Initially designed for person-to-person payments, Venmo has grown considerably over time. Now, you can not only pay your bills but also do business with the platform through the Goods and Services option. It allows you to accept payments for goods and services on Venmo, but you should verify your account for these purchases. This applies to both business profiles and personal profiles. However, the Goods and Services feature on Venmo can sometimes be frustrating when it stays open constantly. A 1.90% of the total amount plus $0.10 is deducted from your payments, and Venmo covers this transaction with Venmo’s Purchase Protection Program. So, let’s learn how to turn off Goods and Services on Venmo. Here is a detailed guide to help you find and disable its toggle in just a few steps.
About Goods and Services on Venmo
It’s essential to understand the Goods and Services feature on Venmo to know if you should turn it off on your account. So, let’s start with the basics. Venmo offers two profile options to businesses and customers: business profile (for sellers only) and personal profile.
As a customer, you can use Venmo to pay an authorized business profile or tag a personal profile for goods or services. You can do so through the Venmo Debit Card for those companies that accept this payment method. Alternatively, you can pay them via any Venmo-approved mobile website or app. Some buyers also use in-store QR codes to make payments.
Venmo covers any transaction made to the seller’s business profile through Venmo Purchase Protection. However, a certain fee applies to the payment amount, which only the recipient seller has to pay.
If you’re initiating a transaction to a personal profile, you can toggle the Goods and Services option to classify the payment as a purchase. Venmo’s Purchase Protection covers this amount too, and it deducts the fees accordingly. Venmo identifies this payment as the recipient’s income to assist the tax process. If the total amount is more than $600 annually, the company will issue a Form 1099-K for U.S. taxpayers.
The Goods and Services feature on Venmo was introduced in 2021 as an extended payment method. It allows Venmo users to buy and sell goods and services with other users for personal reasons or business purposes. This option is ideal for making payments outside of the conventional business system.
When a customer enables the toggle on Venmo’s payment note, it informs the company that they’re paying for goods and services. A small fee of 1.90% of the total amount plus $0.10 is charged to the seller, which deducts automatically.
After that, this transaction becomes eligible for Venmo Purchase Protection Program’s coverage. This means the buyer and seller will be protected if things go south with the payments.
Let’s discuss how the feature works for each party below.
How Can Buyers Use Goods and Services on Venmo ?
Suppose you’re interested in a table set you saw on a local online marketplace. You can easily buy it by telling Venmo you’re making the transaction for a product. Simply turn on the Goods and Services option in the app’s payment note, and you’re done!
Let’s say you don’t receive the table set, or it arrives damaged. Or, something wrong can happen with your transaction. In any of these cases, turning on the Goods and Services feature will help you qualify for a refund for the purchase.
How Can Sellers Use Goods and Services on Venmo?
You can send anything on Venmo. Suppose you’re selling concert tickets that you accidentally bought. Once you get leads for potential buyers, you can ask them to turn on the Goods and Services toggle in the app’s payment note when sending the payment.
The company will charge the fee from the total payment and provide you with coverage. This way, you and the buyer will rest assured that your payments are protected with the platform. Even if the buyer claims that your item didn’t reach them, you can provide shipping documents to prove that you fulfilled the order, preventing you from financial loss.
Should You Use Goods and Services When Sending Money To Friends and Family?
You don’t have to use Goods and Services on Venmo when transacting with your friends and family. It will save you the fees that Venmo deducts on goods and services payments. So, ensure this feature is turned off on your app before using your Venmo Balance, debit card, or bank account to pay your loved ones.
Let’s break down the easy steps to turn it off below!
How to Turn Off Goods and Services on Venmo
It doesn’t make sense to use the Goods and Services on Venmo to make personal transactions. But what if you accidentally enable the feature? Venmo will cater to your transaction as a business dealing and deduct the fee. That’s a bummer, no? It’s wise to know how to turn off Goods and Services on Venmo when making personal payments. You can do so on the payment note step when transferring the money.
