PayPal’s Venmo service (“Venmo”) enables Merchant to accept Venmo as a payment method at checkout. Venmo shall be deemed part of (and included in the definition of) the Braintree Payment Services pursuant to the Payment Services Agreement (“Agreement”), and Merchant’s use of Venmo is subject to all applicable terms and conditions of the Agreement.
2. Venmo Transactions
- a. In addition to any other restrictions and conditions set forth in the Agreement, Merchant may not use Venmo: (i) to accept international payment transactions; (ii) to sell goods or services in person or through the Venmo website or mobile application; (iii) to accept peer-to-peer transactions from Venmo users; (iv) to facilitate transactions that are prohibited by, or require express prior approval under, the Acceptable Use Policy; and/or (v) through any entity not formed, registered, incorporated or otherwise organized in the United States.
- b. Merchant shall not use Venmo to accept payments from Venmo users automatically on a recurring basis (“Automatic Payments”) unless the following requirements are met:
- i. Express Prior Written Approval by PayPal. Merchant must receive PayPal’s express prior written approval to use Venmo for facilitating Automatic Payments.
- ii. Authorization. Merchant’s Customer must provide Venmo with a one-time authorization at checkout allowing Merchant to accept payment from the Customer’s Venmo account.
- iii. Customer Consent. Merchant must obtain Customer’s prior consent to the amount, frequency, and duration of the Automatic Payment.
- iv. Notice Requirements. If the amount of the Automatic Payment may vary, Merchant must fulfill one of the following three (3) requirements:
1. Merchant must allow the Customer to set both a minimum and maximum amount that Merchant may charge for each Automatic Payment, and Merchant must only accept payments within that range;
2. Merchant must inform the Customer of their right to receive notice of the amount and date of each Automatic Payment. If the Customer elects to receive such notice, Merchant must provide such notice at least ten (10) calendar days prior to the date of the Automatic Payment; or
3. Merchant must provide the Customer with the ability to receive notice regarding any of the following: (x) each Automatic Payment; (y) any Automatic Payment amount is outside the minimum and maximum amount set by the customer; and (z) if t the Automatic Payment amount is more than the prior Automatic Payment amount as agreed to by the Customer. If Merchant’s Customer elects to receive such notice, Merchant must provide such notice at least ten (10) calendar days prior to the date of the Automatic Payment.
- v. Required Cancellation Procedures. Merchant must allow Customers to cancel any Automatic Payment within three (3) business days of the scheduled date of such Automatic Payment. Additionally, if the Customer signs up for the Automatic Payment online or within the mobile application, Merchant must provide a simple and easily accessible online or in-app cancellation procedure. If the Customer cancels the Automatic Payment, Merchant may not accept payment from the Customer’s Venmo account for the Automatic Payment.
- vi. Compliance. Merchant agrees to comply with Regulation E (12 CFR 1005.10)). Merchant shall provide PayPal with evidence of such compliance upon request.
- c. PayPal reserves the right to suspend or terminate Merchant’s use of Venmo if: (i) PayPal detects levels of fraud or other activity that it believes are unreasonable or could expose PayPal to financial loss or legal liability or (ii) in accordance with Section 5.02 (“Actions by Braintree”) or 8.01 (“Term and Termination”) of the Agreement.
- d. Merchant acknowledges that Venmo users may delete connections to Merchant from within Venmo at any time. Once that connection is deleted, Merchant will no longer be able to accept payments from that Venmo user. Merchant agrees PayPal is not liable for such failed transactions. If a Venmo user disputes a Venmo payment, that Venmo user may be first directed to Merchant to resolve the dispute. If the dispute is not resolved, PayPal may reverse and deduct such amount from Merchant’s Payouts. Venmo transactions are subject to the purchase protection provisions of the Venmo User Agreement (located as of the Addendum Effective Date at https://venmo.com/legal/us-user-agreement/, and as subsequently relocated and/or amended) (the “Venmo UA”). If a Venmo user successfully asserts a purchase protection claim, Merchant is responsible for the amount of the claim, which PayPal will deduct from Merchant’s Payouts.
- e. Merchant shall not authorize any Venmo payment more than three (3) business days prior to accepting payment.
- f. Merchant acknowledges and agrees that when a Customer pays using Venmo, the Customer maintains all of their rights under applicable laws and card network rules with respect to Chargebacks and other disputes that may arise with respect to that transaction. To the extent permitted by applicable laws and card network rules, Merchant has the same rights and obligations with respect to a Chargeback or dispute filed on a transaction as it would have with respect to any other Chargeback or dispute.
In addition to any other amounts Merchant is responsible for pursuant to the Agreement, Merchant will also pay PayPal the fees and charges as agreed in writing. Fees charged pursuant to these terms will be subject to Section 2 of the (“Fees and Taxes”) of the Agreement.
4. Marks and Usage
Merchant shall provide equal treatment to Venmo and Venmo’s Marks with respect to any other payment method(s) or mark(s) Merchant offers on any website or mobile application (“Point(s) of Sale”). As compared to any other mark(s) or payment method(s) at any Point(s) of Sale, this includes at least equal or substantially similar: (i) logo placement, (ii) position at all Point(s) of Sale, and (iii) treatment in terms of payment flow, terms, conditions, restrictions, or fees. When a Customer selects Venmo as its payment method, Merchant shall not inhibit the Customer’s decision to use any Venmo, dissuade the Customer from using Venmo, or encourage the Customer to use any alternate payment method(s). Merchant shall not mischaracterize, misrepresent or disparage Venmo or exhibit a preference for any other payment method over any Venmo. Notwithstanding the foregoing, if Merchant has its own co-branded card, Merchant may show preference for that card over Venmo. Whenever Merchant displays or exhibits any other payment method(s) that Merchant accepts (either on any Point(s) of Sale or in its marketing materials, advertising or other customer communications or interfaces), Merchant agrees to display Venmo’s acceptance Marks for Venmo used by Merchant as prominently, and in at least as positive a manner, as Merchant does for the other payment method(s).Merchant shall not charge Customers any surcharge or additional fee for completing transactions using Venmo.
Merchant agrees to cooperate with PayPal and to promptly provide requested information, or take reasonably requested actions, in connection with any investigation into fraud or other illegal or suspicious activity PayPal may detect in connection with any Venmo transaction.
6. Relationship to the Agreement
These terms are hereby incorporated into and made a part of the Agreement. To the extent that these terms conflict with the terms of the Agreement, these terms shall control with respect to matters concerning Venmo. Except as amended by these terms, all terms and provisions of the Agreement shall continue and remain in full force and effect and binding upon the parties. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to them in the Agreement.