How To Set Up Venmo for Business – An Easy Guide

Most people only know Venmo as a peer-to-peer mobile payment platform. However, businesses can use Venmo too. It is one of the easiest ways for businesses to accept payments from customers quickly and securely. When you set up Venmo for your business, it allows you to tap into a large base of Venmo users. 

If you’re ready to start accepting Venmo payments, this article will walk you through the simple steps to set up your Venmo Business account. First, let’s see what exactly a Venmo Business account is. 

What is a Venmo Business Account?

A Venmo business account is a type of Venmo account designed for small businesses and entrepreneurs to accept payments directly through the Venmo app. This allows businesses to receive payment from their customers who use Venmo without any third-party interference. 

With this account, you can send invoices to Venmo users, track transactions, and even connect to e-commerce platforms. Venmo added this feature in 2020 in a bid to expand the payment service and accommodate more users. It makes it easy for businesses to manage payments and connect with Venmo’s large user base.

How to Set Up Venmo Account for Business

Creating a Venmo business profile is quite straightforward. The steps for setting up Venmo for business include:

1. Download the Venmo app
2. Create a Venmo Account 
3. Create your business profile
4. Allow tipping
5. Order a QR kit
6. Add a card or bank account

Now, let’s take a look at each step of the process in detail. 

Step 1: Download the Venmo app

First, you need to download the Venmo app. Go to the App Store if you have an iPhone or Google Play Store if you’re using Android. Search for “Venmo” and tap on the download button. Once it’s installed, open the app and get ready to set up your account.

Step 2: Create a Venmo Account

If you don’t already have a Venmo account, you’ll need to create one. Note that to set up a Venmo account, you need a U.S. phone number. Once you open the Venmo app, click on “Sign Up”, fill in your personal details like your name, phone number, and email, and then set your password. 

Afterwards, a verification code will be sent to your mobile number via text. Enter the code into the space provided to verify your phone number. Once that’s done, you have successfully created a Venmo account.

Step 3: Create Your Business Profile

After setting up your personal account, you can create a business profile. Tap on the menu (three lines in the upper corner) and select “Create Business Profile”. Venmo will ask for your business details such as the name of your business, the type of business, business description, address and profile image. Fill in this information carefully, as it will appear on your profile when customers pay you.

Additionally, you will need to verify your identity by providing details like your legal name, date of birth, address, social security number or individual tax identification number. You can also add your business website and contact details to your business profile. 

Step 4: Allow Tipping (Optional)

Venmo gives you the option to turn on tipping. This feature allows your customers to add a tip to their payment, which is useful for service-based businesses. To enable it, go to your business profile settings and toggle the “Tipping” option. You can even set a suggested tip percentage (15, 20, or 25 %) to make it easier for customers. 

However, note that turning on tipping doesn’t mean your customers have to tip you. It is their choice. 

Step 5: Order a QR Kit (Optional)

To make in-person payments easier, Venmo provides a QR Kit. This is a physical QR code that customers can scan to pay you. Go to the “Business Tools” section in the app and order your free QR Kit. This is especially helpful for physical stores or events, where customers can quickly scan and pay without hassle.

Note that only the first QR kit is free as the kits cost $14.99 subsequently.

Step 6: Add a Card or Bank Account

Lastly, you’ll need to link a bank account or card to your Venmo account to send money to other Venmo users or withdraw money. Tap “Payment Methods” in the settings, and choose to add a bank account or debit card. Venmo will guide you through the steps of entering and verifying your banking details. Once linked, you can transfer money from your Venmo account to your bank whenever you need to.

How To Receive Payments Using a Venmo Business Account

Once your Venmo business account is set up, receiving payments is easy. The funds go directly into your Venmo balance, which you can later transfer to your bank or card. Here are the ways you can accept payments:

1. Through Your Business Profile

Customers can pay you by searching for your business profile on the Venmo app. Once they find your profile, they simply tap “Pay,” enter the amount and confirm the transaction. It’s a simple and quick way to receive payments from Venmo users.

2. Using Your Business Website

If you have an online store, you can add Venmo as a payment option. To do this, enable PayPal Checkout on your website. Once integrated, the Venmo button will appear on your checkout page, allowing customers to pay via Venmo. If they use a mobile device, the Venmo app will open for them to complete the payment. If they’re on a desktop, they’ll scan a QR code with their Venmo app.

3. Scanning a QR Code In-Person

For in-person payments, you can display a QR code in your store. Customers can scan the code using their Venmo app to send payments directly to your account. If you don’t have the QR code displayed, you can show the code from your phone for them to scan. This is great for quick, contactless payments.

Benefits of Venmo Business Profile

Setting up Venmo for business comes with several advantages for businesses, both large and small. Here are some key benefits:

1. More payment options: With a Venmo business account, you can give your customers an additional way to pay. Many people already use Venmo, so offering this option makes it easier and more convenient for them to complete their purchases.
2. Instant access to funds: Venmo’s instant transfer feature lets you quickly access money from your business account. This is helpful for small businesses that need cash on hand to manage daily operations or buy inventory.
3. Increased exposure through social sharing: Venmo has a social element that allows users to share their payments with friends. When customers pay you, their friends might see it, giving your business more visibility and potential new customers.
4. Lower transaction fees: Venmo offers lower transaction fees compared to many other payment processors. With a fee of 1.9% + 10 cents per transaction, it’s a more affordable way to process payments than traditional methods.

Frequently Asked Questions about Venmo Account for Business

1. How do I set up a Venmo business account?

To set up a Venmo business account, follow the steps explained earlier in the article. Start by downloading the Venmo app and creating an account. Next, select the option to create a business profile and follow the prompts to enter your business details, including tax information. Finally, link a bank account or card to receive payments.

2. Is a Venmo business account free?

Setting up a Venmo business account is free, however, Venmo charges a processing fee of 1.9% + 10 cents for every transaction made to your business profile.

3. What is the difference between Venmo and Venmo business?

The main difference between Venmo and Venmo Business is their purpose. A personal Venmo account is for peer-to-peer payments between individuals, while a Venmo business account allows merchants to accept payments from customers. 

Conclusion

Setting up a Venmo business account is a simple way to start accepting payments from Venmo users. By following the easy steps in this guide, you can quickly get your business ready to receive payments. Venmo allows you to accept payments through your business profile, website, or in person via QR codes. 

Additionally, Venmo’s lower fees, instant transfers, and social sharing features make it a great option for small businesses looking to grow. With Venmo, you can offer your customers a fast and convenient way to pay.