Venmo is a mobile payment service by Paypal that allows users to send and receive money as well as enjoy some basic features of social media platforms.
Venmo has been up and running for some time now and is currently one of the most downloaded peer-to-peer (P2P) payment apps in the USA. The app facilitates the easy payment of debts from one app user and to another.
In 2009, Venmo was founded and owned by Paypal inc. and introduced as a text message-based payment delivery system. In March 2012, the team initiated social media features which include commenting, sending emojis, and following friends or family posts. This is a move made by the team to capitalize on the newfound fame of the social media world.
With Venmo, you do not need to worry anymore about how quickly you can get your money back. Your friends can easily make their payments through the app. It could also be about paying your share of the rent, all it takes is just a few touches on your smartphone.
Making a payment on this mobile app has never been anything short of swiftness and ease, it makes splitting the cost of almost anything easy and you can even get to add a few comments to each payment.
Venmo is quite a good alternative to Cash App, except with some little edge over one another. Therefore, one could say it could be a bit difficult pitching the two apps against one another.
Meanwhile, users will be unable to send or transfer money from their venmo to paypal or cash app, but they can use their bank accounts to send payments. You withdraw the cash to your bank account and then send to your paypal or cash app from your account.
In this article, we will try to cover almost every aspect of what you should know about Venmo and how to safely use it.
HOW DOES VENMO WORK?
If you have ever wondered about what Venmo actually does and how it benefits the new generation, then here is the treat for it.
Venmo is a money app with the main purpose of allowing funds transfer among friends, families or those you trust. It fits into the new world especially now that virtually everything can be done online. Talking about a cashless society, it could start from here.
You are in an eatery with some group of friends, they do not hold cash but promise to pay you back once they get funded on Venmo. As a good friend, you can take responsibility while they reimburse you later.
Although the app is mainly used to settle debts among friends and families. Venmo has lots of uses that it is now almost impossible to call it just a payment app among your circle. It could also be used to pay for goods and services if allowed by merchants. It works almost as any mobile payment app would work but with a few downsides which we are going to share in this article.
Venmo users should note their transactions can be seen by the public unless they decide to make it private. If put on a public, People will be able to see who you are sending or receiving payments from and also the purpose for the transactions since notes are more likely to be attached.
You do not need to fund your Venmo wallet. However, when you receive funds and want to withdraw it, you will need to make a withdrawal request right on the app.
You can also link your credit/debit card or bank account to the app. When you send or receive money using a bank account, Venmo balance, or debit card, you will bear no additional cost but a transaction made using a credit card will cost you a 3% fee of the total money transacted.
If you choose not to use the money on your Venmo account now, you are free to keep it until you find the need for it. However, ensure you keep your Venmo account safely.
PROS AND CONS OF VENMO APP
Pros Of Venmo App
- It is very easy to create a Venmo account and get started.
- Venmo has a much smoother payment option.
- It is a dual app that provides both mobile transaction services and social media features.
- It is free to use except when you transact using a credit card.
Cons Of Venmo App
- Payment cannot be canceled once sent to a recipient.
- The transaction could take up to 3 days to process.
- A 3% fee is attached when a credit card is used on Venmo.
- Venmo offers no buyer or seller protection.
- The social feature is almost useless since most people are more likely to keep their transactions private.
- Transaction feeds could provide relevant information about your finance to a possible hacker.
HOW TO AVOID SCAMS AND FRAUDSTERS ON VENMO
Veneno is surely an excellent choice when looking for a good money app. Nonetheless, despite the various security approaches taken by the creators, the Venmo app like any other mobile payment app will always have loopholes that scammers and fraudsters can use to steal from your account.
In most cases, users are more likely to be at fault. Therefore, one must be totally aware of the methods used by fraudulent individuals.
The first step to securing your Venmo account is to treat it as you would do to your bank account. Although, the company is currently using standard security that any financial institution would use, ensure you never reveal any sensitive information to anyone or a third party.
Also, you should avoid clicking on every link that comes your way. Phishing is another way that hackers are most likely to get your account information and login details with Email Phishing being the most common method.
A fraudster will send you an email that would almost look like an email from the developer. You do not want to click on such or enter your details on the page. Just close the email and continue with whatever you are doing. Always go through the official site or app for anything that you may need. To be on a safer side, you can reach out to Venmo Customer Service.
No money app is totally safe, if you are unsure about how to keep your account secure, you can limit your circle to only family, friends, or partners that you can trust.
