The agreement prohibits using personal accounts or Teen Accounts to conduct commercial transactions with other personal or Teen Account holders, except through expressly authorized channels such as business profiles, authorized merchants, or payments specifically identified as for goods and services.
This analysis describes what Venmo's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision establishes the scope of permitted transaction types on personal accounts and Teen Accounts, and the agreement states that violations may result in payment reversals in which users could lose both the goods or services and the associated funds. Enforcement is triggered by internal review processes.
The updated terms expand the arbitration clause to explicitly state that users agree to resolve 'most disputes by arbitration on an individual basis, a class action waiver, and a jury trial waiver.' The terms note that arbitration involves 'less discovery and appellate review than in court.' Additionally, Venmo's cash back rewards program has been restructured with specific tiered thresholds: users earn 1% baseline cash back, 2% if they spend at least $250 in a month, and 5% if they spend at least $1,500 in a month. Rewards are only applied to qualifying transactions with 'Bundle merchants' and exclude cash advances, gambling, wire transfers, cryptocurrency purchases, and certain financial institution transactions. If you return a purchase or receive a refund after earning cash back, Venmo states it may debit or withhold rewards to offset the amount. You must close your account before any changes become effective if you do not wish to be bound by them.
View change record →Under these terms, using a personal or Teen Account to pay for or receive payment for goods and services from another personal or Teen Account user outside the designated channels is prohibited. The agreement states that violating this restriction may result in transaction reversal and loss of both funds and goods.
Cross-platform context
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Compare across platforms →"Except for commercial transactions expressly authorized by Venmo, for example, transactions with authorized merchants or business profiles, purchases made using your Venmo Mastercard®, or transactions that are identified as payments for goods and services, personal accounts and Teen Accounts may not be used to conduct business, commercial or merchant transactions with other personal accounts or Teen Accounts, which includes paying or accepting payment from other personal accounts or Teen Accounts held by users you do not personally know for goods or services (for example, concert tickets, electronic equipment, sneakers, a watch, or other merchandise, deposits for apartments, or dog walking).Excerpt from Venmo's User Agreement
(1) REGULATORY LANDSCAPE: The prohibition on commercial transactions through personal accounts is an acceptable use restriction that interacts with Bank Secrecy Act and FinCEN requirements governing transaction monitoring for commercial activity on personal payment accounts.
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This provision establishes the scope of permitted transaction types on personal accounts and Teen Accounts, and the agreement states that violations may result in payment reversals in which users could lose both the goods or services and the associated funds. Enforcement is triggered by internal review processes.
Under these terms, using a personal or Teen Account to pay for or receive payment for goods and services from another personal or Teen Account user outside the designated channels is prohibited. The agreement states that violating this restriction may result in transaction reversal and loss of both funds and goods.
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