STOP using VENMO and PAYPAL in your business to collect payments from Clients
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- čas přidán 10. 11. 2020
- Using the personal (no fee) version of apps like Venmo and Paypal to collect payments in your business is no good! This video gives you 3 reasons why you should stop using them and what some alternatives are.
Trust me, the 3% fees you think you are saving by using these "free" apps are not worth it.
This video is about a year old but Venmo can accept business transactions now and they take the 3% too. I only know this when I had someone pay me for photography services and Venmo recognized it as business transaction and snagged that 3%. They even sent me a QR reader that clients can scan and pay. I just need to look into if I can send out an invoice or not.
Who wants to pay fees??? I see how you are spinning it and I totally disagree with accepting it. I would prefer to pay NO fees thank you. You did not convince me.
Once a crisis hit you gonna wish you had your money in a real bank nothing it’s free in this world everything come with a price
Paypal has a business account option. I have been using it for over 25 years now and they have a feature you can download your transactions all year and Also Tax documents.
Businesses usually run on tight margins tax deductible or not that 3% is important and should be in small business owners pockets from the start and not be part of tax time calculations.
I’m an artist who is under the autism spectrum, thinking about creating a Venmo account for a while now, and I’m trying to figure out how to use Venmo or PayPal for receiving paying commissions. Honestly this kind of stuff just leaves me puzzled leaving me more questions than answers, so I’m trying to understand so this is all pretty much new to me.
Paypal has a business account that will give you a free credit card reader n you can send invoices n put exact item descriptions for the things you sell and automatically put your state sells taxes on the items you choose. But I still think they charge a percentage
Big porcentage
Paypal Charge 2.9% and you don't have to pay for the account monthly
@@providernation4500 hmm is that better than Venmo?
No, neither is any good 😕
@@SP.Addams venmo is 1.9% plus 10 cents.
Totally just seeing this! Found your tag in an email in my spam folder! Thank you!!! X
I've been using venmo and PayPal business accounts and haven't had any problems long as your numbers add up your good
So the title is misleading. The problem is using the FREE version of these apps. Not the business versions.
This might sound ignorant on my part but I’ve been using my personal free venmo account for my guitar teaching business for a couple of years. It sounds like I need to transition but how will I be able to transfer the old transactions into my business once I do that? What can the penalties be if I didn’t have a Venmo for business?
Would Venmo business works for keeping track ?
I want to give people multiple ways to pay for my repair service.
Which method or what service should I use ?
I need them to be able to pay via PayPal and or bank card or even zelle. I don't want to handle transactions my self.
I’ve been using the free Venmo for customer payments for my wife’s salon for the past year. If I change it to the business account now, will I be charged the fees for the previous transactions? And how do taxes work with Venmo?
No
Thank you so much well needed advice 👍🏽👍🏽👍🏽
Hi!
Sadly your free course is not coming up it says “it doesn’t exist “.😢
Could you send me the active link?
Anything that's sent for good and services they are taking a cut now. Friends and family is pretty stupid since if you're paying for "your half of dinner" is still goods. If you send your kids money, are they not using it for goods and services? I see them basically working to end this and start charging insane amounts for everyone. Bye Paypal.
Very informative! I did not know the credit card fee was a deductible. Here I am thinking I'm eating $3.00 per $100 in fees. Great job....👍
So, is the right thing to do to charge customers taxes for products and then maybe like a 3% service fee to cover those App fees??? Or can you not use that 3% as a deductible?
I’m a guitar teacher and the customer puts down what it’s for.
SO HELPFUL! I had no idea, thank you!
You're welcome! I'm glad it was helpful.
Stephanie I own a marketing business, would you be interested in doing an IG Live Interview with me sometime in the next week or so on this? :)
@@CloserStill Unfortunately, the next few weeks are going to be crazy insane with tax prep so I can't schedule anything additional right now. Maybe sometime in the future though. :)
You make it sound so easy.
