Venmo Chargebacks

While it’s the world’s most popular peer-to-peer digital payment platform, Venmo has made its way into the merchant space as so many customers are requesting to use it for payment. It is now vital that merchants offer Venmo to customers and it’s only growing in popularity. With this comes chargebacks. At CB-Alert, we help merchants drastically reduce their chargebacks and set up preventative measures to stop that from occurring in the first place. With over 85.1 million active users in 2023, Venmo is set only to continue to grow.

Let’s take a look at everything you need to know about Venmo chargebacks in 2024, as customers are now purchasing items from merchants online and in-store via QR codes.

Key Takeaways

  • Venmo chargebacks can occur when a customer challenges a credit card transaction but are impossible for bank account-funded transactions.
  • Merchants can file a dispute within ten days of receiving a chargeback notice with the required information, including communication with the customer, proof of refund, tracking information, and supporting evidence.
  • Venmo does not offer buyer protection, but may assist customers if their account is compromised, and may offer chargeback adjustments if approved by the issuing bank.

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What Are Venmo Chargebacks?

A “Venmo chargeback” typically refers to a dispute initiated by a cardholder regarding a Venmo transaction with their issuer. This differs from an internal “Venmo dispute,” which is resolved directly by the payment platform without the involvement of the card issuer.

When a Venmo customer disputes a charge and receives a refund, it is now a Venmo chargeback. It’s important to understand that Venmo chargebacks only apply to transactions funded via credit cards, not those funded directly from a bank account. While Venmo assists in the internal dispute resolution process, Venmo does not make the final decision regarding chargebacks.

Chargebacks aren’t possible for bank account-funded transactions. Venmo assists in the internal dispute process, but the card issuer makes the final decision regarding chargebacks.

Merchants have 10 days to file a dispute upon receiving a chargeback notice. During the dispute process, it is essential to provide necessary information, such as communication records with the customer, proof of refund, tracking information, and supporting evidence.

The Dispute Process

If you’re disputing a Venmo chargeback, the following information may be requested:

  • Merchant-customer communication: Maintaining clear and documented exchanges regarding transaction details, terms, and any disputes or agreements.
  • Refund verification: Providing evidence of refunds, specifying whether they were processed within Venmo or through alternative methods.
  • Validated tracking details: Confirmation of shipping or service delivery, ensuring accurate and verified tracking information.
  • Supplementary evidence: Including additional supporting documentation, such as correspondence records, agreements, or any pertinent evidence reinforcing the merchant’s stance.

Chargebacks Vs. Disputes For Venmo

Disputes occur when a cardholder decides to challenge a transaction. A chargeback is the result of a dispute. Simply put, a dispute is the initial step in a chargeback process in which a cardholder contests their charge with the bank.

Venmo Dispute

A Venmo dispute begins when a user contacts Venmo’s support team directly to report an unauthorized transaction or other discrepancies. Venmo then conducts an investigation, which may include reviewing transaction details and any evidence provided by both parties. The goal is to determine whether the transaction was unauthorized or an error occurred.

If Venmo confirms the validity of the dispute, they will reverse the transaction and refund the funds to the user’s account. 

It’s important to note that items are not elgible for refund if:

  • The item arrived as described but didn’t meet the buyer’s expectations.
  • The buyer is requesting a refund due to a personal issue with the seller.
  • Any defects were correctly described in the listing.
  • The item was listed as ‘used’ and featured minor scratches or bruises.
  • The customer no longer likes/wants the item.

Venmo Chargeback

The process of a Venmo chargeback mirrors traditional chargeback procedures but includes distinctive elements.

It begins when a cardholder initiates a dispute regarding a Venmo transaction with their credit card issuer. The issuer commences an investigation, prompting Venmo to provide relevant documentation, such as transaction records and any communication between the parties involved.

If the card issuer rules in favor of the cardholder, Venmo is instructed to retrieve the funds from the merchant and return them to the cardholder.

Overall, this process typically takes longer than traditional chargebacks.

Overall Venmo Chargeback Process & Flow

  • Scammer acquires stolen payment card or banking information.
  • The scammer uses stolen information to fund a Venmo account.
  • Using the Venmo app, they transfer funds to their own account.
  • The cardholder discovers the scam and files a chargeback.
  • The bank takes money from the merchant to cover the chargeback.

Can Merchants Use Venmo?

Merchants can utilize Venmo by creating a business account to accept payments.

  • Venmo business accounts incur a 1.9% + $0.10 fee for all transactions.
  • Only Venmo payments are accepted through business accounts; peer-to-peer payments aren’t permitted.
  • Transactions made through Venmo can’t be canceled or reversed, as funds are immediately accessible once withdrawn.
  • Merchants should be aware that Venmo doesn’t provide buyer protection but may assist if an account is suspected to be compromised.

Preventing Venmo Chargebacks

To prevent Venmo chargebacks, ensure you verify transactions promptly and address customer concerns proactively. Here are some strategies to help you minimize the occurrence of chargebacks:

  • Maintain a clear and easily recognizable billing descriptor.
  • Use delivery confirmation for all transactions.
  • Keep thorough records of every transaction.
  • Foster regular communication with customers to address concerns promptly.
  • Process refunds and cancellations promptly upon request.
  • Remain vigilant for any signs of suspicious activity.

Can You Reverse Venmo Payments?

Unfortunately, Venmo payments cannot be canceled or reversed. Once a payment is initiated, it is immediately reflected in the recipient’s account and cannot be undone. Therefore, it’s crucial to double-check all transaction details before completing a payment to ensure accuracy.

Can Sellers Refund On Venmo?

Absolutely, sellers can issue refunds on Venmo. To process a refund, sellers must manually send a payment back to the buyer since Venmo does not offer an automated refund process.


Are you a merchant currently using Venmo services and struggling with chargebacks as a whole? Look no further than CB-Alert.

Venmo chargebacks pose a significant financial risk to companies. At CB-ALERT, we are dedicated to easing this burden and giving you back valuable time.

With over twenty years of expertise, we are a crucial partner in your business’s growth. Here’s what CB-ALERT offers:

  • Real-time alerts through Ethoca and Verifi
  • 24/7 customer service support
  • Transparent pricing models
  • RDR (Representment, Dispute, and Resolution)
  • Compatibility with various gateways and CRMs
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