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Having your Venmo account frozen can be incredibly frustrating, especially as a business owner. The inability to send or receive money can have a significant impact on income and operations— and clients unable to make payments may go elsewhere. Furthermore, there might be challenges in acquiring inventory, potentially impacting your cash flow.
With over two million merchants in the US accepting Venmo payments, the platform has become key to consumer convenience. Originally strictly a P2P platform, Venmo began offering business accounts in 2020 to expand services for merchants.
Venmo is able to freeze accounts due to safety concerns or unmet requirements. In this guide, we’ll unpack these reasons—and detail what steps to take to regain access to your funds.
Why Is My Venmo Account Frozen?
Venmo freezes accounts mainly for security purposes—either to protect you or to protect others. If Venmo suspects suspicious activity or finds that you do not adhere to its user policy, you’ll be at risk of having your account frozen, leaving you unable to accept payments.
Consider the following scenarios to determine why your account may be temporarily suspended:
Venmo prioritizes fraud protection for its customers—not only to protect users but also to protect its reputation as a payment platform. If Venmo detects activities that could indicate unauthorized access or hacking, it may freeze your account to protect your funds.
Violations of terms of service
Venmo does not allow certain high-risk businesses to use the platform to receive payments. For instance, when it comes to selling firearms, your customers will need to pay via a different avenue. If you violate the terms of service—say, by engaging in prohibited transactions or using the platform for illegal activities—Venmo will suspend your account.
If Venmo requires additional verification or documentation to confirm your identity or address, you may find your account suspended until you provide the necessary information.
While not having money in your Venmo wallet is not a reason for suspension, trying to make payments when you don’t have sufficient funds in your linked bank account can be a trigger.
Unusual activities like sending large payments to unfamiliar people or regularly altering your account details may prompt Venmo’s security systems and result in an account suspension.
The platform may also freeze your account if you are involved in multiple disputed transactions or experience a high volume of Venmo chargebacks.
How to Get Money Out of a Frozen Venmo Account
When Venmo freezes your account, you cannot access funds—it’s a full stop. You won’t be able to make transfers or purchases within your Venmo account, and payments will be declined.
Keep in mind that one of the reasons Venmo may freeze your account is to protect your funds and your identity from hackers. So, allowing access to funds if they suspect something suspicious will defeat this goal. The only way to regain access to your account is to reinstate accessibility by unfreezing it.
How to Unfreeze a Suspended Venmo Account
Having your Venmo account frozen does not mean you can never use the service again. However, you will need to take specific steps to regain account functionality. Here’s what to do:
1. Contact Venmo Support
Venmo may send you a notification regarding the reason for your account suspension. The email will provide prompts for resolving the issue. However, many Venmo scammers also use this tactic. They’ll send a fake email asking users to pay money before reinstating their account. Therefore, contacting Venmo’s customer support directly or contacting them through the Venmo app may be the safest solution. You can also submit a support ticket via the website support center.
2. Provide Required Information
Venmo will ask you to verify your identity to ensure you are the rightful account owner. They may require information such as identity documentation, proof of address, or business documents. Providing what they need as soon as possible will help expedite the process.
3. Cooperate With Venmo
Again, it’s important to remember that Venmo freezes accounts due to safety concerns. That means they are likely investigating the account’s recent activity. It’s key to cooperate with Venmo, providing the information they need to make the process as easy as possible for both sides.
4. Follow Up and Communicate
Your account is likely one of multiple cases being processed. This means that, depending on the reason for suspension, you may not resolve it immediately. Continue to follow up with Venmo and communicate with them until the problem is resolved.
5. Prevent Future Issues
Once you’ve regained access to your account, it’s worth taking precautions to ensure it doesn’t happen again. You can do this by:
- Understanding and following Venmo’s terms of service
- Securing your account with two-factor authentication and strong passwords
- Regularly monitoring account activity and reporting concerns immediately
- Maintaining sufficient funds in your linked accounts to cover transactions
- Resolving any transaction disputes amicably to prevent escalation
Should You Delete Your Frozen Venmo Account?
If you’re hoping to resolve your frozen account by simply deleting it and opening a new one, you won’t get very far. To delete your Venmo account, you’ll need to access it—and that means getting it reinstated.
Although Venmo makes customer payments convenient, there are several drawbacks to using Venmo for business, especially as your operation grows. If you’ve had your account frozen, you’ll know just how severely this can impact your business and cash flow.
In addition, since Venmo was originally designed for personal payments, it lacks key features of traditional merchant accounts, such as accounting integration, inventory management, and refunds, among others. Its high fees can also drain profits as business transactions increase.
Closing your Venmo business account and switching providers can avoid these pain points and streamline business transactions and operations.
Once you close your account, you will not be able to access it again or retrieve any information, funds, or transaction history. The good news is that if you would still like to use Venmo for P2P payments, you can keep your personal account while closing your business account.
Take these actions to avoid complications before closing your Venmo account
- Transfer all funds in your accounts into your linked bank account. Venmo does not automatically transfer any remaining funds; you will need to contact them directly to try and get that money back.
- Ensure that you do not have any outstanding transactions pending. Venmo will not allow you to close your account if there are pending issues or transactions.
- Save a copy of your transaction history outside of Venmo because it may be required for tax purposes.
- And remember, as previously stated, contact Venmo to keep your personal account. Closing your account with the following steps will result in the permanent closure of both business and personal accounts.
Steps to close your Venmo account
- Log in to your Venmo profile via the app
- Click on the “Me” tab (accessible by clicking on your account picture)
- Navigate to the “Settings” icon on the top right
- Select “Preferences” and then “Account” on the menu
- Here you will find an option to “Close Venmo account”—select it and follow the prompts
How to Maintain a Successful Business Account
Having a payment provider that offers the solutions your business needs is the key to success. If you’re in a high-risk industry and your provider shuts down every time they question a transaction or chargeback, they could potentially be doing your business more harm than good.
Using a payment solution specifically designed to meet your unique business needs can help you avoid these complications. PaymentCloud offers reliable services for merchants across various high and low-risk industries. Our dedicated account managers are committed to finding you the best online payment solution and pricing for your unique business needs, giving you peace of mind that your business can run smoothly.
Venmo Account Suspended FAQs
Can I still receive payments if Venmo freezes my account?
No, you won’t be able to receive or send money until Venmo reinstates your account.
How long will it take to reinstate my frozen Venmo account?
Reinstating your business account can take a few hours up to a few days. This could depend on the reason your Venmo account is frozen, the complexity of the issue, and the volume of support requests, among other factors.
Can I use my phone number to open more than one Venmo account?
No. Venmo requires a new phone number for every new account to verify identity and protect financial data. Even if you delete an old account, you will need a new number to register a new account.
Note that Venmo also does not allow you to have more than one personal and one business account.
Will deleting my account also delete transaction history?
No. Venmo keeps a record of all transactions, even if you delete your account. Although you cannot access your deleted account, transaction records will still exist in their database.
Why is Venmo declining payments even after unfreezing my account?
Reasons your payments may be declined include:
- Insufficient funds in your account
- Exceeding payment limits
- Outstanding verification documents
- Products or services that are considered high-risk