Troubleshooting Venmo Payment Declines and Issues
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Venmo, the hugely popular payment app used by millions of people around the world, has earned a reputation for convenience, ease of use, and speed, in the competitive space of digital payments. For the most part, Venmo is well regarded by consumers and merchants alike, earning a reputation as one of the leading mobile payment services around.
More recently, however, there has been a rise in reports from a small percentage of users suffering from the headache-inducing issue of declined transactions. This can be a stressful and sometimes quite angering experience, leaving users in a state of confusion and, if it happens too frequently, a feeling of mistrust towards this well-established payment provider.
If you find yourself facing the all too frequent Venmo “there was an issue with your payment” predicament, we hope to alleviate some of the anxiety through this blog post today. There are several reasons why a ‘Venmo payment declined’ issue might exist. Fortunately, there are solutions to address these issues – solutions that many people are unaware of.
In this article, we will take a look at the various causes of transaction failures and provide you with the best possible solutions to get your Venmo payments ticking over again, hopefully, free of common problems. Let’s get to it, addressing the common question, “Why is my Venmo not working” with answers, solutions, and tips to help you troubleshoot and resolve any issues you may be facing.
Why Is Your Venmo Transaction Being Declined?
A Venmo issue with payment can be incredibly frustrating and even a little embarrassing, depending on the situation. Whether you’re a business trying to collect customer payments or a consumer attempting to stock up on weekly groceries, a declined Venmo payment might have legitimately negative consequences for you or your customer.
While the specific reasons for a decline can vary, there are several common issues that often lie at the root of the problem. Some of these reasons are glaringly obvious, but you might be surprised at how frequently they cause bewilderment.
If you ever find yourself questioning why is my Venmo not working, you should find this post quite useful. Let’s shed some light on the potential reasons behind a Venmo transaction decline, beginning with the most common (and probably most obvious) reason of all – a lack of funds in the account.
Lack of Funding
The most frequent cause of a declined Venmo payment is insufficient funds in the account. Again, this might seem like an obvious reason that would not require explanation – having said that, the issue often happens when users have multiple linked bank accounts, and confusion arises as to which account has funds and which does not.
Essentially, before processing the payment, Venmo verifies that the account holder’s balance or linked bank account has enough funds to cover the transaction. If there isn’t enough money available in the account, the payment will, of course, result in being declined.
To resolve this issue, the account holder simply needs to ensure that there are sufficient funds in the Venmo balance (or linked bank account) before attempting the transaction again. Nine times out of ten, the payment will go through once the payer has checked account funds – and checked the correct account is linked – before trying again.
Weak or unstable internet connectivity can frequently result in a declined Venmo transaction. As transactions are carried out through a secure network, the slightest lag, buffering, or downtime (even for a millisecond) will result in terminal failure.
Again, the solution here is quite obvious but needs repeating; just try connecting to a different network or rebooting the router and starting again. Additionally, restarting the Venmo app or merchant device may help. If the problem persists despite a stable internet connection, it’s recommended to contact Venmo customer support for assistance.
Declined by Bank (or Card Issuer)
Quite often, the connected bank or card issuer will block a transaction from processing for various reasons, the most common of which are a card/account freeze or suspicion of fraudulent activity on the account.
In such cases, the only option here is to contact the bank (or card issuer) to appeal as (ultimately) they have the final say on whether the transaction goes through or not. To resolve this issue, the payer should reach out to their bank’s customer service and address the matter directly with them.
Reached Payment Limits on Account
Venmo imposes set limits on the amount of money you can send during a single transaction – all banks and payment providers do the same (excluding the ‘ultra-elite’ high-level cards and accounts, which are rare).
For Venmo P2P payments, there is a maximum weekly limit of $299.99 USD for unverified users. However, after completing identity verification, users are eligible to send up to $60,000 USD per week. If you or your customer exceed these limits, Venmo will simply decline the transactions.
There is no solution here other than exploring alternative payment methods while the payer goes through the process of verification (which obviously isn’t going to happen during the point of transaction).
Unverified Account Info (or Outdated & Incomplete)
Another common cause of a Venmo issue with payment lies in the failure to fully complete the setup of the Venmo account or having outdated or unverified account information (such as contact details and address). This can lead to swift payment declines. It is important to follow the necessary steps when creating the account, including linking a valid bank account and verifying the account information. Also, make sure the account number is entered correctly and update any expired debit or credit cards that may exist.
For any issues with account verification or linking accounts, contact the bank’s technical assistance, or Venmo customer support should be able to offer assistance.
Locked or Frozen Accounts
Like any secure network, Venmo may temporarily freeze your account if there are login failures or issues with the two-factor authentication process. In such cases, wait for a few minutes or hours before attempting to access your account again. If immediate access is required, contact Venmo customer service for further assistance.
High-Volume Transactions & Suspicious Account Activity
A Venmo transaction may be declined if the payer makes high-volume transactions quickly or displays what the merchant or Venmo would view as questionable payment behavior.
