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What is Venmo?

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What Is Venmo?
Venmo is a mobile application that allows you to send money to friends and family.
By Chanelle Bessette Lead Writer/Spokesperson Banking, checking Accounts, Cash management accounts Chanelle Bessette works as a personal finance writer for NerdWallet who writes about banking. She has previously worked for Fortune, Forbes and the Reno Gazette-Journal. She also serves as a spokesperson for the banking team. Her work has appeared in The New York Times, Vox and Apartment Therapy.





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What's Venmo?
Venmo is a mobile application for peer-to-peer, or P2P, money transfers and payments. It's famous because of its time-line feed where users and their connections on the app can send payments to one another using messages using emojis, but do not worry about it: the dollars of the transfers remain confidential.
>> See other transfer options:
How does Venmo work?
Purchases and transfers. Venmo lets you transfer funds to and request money from anyone with a Venmo account. The app is able to help you with the awkward chore of reimbursing family or friends for dinner out or other shared expenses However, it's not meant to purchase or sell goods between people who aren't. Venmo can also be used to make online purchases through certain merchantslike Amazon or on sites with a Venmo payment button similar to PayPal's.
Mobile only. Venmo transactions are processed on its highly reviewed Android and iOS smartphones as well as through iMessage or via Siri voice command. Sign in to Venmo's website from a desktop or mobile device to see transactions, but not make payments or request funds.
U.S. customers only. Venmo, which is owned by PayPal is a payment method that requires both the sender as well as the recipient to reside in the U.S.
Are you interested in using other services?
How do I add funds to my Venmo account?
Pay with your debit card, credit card, or bank account. To send money on Venmo, you need to connect the app with a U.S. bank account, debit card or prepaid debit card, or credit card. If you receive money and want to transfer it from Venmo then you'll need to link a bank account.
Link a checkingaccount, not a savings account. Savings accounts traditionally have an limit of six online transfers or withdrawals each monthly (see more ), although certain banks have lifted these restrictions following changes to federal regulations in 2020.
What are the fees charged by Venmo?
Venmo accepts credit cards and immediate transfer charges. It's possible to avoid fees when using Venmo. However, the service will charge two fees for specific choices:
3.3% per transaction for payments made through peer-to-peer made with credit card. Peer-to peer payments that are funded with a the bank account, debit card or prepaid debit card are completely free. Also, purchases made from merchants that have Venmo payment options are also free. Venmo payment option also are completely free, even when using credit card.
1.75% per transaction, with a 25-cent minimum, for transfers that are instant. The fee is charged when you cash out the Venmo balance to debit cards. These transfers are typically delivered within minutes. There's no cost when you make a normal "cash-out" payment to your bank, though delivery takes one to three days for business.

How do I pay for my purchases with Venmo?
The app displays your balance. As with PayPal, Venmo stores your cash in an app balance which can fund your future payments (if there's enough money) or be cashed out directly to your banking account. Otherwise, the money sits there, and that's not optimal. Unless you use Venmo's Direct Deposit option, where your funds are kept with an affiliated bank the Venmo app balance is not federally insured , as banks are, which means you may lose it in the event of Venmo closing its doors. The money that is in an account with a Venmo account is also not earning interest.
What is the maximum amount you can send with Venmo?
Up to 60k per week. To get started on Venmo the first step is to download the mobile app make a new login, and confirm your phone number, email address and bank account information. The initial maximum transfer for the week will be $299.99 until you verify further your identities. Once you have submitted details such as your Social Security number, ZIP code, and birthdate, you become "verified" and are able to transfer an amount of up to $60,000 per month, in one or multiple transactions.
The maximum amount you can transfer from Venmo to a bank account starts with $999.99 per transaction. However, after verification you can transfer $19,999 per week.
Is Venmo secure?
App security features. Some of the security measures include PIN- and fingerprint-based logins and . If your phone is lost or stolen and you do not have these security features in place you can disable the access of your account logging in to the Venmo website and altering the permissions settings.
the parent firm of Venmo, PayPal, reached a settlement in 2018 with the Federal Trade Commission over complaints that users' access to their funds was delayed without notice, and that Venmo had misled customers about how to maintain privacy settings for their transactions.
The social feed function. Venmo offers social media features, including a feed of payments involving people you're connected to on Venmo. However, you are able to alter your privacy settings to ensure that the transactions remain "private" (visible to the sender and recipients) or are visible for "friends" (sender recipients, senders as well as Venmo connection). Audience settings for past transactions are able to be modified retroactively.
Does Venmo provide a debit or credit card?
Yes, it does offer both. Venmo has a debit card that works for U.S. purchases anywhere that accepts Mastercard.
The optional Venmo credit card lets users to earn cashback in various categories of spending, with those rewards deposited into the Venmo account. Look up
A former NerdWallet journalist Caren Weiner Campbell wrote this article.


About the writer: Chanelle Bessette is a personal finance writer for NerdWallet that covers banking. She specializes in checking and cash management accounts.







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