Follow these steps below.
Step 1: Log in to Your Venmo Account
Let’s say you want to transfer an instant loan to your friend. You’ll have to sign up on Venmo to make an account.
Use the email ID and password you entered into the app when signing up to log in to your account and initiate a transaction. The app may also ask you to verify yourself by sending a code to your contact number. Enter it in the app to log in.
Step 2: Select Pay or Request
Now, tap the Pay or Request option from the top-right corner of the app’s screen. You will then have a list of your Venmo accounts with whom you transacted previously.
Step 3: Choose the Recipient
The next step is to choose the person you want to send money to. Find them and tap on their name. The next screen will display the payment form for that person. The best part? You can choose multiple people simultaneously to send money.
If you’re using an iPhone, tap on every recipient’s name and select Done to proceed. On your Android, press on the first recipient’s name for a few seconds and then choose more. Tap Done.
Step 4: Enter the Amount
Now, add the amount you want to transfer. It doesn’t have to be a whole number since Venmo lets users send payments in decimals. Add a note in the “What’s it for?” section describing what the transaction is for.
At this step, you can also choose who can see your payments and who does not. Public means everyone can view your transactions. If you want to hide them, tap Friends to make your payments friends-only or Private to make them private.
Step 5: Disable the Goods and Services Toggle
Now, look for the Goods and Services on the Venmo option, represented as Paying for a good or service?
Tap the toggle next to it to disable this option if you’re making a personal or non-business payment. This option is available every time you initiate a transaction.
Step 6: Choose Pay
Finally, choose Pay to send the amount to the recipient’s Venmo account. They will receive the amount instantly without getting any Goods and Services fee deducted from the total amount. And that’s it — you have successfully turned off Goods and Services on Venmo!
What if You Accidentally Make a Goods and Services Transaction on Venmo?
Many Venmo users intentionally or unintentionally keep their Goods and Services toggle on all the time. Some even make their personal transactions with this option turned on, resulting in a fee deduction from the total amount. We can also call Venmo’s app design responsible, as many users overlook the Goods and Services option.
So, if you accidentally make a personal transaction with the Goods and Services option turned on, don’t start sweating. Instead, instantly contact Venmo’s customer support team after tapping the Pay button. Doing so will increase your chances of changing the transaction and getting the fee refunded.
Remember, the recipient can’t submit a complaint to Venmo about this mistake. Only the sender can do that. Even if the payment’s recipient tries to contact Venmo for an accidental Goods and Services transaction, they will still require the sender’s consent to change it.
Before you reach out to Venmo’s support team, ensure your case is strong and backed by evidence to increase your chances of a positive response. Also, stay clear and deliver your issue to the representatives properly. Hopefully, it will help you change things in your favor!
How Long Does It Take To Remove Tag?
If you’ve accidentally made a payment with the goods and services tag on and contacted Venmo’s customer support then it’s important to note that there is no guarantee that Venmo will be able to rectify the situation. However, for the best chance of a positive outcome you should contact them immediately after you have sent the transaction and fully explain that the payment was not for the purchase of goods. It’s also a good idea to contact the recipient of the payment and make them aware that this has happened. If there is a positive outcome then it will typically take between 1 and 5 business days to rectify.
Venmo allows sellers and buyers to trade goods and services on the platform and make transactions. If you’re a seller, you will be eligible for this feature by registering as a business profile. Customers must make a personal profile to buy goods or services.
Venmo charges a small fee for using Goods and Services on Venmo, which is 1.90% of the total amount plus $0.10 deducted. To make personal transactions instead of business, you must know how to turn off Goods and Services on Venmo.
The process is easy. You will have a Paying for a good or service? option in the payment note. Simply turn the toggle off before tapping the Pay button, and you’re good to go!
The image featured at the top of this post is ©Piotr Swat/Shutterstock.com.