My spider sense is telling me she either works for the IRS or is paid by the IRS.
nope!
@@stephanie-thacker quick response, OK she's clear. They never responded that fast lol
@@bellelysenko3498 LOL!! So true!
Thank you for taking your time to share this information 🙂
You're welcome!
This is probably really good advice but, why then does paypal personal give you the option to create a buynow button with the ability to give them different amounts and size selection? Paying for your share of dinner doesn't need to know which size you wear.
I'm with you. She's one of those people who are terrified possibly breaking a rule. I'll let them tell me they don't like the way I'm using the app, it's working great for me!
Because people can sell things too, not just businesses.
Any recommendations for mobile merchant’s service
So you dont suggest paypal business? They do a 2.7% fee but i have no idea how to do the state tax with this shipping to other states? Do we apply the states taxes we are in or where it goes?
Yes, Paypal Business is great. I don't think using the free, no-fee (personal) version is a good idea. Sales tax regulations are different in every state so I'd suggest you contact a firm who specializes in that if you need more assistance with that.
So for my business venmo should I send that money directly to my business bank account or can I pay myself directly from venmo and transfer it to my personal? Do you have more videos on venmo business accounting?
Best practice would be to have the money you receive be deposited into your business bank account and then withdraw funds from your business bank account to your personal account to pay yourself.
Thank you
What about child support or paying half of numerous payments like copays etc.
I'm creating a website for a non-profit organization and need to have a page for people to pay their membership fees and make donations. In the past I've used PayPal. What software do you recommend for this instead of PayPal or Venmo? Thanks in advance for any help you can provide.
Interested in an answer to this as well!
I would like to know as well.
I would like to know too
Shopify or square to collect payment it good for my first event ?
Everything you said is true but people living in 3rd world countries have no choice.
There is no such thing as a "Free Lunch".
what about E-commerce business? i sell products via my website.
Thanks for the overview.
No one want to pay fee fee fee.. paper fee ..under the min. monthly fee, machine rent monthly fee, electric fee. Bank is done..... Cryptocurrency is in!!! .... No fee is way better!!!!!
Using personal for 3 years
Over 20k sales through years
Ordered Venmo card and spending money from that card.
Do you have any advice as to not get your account flagged for suspicious activity?
How do you avoid the 1099? They report it to the IRS so they already know about it. Personally, I'd be worried about an audit coming soon.
@Cody Waggener But he said he did over $20k in three years. That's well over $600/yr. The new laws started this year so I'll bet he doesn't use Venmo anymore. I'll use Zelle instead.
@@DiversifiedMachinist Steal someone else's identity, silly
@@joeschmoe435 Can't believe I missed that. 🤯👌🏿
Thanks Stephanie!
Where are your location o need a bookkeeping # info..
The link to your course doesn’t work
So is the 3% a deduction for independent contractors?
Yes because there’s no standard deduction when filing as a 1099 IC
Would something like Shopify be better to use? Or Etsy?
If we don’t want to hire someone to do our bookkeeping is there a program that does it for us or do we still have to manually input the data?
Thank you!
Shopify and Etsy are great options if you are selling products, yes! As far as bookkeeping, even with a software like Quickbooks, there are still manual entries that need to be done so nothing is really 100% done for you unless you have someone doing it.
I have been making use of a platform called melio and its just awesome, they also sync with quickbooks.
4:14 - 4:29
The issue is you can’t eat what you don’t pay taxes on so it’s a mental game for “the little guy”
Good information. Thanks for sharing!
You’re welcome, I’m glad it was helpful!
+15133860766
+15133860766
I got $3k
Text him
Ill take cash over any other type of payment all day long!
What about paying my 1099 employee his paycheck through Chase Zelle quick pay ?
If your business bank account offers Zelle, yes, you can pay a contractor that way but remember, you will still need to track every payment and issue a 1099 after year-end.
Is zelle good
If you used paypal for a Business THE IRS will know and paypal will send you a 1099k to be added to your income tax
As do Cash app and Venmo.