Common Scams To Watch Out For On Venmo
1. When buying things from a total stranger.
Scam could also occur when buying things. You will be asked to make full or partial payments to receive the goods/services. After making payment, they will send you a fake screenshot showing you shipping details.
2. If an offer is too good to be true.
Avoid Scams offering to increase your money, for instance, someone could ask you to invest your Venmo money for a quick increase. For instance, they may say transfer $200 and in 72 hours, you will get double of the amount you invested. This is a scam and you should not entertain such a request.
It goes by different names: cash wheel, cash flip, pyramid scheme, etc. You will need to be vigilant and internet wise if you really want to keep your money safe.
3. Scam may also occur when selling things to a total stranger.
Another effective way fraud occurs on Venmo is when you sell things to someone and you want payment using Venmo. It is easy for a scammer to fool you into actually thinking payment has been made.
For instance, he could use a stolen card to pay and when the real owner finds out, the person may contact Venmo and the company would have no choice but to refund the money.
They could also show you fake screenshots showing successful payments or even convince you that payment has been made but will only reach you when they have the items. If you are selling things, it is advisable to only sell to verified and trusted persons. For security reasons, you should avoid using Venmo for business or only deal with people you can trust.
4. Changing of profile picture and username to impersonate.
Another likely way to be scammed is when a scammer uses a profile picture or something that represents someone you know. This way, they could request money from you.
How To Avoid Venmo Scams
The first step to avoid a Venmo scam is to guard your information. You should not reveal any sensitive information via any website, link, or other unofficial sources.
If supposed friends request you to send money, you should try to speak to them through their official phone number or double-check to make sure they check out.
Never use Venmo for business deals. If you must, only deal with people you can trust. Avoid total strangers.
If a deal looks too good to be true, it is more likely to be a scam, you should shun it.
HOW SAFE IS VENMO?
There have been questions about if Venmo is safe to use for everyone including sellers. Venmo is completely safe to use as it uses the type of security that financial institutions including banks use.
Although the main intent of the creators is to facilitate payments among trusted friends, families, or partners. When dealing with strangers, you should be vigilant. However, it would be better if you use your Venmo account for those in your circle to help curtail security issues.
You should consider adding an extra layer of security such as PIN number, fingerprint enabled, and avoid adding everyone that comes your way. They will be able to view your transaction history if set public which could give them enough financial information about you. Meanwhile, you could make it private as we have stated before.
By setting up a pin number that is difficult to guess, it would make it harder for a third party to access your account.
SERVICE FEES ON VENMO
It is easy to avoid fees on Venmo if you want to. Basic services are free on the app, but you can be charged when you access premium services. Below are the applicable fees on Venmo:
A 3% service fee will be incurred by you when you send or transfer money using a Credit Card.
Electronic transfer is absolutely free provided it is within the normal processing time which could be available in 1-3 business days. An instant transfer would incur a service fee of 1% (minimum $0.25 fee, maximum $10 fee) of the funds.
VENMO TRANSACTION LIMITS
Accounts that have not been verified will have a weekly spending limit of $299.99. This payment limit also includes p2p transfers and payments to merchants.
Once the Venmo account has been verified using the necessary documents, the maximum spending limit for peer to peer payment will be $4,999.99 and $6,999.99 for both Authorized Merchant Payments and Venmo Mastercard Debit Card Purchases.
The person-to-person per transaction limit is capped at $4,999.99 and $2,999.99 for merchant payments and Venmo Card Purchases.
VENMO APP – DOWNLOAD
Venmo app is available on both Google Play Store and App Store (iPhone and iPad). It is free to download on your device. The app is only available for people living or working in the USA and only compatible with U.S. bank accounts and phone numbers.
If you are traveling out of the states, probably for a visit, you can still download the app using a good VPN. However, you must have already registered or had every requirement with you.
WHAT IS VENMO OFFICIAL WEBSITE?
Almost everything you need is right there on the Venmo app official website including the links to download any of the supported apps.
On the website, you can know almost everything about the money app including the FAQS to give you a better understanding. The Venmo website is www.venmo.com.
HOW TO USE VENMO APP TO SEND MONEY
Step 1 – Set Up Venmo Account
1. Sign Up On Venmo
Once you have downloaded and installed the Venmo app on your device, the next step is to sign up on the app.
To sign up, you will need to open the app from your smartphone and then select your signing up method. You can sign up with Email or Facebook if you want faster registration.
