Do You Venmo? A simple solution to ship and obtain cash

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 troublesome to cancel funds. And like different fee apps, customers have to concentrate on scams.

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

On this article, we’ll take a look at what Venmo is, the way it works, its charges, and extra – so you may determine if it’s an excellent match for you. 

A Venmo Assessment

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 solution to break up payments with mates or ship cash to household. So long as an individual is a Venmo consumer, you may pay or request cash from them. Plus, you should utilize it to purchase gadgets from authorized retailers.

As soon as your Venmo account is ready up, you can also 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 part of Venmo units it aside. Like social media platforms, customers can add mates. And for every transaction, you may like, remark, and message one another.

Funds may seem on a public feed, although this function 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 may 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 occasion’s e mail, Venmo username, or telephone quantity – or scan their Venmo QR code.

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

You should utilize your Venmo account stability, checking account, or bank card to ship cash. However in case you pay with a bank card, there’s a charge.

Once you obtain cash, you may hold it in your Venmo stability or switch it to your linked checking account.

Common transfers are free and normally take one to 3 days. However prompt transfers carry a charge. It’s additionally necessary to grasp your bank card firm might deal with some of these funds as money advances.

Venmo charges

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

For instance, making funds together with your Venmo stability, 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 customary financial institution switch (1-3 days). 

But, some transactions carry charges:

• Bank card charges. Once you pay with a bank card, there’s a 3% charge.

• Prompt Switch charges. In the event you immediately switch your Venmo stability to your checking account, there’s a 1.75% charge (minimal $0.25, most $25).

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

Different Venmo options

The app’s main features are sending and receiving cash and paying authorized 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 may’t use crypto to make purchases)

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

Is Venmo protected?

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

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

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

But, like all on-line platform, Venmo customers ought to take further safety precautions. Listed below are some options:

• Pay attention to frequent scams
• Maintain privateness settings on “non-public”
• Safeguard password and private info

• Switch cash out of Venmo commonly
• Solely make transfers with folks you understand 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 mum or dad firm, Paypal. Consequently, Venmo is at present audited by a 3rd occasion for safety and privateness points.

Is Venmo best for you? The professionals and cons

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

Execs

• Fast funds. Funds normally arrive in a recipient’s account instantly. However it might take one to 3 days for transfers.

• Straightforward to make use of platform. Venmo’s cell app is intuitive and simple to arrange.

• Free providers. 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 consumer 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.

• Test deposit & financial institution switch options. Deposit checks and switch cash into your Venmo stability, and it’s FDIC insured. Charges apply to examine deposits. (Notice: funds made to you’re not FDIC insured.)

• Venmo presents 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 troublesome to cancel funds. In the event you mistakenly pay the unsuitable particular person or the wrong 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 stay within the U.S. with a U.S. telephone quantity and U.S. checking account.

• No earned curiosity. Venmo doesn’t pay curiosity on account balances.

• Transactions could also be public. Test the default settings within the Privateness Settings. If set to “public,” anybody can see your transactions; different choices are “non-public” and “mates.”

• Test deposit charges. You pay charges for examine deposits.

• Cellular-only. You possibly can signal into your account on Venmo’s web site from a desktop or laptop computer. However you may solely ship and request cash on the cell app.

My Expertise with Venmo

I get pleasure from 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 sometimes acquired immediately. 

Plus, I really 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 customary (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 hardly ever have money, I additionally like with the ability to pay with Venmo at small companies. On this regard, I usually use it on the farmer’s market, espresso retailers, and even roadside stands.

I hold my transactions within the “non-public” setting for safety functions. And after I ship cash, I double-check it’s going to the right occasion since there’s no recourse for errors.

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

And if one thing appears bizarre or totally 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 consumer safety. And that is the realm 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 examine 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 superb app for sending and receiving funds with folks you understand. It’s additionally helpful for transactions with trusted companies. 

I admire that it’s easy, quick, and free – and excellent for these instances after 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 providers stand out among the many different choices.

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

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

Article written by Amanda

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