What is Pay with Venmo Dispute Management?

Pay with Venmo is offering merchants more transparency, control, and management capabilities for buyer disputes. All merchants that accept Pay with Venmo will begin receiving disputes and assuming dispute liability.

Merchants that accept Pay with Venmo will be able to see and respond to Pay with Venmo Disputes within the PayPal Resolution Center. Getting access to this new set of dispute management capabilities will enable merchants to receive and review dispute reporting, respond to disputes, and identify and resolve issues.

What is Pay with Venmo (PwV) Dispute Management?

By adding Venmo as a payment button to an existing Checkout integration, merchants can allow payers to checkout with Venmo. Venmo customers can then report a dispute on these transactions either with Venmo or with their financial institution (card issuer or bank.)

What does the dispute process look like for Venmo transactions?

If a Venmo user disputes a charge:

• The merchant will be notified via email, webhooks, and daily dispute reports, with the ability to respond to the dispute and provide the necessary documentation.
• These disputes will be managed like PayPal transaction disputes.
• Merchants will be able to view & respond to these disputes via the Resolution Center.

How will the refund process work?

If a dispute outcome is found in favor of the buyer, Venmo will initiate a refund from the merchant to the buyer's Venmo account.

How will I be notified?

Merchants will be notified about these disputes via emails, webhooks, and daily Dispute Reports, and can respond to them using regular dispute management channels like Resolution Center and Dispute API.

What do I need to do?

Starting on November 7, 2024, we encourage merchants to respond to disputes received and address these disputes prior to the liability shift date starting Tuesday, January 21, 2025. Responding to disputes with valid evidence will help us understand merchants’ disputes better and maximize the overall chance of success.

When will the liability shift happen?

On Tuesday, January 21, 2025, a merchant that accepts Pay with Venmo will be responsible for any amounts owed in connection with disputes, reversals, or invalidated transactions, irrespective of the transaction date or the date the buyer files the case. This means that even if a dispute case is filed prior to January 21, 2025, merchants will be liable if the case is decided on January 21, 2025, or later.

 Where can I find additional information?

Pay with Venmo disputes will be a part of the existing PayPal disputes experience merchants may already be familiar with. To learn more about responding to PayPal disputes and merchant responsibilities, go here.