PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Would You Pay 3% for Purchase Protection?

By Sarah Grotta
May 4, 2020
in Analysts Coverage, Chargebacks, Credit, Debit, Merchant, P2P
0
2
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Adzooma and Revolut Business Launch Industry First Marketing Cashback Incentive

P2P apps remind users that they should only transact with people they know, but of course users will transact with strangers and sometimes get ripped off.  As highlighted on Bobsulivan.net, Venmo has quietly rolled out a program where for a fee of 3% of the purchase amount, Venmo will step in and help to negotiate situations where purchases made over its network that go sour, like non receipt of goods, damaged goods, or goods that are materially different from what the purchaser ordered.  

All the gory details can be found on the Venmo site here.

Here’s the quick overview:

Sometimes purchases don’t go as expected. When you opt in to Refund Support for eligible purchases, we can help. Let us know within 30 days after your payment and we’ll work directly with the seller to get your money back for eligible items. 

Examples of items that may be covered: You bought dress shoes, but ended up getting sneakers; you bought an authentic handbag, but got a knock-off; you paid for a massage, but the masseuse didn’t show up.

You’re covered if:

Your order was a lot different than it was described

You never received the item or service

You received the wrong item

The item got banged up during shipping

The item was missing parts and won’t work

The service wasn’t as described

This doesn’t cover unauthorized transactions, which are already covered by Reg E.  This service appears to emulate the card networks’ chargeback process.  I think it’s interesting that in this model, it’s the seller who is in the wrong, yet it’s the buyer who ends up paying.  That 3% is kept by Venmo, regardless of the outcome of a transaction covered by the program.

Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group

2
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: CashbackChargebacksP2PPurchase ProtectionRefundsVenmo

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    visa mastercard settlement

    Why Walmart Is Taking the Lead Against the Visa and Mastercard Settlement

    December 18, 2025
    commercial banking onboarding

    The Biggest Bottleneck in Commercial Banking? Onboarding

    December 17, 2025
    Amazon, Visa, and the UK: Credit Card Retail Wars and My Rewards, Amazon Pay cash load

    Trouble at Home: A Second Flop in Credit Card Rewards

    December 16, 2025
    mastercard merchant

    Payments Simplicity Is Still Key for Most Shoppers

    December 15, 2025
    cross-border tokenized deposits

    Ant International and HSBC Pilot Cross-Border Tokenized Deposit Transfers on Swift

    December 12, 2025
    Fiserv stablecoin

    Three Small Business Trends That Banks Can Hop On in 2026

    December 11, 2025
    echeck

    Beyond Paper: Why More Businesses Are Turning to eChecks

    December 10, 2025
    metal cards

    Leveraging Metal Cards to Attract High-Value Customers

    December 9, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result