Signing up via email could be more stressful as you will need to provide other vital information such as your first name, last name, email, and so on. With Facebook, you just need to click “continue” and also grant facebook permission.
Click “Next when done. Follow online prompts.
2. Provide Your USA Phone Number
After you have pondered on the User Agreement and Privacy, the next step is to provide a USA phone number. You will need to provide a working phone number as a 4 digit confirmation code will be sent to the number.
Enter the code into the field and click “Submit code”. You now go on to modify settings. It is important to change your generated username to a simple one so it would be easier for you and your circle. There are lots of adjustments you can carry out on this section if you wish or you can choose to do it later.
3. Sync your contacts
After entering your details, you will be able to sync your phone and Facebook contacts. Syncing them makes it easier for you to know who is on Venmo and be able to make payments easily.
If you sign up using email instead of Facebook, the system will prompt you to link your Facebook to Venmo. You can tap, “Not now” or “Ok” depending on what you want.
For the phone number contacts, click “Next” to add contacts to sync. You can skip it if you choose to do it later or never.
Then tap “Done”.
4. Add And Verify Your Bank Account On Venmo
To be able to send and receive money, you should connect your bank to Venmo. Venmo is safe, so there is nothing to worry about adding your bank information to the app.
To add your bank account to the app, log in to the venmo app and click “☰”. Go to settings and then “payment methods”. Tap “Add a bank or card”. Be careful when adding your bank account because If at all a payment is made to a wrong account, it will be on you.
Once you have added the bank account, take your time to cross-check that the account information is correct. Follow the prompts and complete verification.
To verify, click “Transfer balance”, you can make instant or manual verification. If you want to verify using instant verification, you will need to log in to your bank online banking platform using your login details.
For manual verification of bank accounts, users will need to enter their bank routing number and their account number which could take up to 3 days to confirm.
Step 2 – How To Send Money On Venmo
5. Click The Pay Button & Select Recipient
If you have already opened the Venmo app, tap “request or pay icon”. When you click the icon, it will open a list of all your recipients on the app.
You can select just one or multiple recipients. If you are sending money to one recipient, just enter the first name of the recipient and select. For multiple recipients, long-press the first name once it shows up, and then tap each name as they appear. Click “Done” when you are okay with the selections.
6. Enter The Amount
You will need to type in the amount you are sending in the field. If you type in 20, the recipient gets $20. If you are sending change or cents, you will need to add a decimal point after the main amount, for example 20.50.
Additionally, add a note to the payment. A note helps viewers or anyone to understand what the payment is for. It could be, “thanks for the help earlier, here is the cash”.
7. Select Who Can See Your Payment History.
If you leave it at public, it means anyone would be able to view your transaction history when they visit your profile.
You can decide to change to only friends or private if you are uncomfortable with having your payment information in the open. Selecting “friends” means only your Venmo friends will be able to see the history while “private” means only you and the recipient.
8. Click “Pay”
The next step is to confirm the Venmo payment. You can do that by clicking on the blue button on the lower-right side of the screen.
The system will also ask you the second time, but this time showing you the amount you are about to send. If you are satisfied with it, tap “pay” to send the payment on Venmo.
HOW TO TRANSFER MONEY FROM VENMO TO BANK ACCOUNT
You will be able to send money to the bank account linked to your Venmo account provided you have money in your balance.
- To transfer or send your money to your bank account, Tap the “☰” icon or “manage balance” on the app homepage.
- Enter the actual amount you want to send to your bank account.
- You can choose between instant or standard transfer.
- Go through the details to confirm if they are correct.
- Click the “Transfer” button to complete the transfer request.
VENMO DEBIT CARD
Venmo card is a free Mastercard® Debit Card that can be used to purchase online or in the store that allows the use of Mastercard®.
The card is attached to your Venmo account, you can use it to quickly pay from your card. For instance, shopping for a new gadget, e-commerce store or paying for a drink at a restaurant. The card makes it easier for Venmo users to spend the money in their Venmo wallet with ease.
To apply for a Venmo card, open the app from your device. Click the”☰” icon, and then tap “Venmo Debit Card” to apply for the debit card.
The Venmo debit card is free to obtain but there is a service charge when you withdraw from atm or over the counter. A $2.50 ATM Domestic Withdrawal Fee and $3.00 Over the Counter Withdrawal fee applies. Regardless, you can withdraw for free at any MoneyPass® ATM in the United States.
The maximum amount you will be able to withdraw daily is $400.