Payment suspension is a standard industry practice that Venmo Money On Hold enforces to provide a safer environment for both buyers and sellers on our platform.
Because selling products and services online involves some financial risk, these suspensions provide an easy way to resolve payment-related disputes. This practice also makes chargebacks easier for business owners and merchants when a customer needs a refund. When a payment is suspended, businesses and merchants can expect funds to be available in their Venmo account (less trade transaction fees or merchant transaction fees) in 21 days or less.
What causes a payment to be suspended?
There are several reasons why your fee may be delayed. If you receive a payment that has been suspended, you will receive a payment confirmation email notification. Pending charges also show up with a small Pending icon in the Transactions tab of the Venmo app, and you’ll see the amount held at the top of this page. My payment is pending. The money is still yours when your payment is suspended, only temporarily suspended.
Suspended payments are automatically unblocked within 21 days, which means you will have access to the funds of any delayed payments after the suspension period has elapsed. When this happens, you will receive a notification in the Venmo app and an email explaining that your funds are available. You can select any payment from the Transactions tab in the Venmo app to see if it’s pending and see more details about the price. This information is also available when viewing an extract from the Internet.
How to avoid suspension of payments?
Selling goods and services over the Internet comes with some inherent financial risks.
With this in mind and to create a safer environment for buyers and sellers on Venmo, payment suspensions will be automatically applied to eligible payments. Since these blockages happen automatically, there is no way to prevent them from happening.
Due to lower federal IRS reporting thresholds for 2022, you may be required to provide Venmo with tax information if you receive payments for the sale of goods and services. To comply with new federal regulations, payments received for the sale of goods and services that exceed federal or state reporting thresholds will be withheld until tax information is verified. If you have not received any payment for the sale of goods and services, this will not affect you. We will let you know when you are close to the threshold and if any of your costs are pending if you accept these payments. Find out more about what’s new on your 2022 tax return here.
I got a notification asking me to verify my tax information. If you receive this notice, the total payment you received for selling goods and services on Venmo met or exceeded the federal or state IRS reporting threshold for that type of income.
You can authenticate affected profiles in the Venmo app – follow the instructions on the notification page or look for authentication in settings. Learn more about Venmo authentication. I have verified my taxpayer details.
Why is my payment on hold?
If you have already verified your tax information, you may still face payment suspension for several reasons. Learn more about payment suspensions and their causes.