Venmo User Agreement

This agreement sets out the rules for using Venmo, including a requirement that disputes with PayPal be resolved through binding arbitration rather than in court—unless you opt out within 30 days of first signing up. Venmo can freeze your funds for up to 180 days if it determines there is a liability risk or if any Teen User linked to your account breaks the rules. You cannot use a personal Venmo account for business transactions, and if you receive $600 or more for goods and services in a year, that income is reported to the IRS.

The Venmo User Agreement establishes the terms under which users may access Venmo's payment services, including a binding arbitration clause with class-action and jury-trial waivers that channel all disputes with PayPal into arbitration or small claims court, with a 30-day postmark window for new users to opt out. Venmo reserves the right to hold account funds for up to 180 days where reasonably needed to protect against liability risk or where the account owner or an associated Teen User has violated the Acceptable Use Policy. Personal and Teen Accounts are prohibited from conducting business, commercial, or merchant transactions, and the account owner bears full legal responsibility for all Teen User activity. PayPal's liability is capped at direct damages only, with explicit exclusion of lost profits and consequential damages, and users must indemnify PayPal against third-party claims arising from their breach of the agreement. Adverse changes to user rights or responsibilities require at least 21 days' advance notice, and payments for goods and services meeting or exceeding $600 in a calendar year are subject to IRS reporting by PayPal.

As a Venmo user, your most consequential exposure is to the binding arbitration requirement, which eliminates your ability to sue in standard court or join a class action—if you are a new user who wants to preserve those options, you must mail an opt-out notice postmarked within 30 days of first accepting the agreement. Your account funds can be held for up to 180 days if Venmo determines a hold is reasonably needed to protect against liability or if you or a Teen User linked to your account violates the Acceptable Use Policy—and you bear full responsibility for all Teen User activity regardless of whether you personally took that action. PayPal's liability to you is limited to your direct damages in any circumstance, and you are required to indemnify PayPal for reasonable legal fees arising from your breach of the agreement.