Venmo is one of the financial mobile P2P apps that have lots of features for sending and receiving money from families and friends.
All the transactions carried out on Venmo are fully secured by encryption networks.
To use Venmo, you need to have an account with Venmo which will enable you to send and receive money.
According to Venmo, all transactions made on Venmo are free but in reality, some people get charged after receiving payment into their Venmo account.
Why Is Venmo Charging Me A Fee To Receive Money
There are two reasons why Venmo may charge you when you receive money in your account.
The Payment Is Marked As Goods And Services
If your creditor or the person sending you money tags the transaction as paint for goods and services on his end, when you receive the money, Venmo will deduct 1.9% charges from the amount that was sent to you to cover Purchase protections.
The only way to get out of this is to tell your creditor to toggle off Purchase protection anytime they want to send money to you. When this is done, if they send you money it will be categorized as Family and friends and your money won’t be anytime they send you money.
When Your Account Is A Business Account
If your Venmo account is not personal or it is a business account, any money sent from another account to your account will be marked as payment for goods and services. This means that fees will be deducted from your account anytime you receive payments to cover Purchase Protection
Purchase protection helps to secure the buyers and sellers from fraudulent activities like not getting what you paid for or buyers disputing that they didn’t receive the item you sent to them.
How Do I Avoid Venmo Fees When I Receive Money
To avoid Venmo fees when you receive money, kindly inform your creditor not to tag payment as Goods and Service, this way you won’t be charged for Purchase protection when you receive money.
Another way is to use a Venmo personal account to receive money. If you want to use your Venmo account for receiving funds from family and friends, then open a personal Venmo account.
For business accounts, there is no way to escape the charges because all payments to your Venmo business account will be marked as Goods And Services.
The reason why Venmo charges when you receive payment is that the payment was tagged as Goods and service.
If the payment is tagged as Family and friends you won’t be charged when you receive payment.
Also, Business accounts are charged a fee of 1.9% for purchase protection, this is to ensure that the merchant and shopper are safe from scam and each of them go back happily.