Risks of Using Venmo, PayPal & Other Cash Apps
For Small Business Payments 

1. Consumer payment apps aren’t fully secure for you or your customers.

   Venmo’s policies make it clear that transactions must be set to private, otherwise they might be available to anyone on the internet. Also, it's worth noting that you can search for other users and their purchase history on P2P cash apps.

2. Consumer payment apps are prone to fraud, scams, and human error.

   A LendingTree survey revealed that over 20% of respondents sent money to the wrong person through a cash app, and if they used the app multiple times a week, the percentage jumped to over 40%. And on most of these apps, there is no process for customers to get their money back.

3. Business transactions on P2P apps often undergo radical scrutiny that results in long holds on your funds.

   Both PayPal and Venmo can hold funds for up to 21 days, while Cash App will place holds on certain transactions for up to 10 days. PayPal may place a hold even longer depending on the situation.

4. Many consumer payment apps don’t even allow business transactions (or strongly discourage the practice).

   Venmo explicitly declares that you cannot use it for business transactions unless it is authorized by Venmo, and warns of the dangers of transactions in which two people who don’t know each other exchange money.

5. Balances in cash app holding accounts are not FDIC-insured.

   Financial institutions and banks are required by law to have deposit insurance (known as FDIC), which protects your money in case of an institutional failure. Peer-to-peer apps are not held to the same standard and rarely (if ever) offer this coverage.

Click here for more information about the dangers of using Venmo and other cash apps.

Frequently Asked Questions

Can my customers make recurring payments?
100%. GoSite partners with Stripe so that customers can make one-time or recurring payments through bank transfer. Having the flexibility to receive monthly recurring payments will open up new possibilities, making it easier to adapt the sales process to the needs of your buyers.

Can customers set up their own recurring payments?
The Gosite-Stripe partnership gives you the ability to set up recurring payments for customers who prefer to pay from their bank account on a regular basis. At this time, GoSite does not allow customers to set up their own recurring payments.

Can I take payments in person?
Absolutely. Gosite’s online payment services for small businesses allow you to take payment in person through the app or on the phone. All you'll need is the customer's credit card information. 

When do card processing fees take place?
When funds deposit into your account, they will be deposited with the fees already deducted from the total amount. You can set up credit card charges in your items list to charge this fee to clients using credit cards. This way, you can accept all of the most popular credit cards and avoid covering the cost of payment processing fees.

What happens in the event of a chargeback?
Chargebacks do happen from time to time. When this occurs, the dispute is between the customer’s bank (or credit card company) and the merchant processor. To reduce the risk of chargebacks, it’s critical that you maintain well-crafted invoices, communication records, and transaction records.

The GoSite payment app for small business integrates with Messages, Payments, Invoices, and your QuickBooks online account so that you can easily access these records in the event of a customer chargeback.

Have more questions?
Ready to see how GoSite can support your business needs?  Check out GoSite’s Knowledge Base for more information on how the Booking tool works.