As an event pro, invoicing clients is crucial to running a successful business. With so many digital payment platforms, Venmo has become a popular choice for businesses – but is it a good one? Before you send another payment request, let’s look at the pros and cons of using Venmo for your business.
Tracking expenses
Venmo isn’t a payment software for businesses so keeping track of who paid you and what it was for can easily become a nightmare. Part of running your business is bookkeeping, and it can quickly get out of control leading to costly mistakes and frustration with your clients so you should stick to platforms that are meant to perform client payments and have reliable reporting to back it up.
Missing payment
Are you missing a payment… or did Nancy accidentally pay someone else? Paying someone else by accident is a real issue on Venmo, and their privacy policy advises users to only use the app with people they know and trust, which can be limiting if you’re trying to expand your client base. Yes, you can request payments directly, but we all know how notifications can be missed, and when a client delays payment things get messy, quick!
Cancellations
When you use a proper payment system your contract, invoice, and general business rules are right there for the client to see, understand and agree to. When someone pays you on Venmo, there is no safety net for what that payment is for – which means you have nothing to back you up if you need to charge a cancellation fee or any other associated fees later to the client.
Chargebacks and claims
This is a big issue for businesses on Venmo. You performed the service, and the client paid – but two weeks later you suddenly owe Venmo money because they refunded the client due to a claim they filed. Venmo holds the right to refund your client if they think a payment is not legitimate, even if you did in fact deliver a great service or product. True clients can do that with credit cards, but running your business on a payment platform increases the odds you will win that fight.
*At RPC if you ever encounter a chargeback or a claim we go to bat for you giving you better odds of winning your dispute! Venmo won’t do that!*
Look like a real business
When you first start your business, you need to run lean, and we totally get that! However, with tech, automation, and online safety running our daily lives, your business also needs to look legit from day one. That’s why RPC fees are so low, and we work hard to keep them that way. Even brand-new business owners can afford to send invoices, and contracts and get payments!
* Don’t forget, you get your first year FREE on Rock Paper Coin by using promo code RPCBLOG*
In short, Venmo is great…. but let’s leave it for paying your friends back for Taco Tuesday and Sunday brunch sessions and use Rock Paper Coin to run your business legitimately!
Take advantage of that free year by signing up here:
