Venmo question

[sam_gordon]

I know Venmo recently put a change in so they withhold a fee if you select "business transaction" as opposed to "personal transaction". BUT, I can't see where this is. I'm about to get a bunch of payments from people and want to make sure they use the personal side so there's no fee taken out.

Thank you!

 

[Luv Bunnies]

From my understanding, it has to do with how the person paying classifies the payment. For example, if they write “plumbing services” in the comment section, Venmo will flag it as a business transaction. If the person just writes “thank you” or “reimbursement” or selects one of the non-business related stickers, it will not be further scrutinized.

 

[sam_gordon]

From my understanding, it has to do with how the person paying classifies the payment. For example, if they write “plumbing services” in the comment section, Venmo will flag it as a business transaction. If the person just writes “thank you” or “reimbursement” or selects one of the non-business related stickers, it will not be further scrutinized.

So there's not a checkbox? Venmo will basically guess based on what the payer puts in the notes?

 

[Luv Bunnies]

So there's not a checkbox? Venmo will basically guess based on what the payer puts in the notes?

I think that’s how it works. Someone can correct me if I’m wrong. Venmo’s algorithm will search for certain verbiage in the comment section. I always just write “thank you” when I pay my stylist for a haircut.

 

[lifesavacation]

I just sent a venmo for services and the vendor told me: please do not select/toggle "turn on for purchases". I think that flags it as needing sales tax or a small fee is charged.

 

[GreatLakes]

Based on this FAQ you would have to have created a business profile in addition to your personal profile for the taxable witholdings to kick in. That being said Venmo might have algorithms that attempt to find people using personal accounts for business purposes but unless your use patterns are in danger of being flagged I wouldn't worry too much about it.

 

[sam_gordon]

I just sent a venmo for services and the vendor told me: please do not select/toggle "turn on for purchases". I think that flags it as needing sales tax or a small fee is charged.

That's what I'm looking for. I've done a dummy transaction, but don't see that choice anywhere (I'd like to tell my friends where to look for it).

Based on this FAQ you would have to have created a business profile in addition to your personal profile for the taxable witholdings to kick in. That being said Venmo might have algorithms that attempt to find people using personal accounts for business purposes but unless your use patterns are in danger of being flagged I wouldn't worry too much about it.

Since I see the icon for "Create a Business profile", I'm going to assume I just have a personal one. BUT, I'm assuming that's what my wife has also, and she had another mom send her money to reimburse for a plane ticket and the fee was withheld. It was only $6, so we didn't bother fighting it.