FAQ: Venmo Chargebacks

Ready to learn more about how you can prevent chargebacks with Chargeback Gurus? Schedule a demo with us here: https://hubs.ly/H0mgh-T0 Venmo debuted in 2009 as an app to facilitate peer-to-peer (P2P) payments and has grown to exceed 40 million people. It works by allowing users to fund their Venmo accounts with a bank account, debit card, or credit card, so that they can then transfer money with other Venmo users. Recipients of Venmo payments can transfer funds from their Venmo account to their bank account. Because Venmo has grown in popularity in recent years, some merchants have decided to start accepting it as a form of payment. Unfortunately though, Venmo transactions can turn into chargebacks. Additionally, it's against Venmo's terms of service for merchants to accept payments for goods and services under the normal Venmo P2P system. Because of the demand for it, integration with Paypal or Braintree allows merchants to accept payments directly from Venmo users. Unfortunately, wherever there are new forms of payment, fraudsters work to develop new ways of taking advantage of these new systems. For Venmo, the most common type of fraud that merchants could encounter would be a fraudster using stolen payment credentials to open up a Venmo account. This could also result in chargebacks, which merchants should always seek to protect themselves from. For merchants, a general rule of thumb is to never accept payment from customers via Venmo's P2P payment system. Not only is it against Venmo's terms of service, but there is no protection from fraud for merchants in this system. With the merchant portal also comes features like CVV and AVS verification that merchants should use to shield themselves from fraud and chargebacks. Merchants who experience a high volume of chargebacks and fraudulent transactions may choose to outsource chargeback management to a company like Chargeback Gurus, who can ensure that revenue loss is being prevented with expert knowledge and care. To see how Chargeback Gurus can help you, schedule a demo with us here: https://hubs.ly/H0mgh-T0 Read the article: https://www.chargebackgurus.com/blog/venmo-chargebacks ©Chargeback Gurus 2021 Production: Emily Woodward Narration: Phil Claffey