Tough to follow without a list or two. Such as "avoid" and "better mousetraps."
Hello Stephanie. You had me thirty seconds in...
what would you suggest for donation?
A non-profit should operate the same as any other business in this aspect. I'd suggest accepting donations on a known donation platform or using QBO, Stripe, Square, etc.
@@stephanie-thacker thank you so much
Thank you
What would you recommend for Hairstylists?
There are a lot of great options like Square, Stripe, QBO, and you can even use the business version of Venmo!
New subscriber thanks
This is really great information! 👍
Thanks!
+15133860766
+15133860766
I got $3k
Text him
Venmo and PayPal both have business versions? Deposit it into your business account and it’s all on the statement. This information is all cap.
@3G Craftsman that’s it? No other details?
@3G Craftsman this is like being a lawyer an say your client is innocent with no evidence
Nah I like being a rulebreaker ;) Also you can comment within every transaction in Venmo, which allows you to make a note of what the transaction is specifically for.
My buddy told me. When a church is tax exempt. The gov is paying for the pastors expenses. Car insurance, car payment, gas, etc.
Hes telling me if the pastor files all those expenses, he gets 100% of it back when filing taxes. So hes basically telling me the gov is paying for his vehicle payment.
This doesnt seem accurate to me.
Unfortunately almost all public churches are a 501c3 tax deductible intity. Which means the government can control content and shut you down. I wish churches would rely on God more in trusting their finances and their attendees would give without worrying about tax deductions. Churches should have never partnered with the government. Not a good marriage.
Thank you!!
Now we got to pay taxes anyway , if we have cash app, vemo etc, it starts 2022
Is this official and does it it start in 2022 going forward or does it go back to 2021
@@Godfather44055 2021
@@LillyMaeLive don't you think they will use these new 1099K filers to audit past years when it was not mandatory?
Extremely one dimensional business perspective. Example: $99 price tag for psychology of marketing; already losing the dollar to push the sale. 3% extra to the price ruins that. Also, 3% is highway robbery. That’s $30,000 from a million in sales. No accountant is worth that annually for one client of books plus you still have to pay the actual accountant. That logic is a joke. I rather have to deliver checks and write the numbers myself. $30,000 is almost an average salary in the U.S. now consider PayPal doing this in the billions in transactions fees for software already done. It’s an incredible business model for paypal, But sucks for the user.
Also that example for photographer $5000 to $5150. Dumb. People who take pictures are a dime a dozen. If not using friends, going with the best pricing based on their reputation and their past photo books. Raising price $150 they just lost business to a competitor.
There is no S at the end of anyway 🤦🏻♂️
😂😂😂
Hola necesito tu ayuda 🙏
Cash is king 👑
Credit is king cash is trash
Inconveniencing the customer is always best practice. ;p Sorry Jane. I no longer take your preferred form of payment.
That's your choice if you want to inconvenience your customer. You could do the right thing and get the business version and pay the fees and then you wouldn't have to inconvenience your customer if they are so hell-bent on that type of payment.
Total square
Lost me with the "no,no"
Cool. Thanks for letting me know. I’m a mom, what can I say lol. Hey, have a great day!
I paid so many in fees amh
👆👆👆The above name can help you
Sqre? BWare!
Research.
Why , are you a hater . Also cash app and Venmo is a lot better and safer than PayPal
bad info
There are interesting news articles on the web, "I know what you did on Venmo: Discovering privacy leaks in mobile social payments"
👆Big thanks to the name above 👆 for been a loyal vendor to me for weeks since I got my Fullz,dumps &PayPal balance successfully thanks for making everything perfect for me bruv☑️
Zelle works better for this :)
#1984rum
Thank you
👆Big thanks to the name above 👆 for been a loyal vendor to me for weeks since I got my Fullz,dumps &PayPal balance successfully thanks for making everything perfect for me bruv☑️