This is something of a gray area, but it usually includes a sudden rise in payments from foreign countries, transactions linked to high-risk accounts, payments made with a brand-new device, and transactions with unusually high rates of chargebacks.
Also, if the account has been dormant for a long period and then suddenly starts receiving several payments over a short time period – or if the account activity significantly increases – Venmo may also reject transactions and quite frequently do so in those circumstances. Again, there isn’t much we can offer here in the way of solutions aside from paying attention to these things and utilizing Venmo sensibly.
Traditionally High-Risk Products & Services
Venmo may decline payments if the merchant is involved in what they might classify as a high-risk business. This is another slightly gray area, although the reasons usually stem from high chargeback ratios, high transaction volumes, and a significant number of card-not-present transactions. These are the main factors that contribute to a business being labeled as high-risk.
Certain industries, in particular, are traditionally classed as high risk not just by Venmo but by most banks and payment providers. These include:
- Adult products or services
- Alcohol sales
- Auto sales
- Background checks
- Affiliate marketing
- Advertising services
- CBD products
- Firearms and accessories
- Gambling and casinos
- Auto warranties
- Online dating services
- Health supplements (especially over the last few years)
- Tobacco and tobacco-based accessories
- Certain travel industries
Businesses in these categories are commonly considered high-risk by Venmo due to their susceptibility to a high level of fraud and chargebacks. As a merchant, you might not be directly involved in any of these niches but could possibly be in proximity to it. In these cases, it is worth reaching out to your bank and checking how your business is categorized.
What to Do if a Venmo Transaction Is Declined
Quite often, merchants (or consumers) might be uncertain about the cause of the declined Venmo transaction without any obvious reasoning behind it. Here are some troubleshooting options to consider:
Use a Different Payment Method
We were hesitant to include this suggestion owing to the fact it should be quite obvious and therefore goes without saying. That being said, if a Venmo payment is declined with frequency, it might be time to explore an alternative payment services provider.
Alternative options include Stripe, Square, or PayPal, to name a few examples. However, these providers may also have their own similar issues, leading to a circular problem. Acquiring a merchant account tailored to your business needs can offer a more reliable and customized payment processing experience.
Payment Savvy, for example, offers a highly reputable ALL-IN-DONE merchant account that allows industries and business categories of all sizes to be streamlined, efficient, and optimized. Our secure, state-of-the-art program allows credit cards, debit cards, and ACH payments to be processed in real-time through a custom combination of secure channels.
Errors With Venmo Account Details
With Venmo, ‘there was an issue with your payment’ is a common error that many merchants face, quite often owing to a minor error that results in a payment being rejected.
Make sure that all the information on the payer’s Venmo account – such as the card details and profile information – is correct and up to date. Make sure the card information is entered accurately and is not expired. A strong internet connection will certainly help the cause, together with profile information corresponding to the banking information.
If you have attempted troubleshooting, verified all information correctly, and ensured a stable internet connection, but transactions are still being declined frequently, it is advisable to contact Venmo customer service for further assistance.
If a Venmo payment is declining, there can be various reasons behind it, as mentioned above, although, to be truthful, the reasons are usually quite clear and obvious.
Verify Account Activity and Security Settings
It is important to regularly review Venmo account activity and security settings to ensure everything is up-to-date and, more importantly, appropriately secure. It helps to regularly check for any possible suspicious or unauthorized transactions that may, for example, indicate possible fraudulent activity.
If you notice any discrepancies or unauthorized access to the Venmo account, take swift, immediate action by contacting Venmo customer support and stating the issue. They should be able to assist with investigating and (hopefully) resolving any security concerns quickly.
In addition, you should review the account’s privacy and security settings. Enabling two-factor authentication for an added layer of security is always advisable, and consider setting up instant push notifications to receive alerts and prompts for any account activity or changes.
By staying vigilant and proactive about their account’s security, Venmo account holders can mitigate potential risks and protect their funds.
Venmo Payment Issues – Quick Fix
Venmo issue with payment problems mostly relate to network glitches, account blocks, incorrect bank account linking, insufficient funds in the account, and even suspicion of fraud (either correctly or incorrectly).
To address these issues, don’t hesitate to seek assistance from Venmo customer service, which should be committed to helping you resolve any problems you may encounter. This is usually the quickest form of rectifying the issue, although there are no guarantees a satisfactory outcome will be achieved.
Understanding the reasons behind Venmo transaction declines and knowing how to address them is the most important step for a seamless payment experience. By following the provided solutions and seeking assistance when needed, you can overcome these obstacles and continue enjoying the convenience of Venmo’s digital payment platform.
However, if you are a merchant experiencing frequent issues with your current provider, you should consider Payment Savvy as a modern and highly viable solution to your processing.
The bottom line is that we can help your business succeed by simplifying payment acceptance, reducing costs, and improving security. You can take a look at our range of services right here and reach out to our support team for any questions you might have by calling 866.303.2558. Alternatively, feel free to fill out our online form to see how we can help your business grow.