This clause requires you and Venmo to resolve disputes through individual arbitration rather than going to court, and waives your right to join a class action lawsuit against Venmo.
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
The agreement states that virtually all disputes between users and Venmo must go through individual arbitration, which eliminates the option to sue in court or participate in a group lawsuit, and waives the right to a jury trial.
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 this provision, users who experience issues such as unauthorized transactions, wrongful account suspensions, or fee disputes cannot pursue claims in court as part of a group; the agreement requires each dispute to be resolved individually through arbitration, which may be procedurally and financially impractical for small-value claims.
How other platforms handle this
If, however, this Class Action Waiver is deemed invalid or unenforceable with respect to a particular Dispute...neither you nor Chegg will be entitled to arbitration of such Dispute.
the arbitration provider, National Arbitration and Mediation ("NAM"), shall not accept or administer any demand for arbitration and shall administratively close any arbitration unless the Party bringing such demand for arbitration can certify in writing that the terms...were fully satisfied.
Neither you nor we may elect arbitration of any claims seeking only individualized relief asserted by you or us in small claims court, so long as the action remains in that court and is not removed or appealed de novo...
"You and Venmo agree that any claim or dispute at law or equity that has arisen or may arise between us will be resolved in accordance with the Agreement to Arbitrate provisions set forth below. Please read this information carefully. Among other things it: Affects your rights and will impact how claims you and we have against each other are resolved. Contains a Waiver of your right to a jury trial, and to have any dispute resolved in court. Contains an agreement not to bring or participate in class actions against Venmo.Excerpt from Venmo's User Agreement
1) REGULATORY LANDSCAPE: Mandatory arbitration clauses in consumer financial services contracts interact with the Consumer Financial Protection Act and prior CFPB rulemaking; the CFPB issued a rule in 2017 that would have restricted class action …
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The agreement states that virtually all disputes between users and Venmo must go through individual arbitration, which eliminates the option to sue in court or participate in a group lawsuit, and waives the right to a jury trial.
Under this provision, users who experience issues such as unauthorized transactions, wrongful account suspensions, or fee disputes cannot pursue claims in court as part of a group; the agreement requires each dispute to be resolved individually through arbitration, which may be procedurally and financially impractical for small-value claims.
ConductAtlas has identified this type of provision across 205 platforms. See the full comparison.
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