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Venmo is a fee app that makes sending and receiving cash straightforward. And with over 80 million customers and two million retailers, it’s tremendous handy too. 

However, like all fee apps, Venmo has its downfalls.

For instance, there are charges for some transactions, and it may be tough to cancel funds. And like different fee apps, customers must pay attention to scams.

Is Venmo best for you? With so many fee apps accessible, it’s powerful to know what’s finest. 

On this article, we’ll have a look at what Venmo is, the way it works, its charges, and extra – so you’ll be able to resolve if it’s match for you. 

A Venmo Evaluate

A woman uses a smartphone to send and receive money. financial app concept

Venmo is a peer-to-peer cell fee app designed to ship and obtain cash from household, mates, and licensed retailers.

It’s a handy method to break up payments with mates or ship cash to household. So long as an individual is a Venmo person, you’ll be able to pay or request cash from them. Plus, you need to use it to purchase gadgets from accepted retailers.

As soon as your Venmo account is about up, you may make funds out of your checking account, debit card, or bank card. And you may switch the cash you obtain on to your checking account.

The excellent news is Venmo doesn’t cost recurring month-to-month or annual charges. However some transactions have prices, like bank card funds and prompt financial institution transfers.

The social element of Venmo units it aside. Like social media platforms, customers can add mates. And for every transaction, you’ll be able to like, remark, and message one another.

Funds may seem on a public feed, although this characteristic is elective in privateness settings.

How does Venmo work?

Venmo is a mobile-only app that works on Android and iOS smartphones. When you obtain the app, it’s straightforward to arrange and user-friendly.

To get began with Venmo, obtain the app and arrange your account. Then, hyperlink Venmo to your checking account, debit card, or bank card.

When you’ve accomplished this step, you’ll be able to instantly ship or obtain cash.

Utilizing Venmo to ship and obtain cash

Sending and receiving cash on the Venmo app is intuitive.

Use the Pay/Request button on the backside of the house web page of the Venmo app. Subsequent, seek for or enter the opposite celebration’s e mail, Venmo username, or cellphone quantity – or scan their Venmo QR code.

Lastly, add the greenback quantity and full the fee or request.

You need to use your Venmo account steadiness, checking account, or bank card to ship cash. However in case you pay with a bank card, there’s a price.

If you obtain cash, you’ll be able to maintain it in your Venmo steadiness or switch it to your linked checking account.

Common transfers are free and normally take one to a few days. However prompt transfers carry a price. It’s additionally essential to know your bank card firm might deal with a lot of these funds as money advances.

Venmo charges

Opening a Venmo account is free, and there are not any recurring charges. Many forms of transactions are free as properly.

For instance, making funds together with your Venmo steadiness, debit card, or checking account is free. And there are not any charges for transferring cash from Venmo to your financial institution in case you select a commonplace financial institution switch (1-3 days). 

But, some transactions carry charges:

  • Bank card charges. If you pay with a bank card, there’s a 3% price.
  • Immediate Switch charges. For those who immediately switch your Venmo steadiness to your checking account, there’s a 1.75% price (minimal $0.25, most $25).

(Venmo additionally prices accepted retailers a 1.9% price + $0.10 for every transaction.)

Different Venmo options

The app’s major capabilities are sending and receiving cash and paying accepted retailers. 

However different lesser-known and used options embrace:

  • Direct deposits into your Venmo account
  • Money-a-check deposits
  • Shopping for or promoting cryptocurrency (you’ll be able to’t use crypto to make purchases)

Direct deposits to your Venmo account don’t value something, however charges apply to verify deposits and crypto transactions.

Is Venmo protected?

Any on-line cash app might be susceptible to safety points and scams. Venmo isn’t any exception, however they’ve security measures in place to forestall issues.* 

Venmo makes use of encryption to maintain customers’ info and accounts protected. And the app has built-in security measures, like multi-factor authentication.

Additionally, privateness settings permit customers to make their transactions non-public reasonably than public.

But, like several on-line platform, Venmo customers ought to take additional safety precautions. Listed below are some recommendations:

  • Concentrate on widespread scams
  • Maintain privateness settings on “non-public”
  • Safeguard password and private info
  • Switch cash out of Venmo recurrently
  • Solely make transfers with folks you already know and belief
  • Use multi-factor authentication and a PIN

*In 2016 and 2018, the Federal Commerce Fee (FTC) settled on safety and privateness points with Venmo and its father or mother firm, Paypal. Consequently, Venmo is at present audited by a 3rd celebration for safety and privateness points.

