Introducing Venmo, the app that revolutionizes the way you send and receive cash from friends and even for business transactions. Whether you need to split a rideshare fare or collect what your friend owes you for dinner, Venmo is the mobile payment service that makes it easy and convenient. But before diving in, let’s explore how Venmo works and its pros and cons.
How does Venmo work? Send and receive money in 6 easy steps
Venmo is designed for mobile devices, allowing you to easily split checks or pay for items that you would typically use cash for. Here’s a step-by-step guide on how to send and receive money with Venmo:
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Set up your account: Open a Venmo account through the mobile app and provide the necessary information. You can customize your account by adding a profile picture, modifying privacy settings, or changing your username. Linking a bank account is necessary to send and transfer money out of Venmo.
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Hit the “Pay or Request” button: Whether you’re using the app or website, click the blue button with a V, similar to Venmo’s logo.
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Identify the person you want to pay: Search your friends list, scan their Venmo QR code, or use their email or phone number. Double-check the recipient before proceeding.
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Choose an amount to send or request: Enter the desired amount and add a note explaining the purpose of the payment.
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Check your privacy level: Adjust your privacy settings to determine who can see your transactions.
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Confirm the transaction: Choose to request payment or make one and receive a confirmation via email.
Venmo pros and cons
Before committing to a cash app, it’s essential to consider the benefits and drawbacks. Here are the pros and cons of using Venmo:
Pros:
- Safe to use
- Fast and convenient
- Can sign up for a Venmo debit or credit card
- Can be used at select businesses
Cons:
- Not every transaction is free
- Unable to cancel payments
- No international payments or requests
How does Venmo make money?
Venmo primarily generates revenue through fees. Users may incur fees for paying with a credit card or requesting an instant bank transfer. Additionally, Venmo charges fees for certain card transactions, such as ATM withdrawals.
How much does it cost to use Venmo?
Using Venmo is generally free, but there are some fees associated with specific services:
- Instant transfer: Pay a fee of 1.75% of the transferred amount, with a minimum of $0.25 and a maximum of $25.
- Credit card transfers: Sending money using a credit card incurs a 3% fee.
- ATM fees: Out-of-network ATM withdrawals cost $2.50, while over-the-counter cash withdrawals will cost $3.
- Cashing checks: Depositing checks into your Venmo account includes fees ranging from 1% to 5% of the deposited amount, with a $5 minimum, depending on the check type.
Is it safe to use Venmo?
Rest assured, Venmo is a safe platform. The app employs encryption to protect your sensitive information and actively monitors your account for unauthorized transactions. You can also set up a PIN code to add an extra layer of security.
Venmo cards
After opening a Venmo account, you may have the option to get a Venmo debit or credit card. Here’s what you need to know about each:
- The Venmo Mastercard® debit card: Make purchases using funds from your Venmo account and earn cashback on qualifying purchases. You can also choose the card’s color and receive an advance on your paycheck.
- The Venmo credit card: Earn up to 3% cash back on select spending categories, 2% on another category of your choice, and 1% on all other eligible purchases. There are no annual fees, and the categories include travel, groceries, and dining.
How Venmo stacks up
While Venmo is a popular choice, many other similar apps exist. Let’s compare Venmo to two of its competitors:
Venmo vs Paypal
Venmo and Paypal both allow you to send money to friends and family using computers or mobile devices. The key difference is that PayPal enables international money transfers, while Venmo is limited to the United States. Both apps offer comparable fees, debit and credit card options, but Venmo stands out with faster transfer times.
Venmo vs Cash App
Cash App is another peer-to-peer tool that facilitates money transfers. It offers similar fees as Venmo, provides a debit card, and allows for investing in stocks and bitcoin.
In conclusion
Venmo is a convenient app for sending and receiving money at a low cost. While the app is user-friendly, be mindful of potential fees, especially when using credit cards. With its safety measures and optional debit and credit cards, Venmo provides an excellent solution for easy and secure transactions.