Manage Payment Processors (Like PayPal & Venmo) in YNAB

How do you pay your friends back for the concert tickets they bought since you’ve got that money waiting in your fun category? You’re most likely going to use a payment processor app like PayPal or Venmo.

These apps allow you to move money from your bank account to Venmo, to send to your friend, seamlessly. But how do you reflect that in your budget?

We have two options, depending on how you use PayPal, Venmo or other payment processing apps:

Option One: Keeping It Off-Budget (Recommended)

Do you keep a balance in your PayPal or Venmo account? If not, we recommend keeping that account out of your budget altogether.

In most cases, PayPal and Venmo are acting as a payment processor, and the money is flowing from your bank account to the vendor you're paying, with this account being essentially a passthrough between them. Therefore, the simplest way is to record purchases that you make via PayPal or Venmo as outflow transactions from your checking account.

Option Two: Setting It Up As An Account

If you use this account like a checking account and keep a balance in PayPal or Venmo, you can set this up using the checking account type in YNAB and enter only the transactions that affect the balance—inflows and spending from the actual balance. You'd continue to enter any transactions that affected only another account, like a checking account at a bank, into that account and not the PayPal or Venmo account.

We don’t currently support Direct Import for PayPal or Venmo. We encourage you to enter those transactions with our other transaction entry methods.

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