Is Venmo best for you? The professionals and cons

Utilizing Venmo for funds has its benefits and drawbacks. Take a look at the professionals and cons under to assist resolve if it’s best for you. 

Execs

  • Fast funds. Funds normally arrive in a recipient’s account instantly. However it may take one to a few days for transfers.
  • Simple to make use of platform. Venmo’s cell app is intuitive and simple to arrange.
  • Free companies. No recurring charges, and it’s free to ship and obtain cash in case you don’t use a bank card or prompt switch.
  • Broad person base. It’s a preferred fee app with over 80 million customers.
  • Use to pay retailers. A number of web sites and retailers, like Uber Eats, Poshmark, and CVS, settle for Venmo funds.
  • Examine deposit & financial institution switch options. Deposit checks and switch cash into your Venmo steadiness, and it’s FDIC insured. Charges apply to verify deposits. (Notice: funds made to you might be not FDIC insured.)
  • Venmo affords its personal rewards credit score and debit playing cards. Money-back playing cards are linked to your Venmo account.

Cons

  • No fee safety. There’s no fee safety in case you pay for an merchandise or service and are dissatisfied or don’t obtain it.
  • It’s tough to cancel funds. For those who mistakenly pay the flawed particular person or the inaccurate quantity, you get your a refund provided that the recipient agrees to return it.
  • Solely accessible within the U.S. No worldwide transactions are allowed. Customers should dwell within the U.S. with a U.S. cellphone quantity and U.S. checking account.
  • No earned curiosity. Venmo doesn’t pay curiosity on account balances.
  • Transactions could also be public. Examine the default settings within the Privateness Settings. If set to “public,” anybody can see your transactions; different choices are “non-public” and “mates.”
  • Examine deposit charges. You pay charges for verify deposits.
  • Cellular-only. You possibly can signal into your account on Venmo’s web site from a desktop or laptop computer. However you’ll be able to solely ship and request cash on the cell app.

My Expertise with Venmo

I take pleasure in utilizing Venmo to ship and obtain cash with family and friends. And I take advantage of it to pay distributors at small, native companies.

I prefer it most for its comfort—it’s tremendous straightforward to ship and obtain cash, and the funds are usually obtained immediately. 

Plus, I like that Venmo is free. I by no means pay charges since I don’t use them for enterprise functions, and I don’t pay with a bank card. Additionally, I solely use commonplace (1-3 day) financial institution transfers.

Venmo is tremendous helpful for paying somebody again or for issues like splitting a restaurant invoice.

And, since I not often have money, I additionally like having the ability to pay with Venmo at small companies. On this regard, I usually use it on the farmer’s market, espresso outlets, and even roadside stands.

I maintain my transactions within the “non-public” setting for safety functions. And once I ship cash, I double-check it’s going to the proper celebration since there’s no recourse for errors.

To protect towards getting my account hacked, I take advantage of a pin and face ID and maintain my Venmo account steadiness at $0 more often than not.

And if one thing appears bizarre or completely different, I Google it to see if it’s legit or a phishing rip-off.

Sadly, in case you make a mistake or get scammed on Venmo, they provide little person safety. And that is the world the place it may use essentially the most enchancment.

Since I solely use Venmo’s primary pay and request possibility, I can’t evaluate the verify and direct deposit options. Additionally, I don’t have a Venmo credit score or debit card and don’t use it to purchase or promote cryptocurrency.

In my expertise, Venmo is a good app for sending and receiving funds with folks you already know. It’s additionally helpful for transactions with trusted companies. 

I recognize that it’s easy, quick, and free – and preferrred for these instances once I don’t have money.

Closing ideas

Of all of the fee apps on the market, Venmo is a best choice for many individuals. Its comfort, ease of use, and free companies stand out among the many different choices.

So, in case you’re conscious of and guard towards Venmo’s pitfalls, it’s price contemplating.

Subsequent: Credit score Card Rewards Program Errors [+ how to avoid]

Amanda Headshot

Article written by Amanda

Amanda is a crew member of Ladies Who Cash and the founder and blogger behind Why We Cash. She enjoys writing about happiness, values, cash, and actual property.

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