Why you shouldn't be using Cash Transfer Apps for business transactions.
Cash transfer apps (such as Venmo, Apple Pay, and Google Pay) were designed to be used for personal payment transfers between friends and family, not for business use.
There are a few reasons you should try your best to not use a cash transfer app for business purposes:
- Not all of these apps have statements you can send us. Even if they do, the statement doesn't contain much information about the transaction. So we don't have much information to go off of when categorizing your transactions.
- If you use these apps for a combination of personal and business transactions, you are commingling. Not only does this make it difficult to do your bookkeeping (since we won't know which portions are personal vs. business), it can jeopardize your corporate structure if you have one.
- If you do use Cash Transfer Apps for business, but those apps are connected to your personal bank account, it’s like taking cash for services and putting it in your pocket. You will need to notify us of these business transactions so we can add them to your business books.
- The Venmo website itself explains that Venmo may actually reverse the payment after review if “you accept a Venmo payment from someone for a good or service.” It states explicitly that you cannot use Venmo to “receive business, commercial or merchant transactions, meaning you CANNOT use Venmo to accept payment from (or send payment to) another user for a good or service.”
We recommend using a cash transfer app designed for businesses, such as Paypal. Even though the functionality is not as nice, and there may be fees included, it’s a better choice for your business because it provides statements we can use to categorize your business transactions without you needing to list them.