![]() It remains to be seen how Venmo’s new fees will affect small merchants, who have less than a month to prepare. ![]() Venmo’s new system imitates the approach already in place at Paypal, which acquired Venmo in 2013. In a blog post published on Monday, the company noted that new payment protections will mean sellers are entitled to protections in cases where, for instance, a buyer claims they didn’t receive something they'd paid for but the seller can prove they sent it. Venmo argues that the new system is meant to enable protections for transactions between buyers and users who may only sell goods and services occasionally. The change has frustrated sellers, some of whom have taken to social media to complain about the changes, accusing the company of trying to boost profits by pushing fees onto people with side hustles and small businesses. In the past, Venmo has suspended or terminated personal accounts suspected of selling goods and services now it seems to be looking for ways to make money from these sales. Some of these sellers seem to think Venmo’s new feature is less about convenience and more about a crackdown. what the fuck is with all these new and raised fees?! They are just as bad as the crypto market now! As if they don't make enough money already?! Absolutely disgusting.- SYNTHWERK June 27, 2021 But others are considering other options, like urging customers not to tag transactions as “goods or services.” Some may ditch Venmo altogether and turn to other payment apps.įuck and fuck Time to find a new way to process transactions. Some might bite the bullet and accept the new fees. ![]() Now, sellers are trying to figure out how to adapt to the new rules. But it also assigns a lot more responsibility to sellers and represents a move away from the casual nature long associated with Venmo transactions.įor small businesses and people with side gigs who have become dependent on Venmo, the policy changes complicate their transactions - and will potentially cost them a lot of money in new fees. The new user agreement takes effect on July 20 and gives buyers on Venmo more power. If a customer doesn’t receive what they paid for or if it’s significantly different from what they ordered, Venmo may step in and issue a refund. The Venmo Purchase Protection Program, as explained in Venmo’s updated user agreement, will require sellers using a personal account to maintain documentation about sales. “As Venmo has introduced new experiences, we’ve also seen increasing consumer demand in the market for a safe and easy solution that enables people to buy and sell other items or experiences that may fall outside of a traditional business setting,” a spokesperson for the company told Recode. Now, sellers are trying to figure out next steps, and some are considering leaving the app for good. But sellers who will be impacted by these new rules say Venmo is hurting their relationship with their customers and making it more expensive for them to operate on the platform. ![]() Venmo says its new system is meant to protect buyers and sellers. Certain purchases made through Venmo Business accounts already have access to this program. Doing so would mean that Venmo will automatically deduct 1.9 percent of the transaction, plus 10 cents, from the money sent to the seller, and the buyer will be eligible for Venmo’s Purchase Protection Program. In other words, this lets a buyer flag a commercial transaction with a seller who doesn’t have a Venmo Business account. The company recently told its users they’ll soon be able to add a “goods and services” tag to payments sent to other personal accounts (this would differentiate these payments from personal financial transactions, like reimbursing a friend for dinner). The new model won’t affect everyone, but if you’ve been using your personal Venmo account for your side hustle, it’s about to get more expensive.
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