leaving you a tip. This is a very attractive and useful feature for business owners.
When you have a disagreement or dispute, you can quickly resolve it via the Venmo app. If you involve Venmo in your dispute, they try to resolve it by asking for relevant documents. Their support team mediates and meticulously tries to sort the problem fairly. However, the process may be a little slow, so you will need to be patient if you ever find yourself in such a situation.
Enhanced Payment Method
Venmo offers contactless payment, which is a feature a lot of business owners need post-COVID. With this feature, your customer can make payments without any in-person meetings. All that is necessary is for you to scan your customer’s QR code, or they scan yours to make a transaction. There are also return policies in place that don’t involve physical involvement. According to the policies, Venmo can do a partial or full refund, depending on the situation.
About Personal Venmo
Personal Venmo accounts allow you to send money to your friends and family or request and accept payments from them.
They allow you to make these transactions in a social and friendly way by allowing you to send notes and emojis with money requests or see a friend’s transaction history and like it.
You can also use the account where you want to split a bill with several of your friends.
Unlike other payment methods, a Personal Venmo account does not deduct money for maintenance or take fees when you receive money. It is also free to use bank accounts to make transactions, but they charge for credit card transactions. However, the fee which they take is meager. Other payment apps also take these fees and sometimes more for credit card payments.
Debit and Credit Card
With the debit card linked to your personal Venmo account, you can pay for several things and use your Venmo, where a debit Mastercard is accepted. Also, you may get cash back when you use your debit or credit card sometimes. You can see all the activities made using the card through the app, and if your card gets compromised, you can easily disable it through the app.
A Venmo personal account can help you get started in crypto. Using the app, you can start buying crypto for just $1. You can get Bitcoin, Litecoin, Ethereum, or Bitcoin cash. Though there are risks that come with crypto, there are also benefits. Since you do not need significant money to start, it may be worth trying. You can also sell your crypto on the app or just hold it.
Fast and Stress-Free
Using this account to make payments is very easy, which is why people use it a lot. Once you download the Venmo app, you can register in a few minutes and start using it. You can also carry out instant transfers, but they attract a small fee. However, it would be free if you could wait a few days to get your money.
Similarities Between Business and Personal Venmo
When you open a business profile as a sole proprietor on Venmo, your payment methods will be linked to your personal and business profiles. This means that your transaction limits will be the same, and any transactions conducted with either account will count toward the limit of the other. In this regard, both accounts are the same unless you decide to create a registered business profile.
All Parties Must Have Venmo Accounts
At its core, Venmo is a social payment platform. Personal accounts allow you to request money from and send money to your friends in a fun and non-awkward way. To achieve this, you and your friends must have Venmo accounts.
In the same vein, a business profile will allow customers to make contactless payments while integrating the social feature as well. To achieve this, the business owner and the customers must have Venmo accounts. In this regard, irrespective of the kind of profile, all customers involved in a Venmo transaction need to have Venmo accounts.
Differences Between Business and Personal Venmo
One is Dependent on the Other
A significant difference between a business and a personal Venmo account is that you need to have a personal account to create a business profile. However, you do not need a business profile if you have a personal account, as not everyone uses Venmo for business. The business profile is only for individuals who use Venmo to accept payments for their business and need the extra features the business profile provides.
A Venmo business account incurs seller transaction charges on the business owner’s end. Whereas for regular customers and personal accounts, Venmo is free of charge except in the case of instant transfers or where an individual tries to pay for a transaction via their credit card rather than a bank account or from their Venmo balance directly.
Venmo payments are free in most cases, easy to make, and fun in that they have a social side to them. However, business profiles are a little different in that they optimize Venmo for use by owners of registered businesses or small businesses.
They offer features like customer management, insights, and free advertising by allowing customers’ friends to see where they made purchases. This is why a Venmo business profile is so popular among entrepreneurs.
However, if you are starting a small personal business, you may want to avoid seller transaction charges that a business Venmo account incurs. In that case, you should go for a personal account. However, if you need to scale, you must create a business profile or move to a platform specifically for business transactions.
Refusing to do this may put you in trouble with the IRS or get your Venmo account closed. Nonetheless, personal accounts are adequate, helpful, and fun for regular Venmo users.
Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.