Venmo is a payment application that allows users to send and receive money instantaneously. Customers may use their debit and credit card, bank account, or Venmo balances to transfer cash. Once users get the money, it goes into their Venmo account. Users have the option of keeping it or transferring it to their bank account. Venmo even allows users to share invoices as well as other expenditures among a number of individuals. Venmo might be used by multiple people such as roommates to pay their internet fee or divide the tab at a cafe.
Venmo is unique in that it incorporates social media aspects with money transactions. Venmo customers can become friends with one another. There’s a timeline that displays transactions between individuals, and users can add a remark, emoticons, or animating stickers to every payment. Venmo also has privacy controls. Users may make their payments public, just to their friends or only to them and the receiver if they don’t want the transactions to be viewed by everybody.
How Does it Work?
Purchases and transactions. Venmo allows users to send & receive money from anybody with an account. The application can assist with the difficult task of reimbursing relatives or friends for dining out or different shared costs, but it is not designed for random people to purchase or sell products. Venmo may also be used to make online purchases with select businesses, typically on sites that include a payment option that looks like PayPal’s.
Venmo accepts payments through its almost-5-star Android & iOS applications, and through iMessage & Siri voice commands. On a desktop or smartphone, users may log in to Venmo’s site to observe payments, but not actually pay or demand money.
Both the sender and the receiver must be located in the United States to use Venmo, which itself is operated by PayPal.
Venmo has no recurring costs, such as monthly or yearly fees. Sending money from a bank account, debit card, or Venmo account is free. Payment applications charge a 3% fee for credit card transactions, which is common. There are no charges for receiving money or transferring it to someone’s bank account unless they choose a quick transaction over a conventional transfer.
The service has social media elements, such as a feed of payments made by people you’ve linked with on the platform. You may, though, change your privacy settings to make payments “private” (available only to the sender and recipient) or “friends” accessible (sender, recipients, and Venmo connections). It is possible to change audience settings for previous transactions retrospectively.
Venmo, similar to PayPal, keeps track of users’ funds in an in-app balance, and it can be used to finance future payments or withdraw to the user’s bank account. If not, the money will just stay there, which isn’t optimal. Because a Venmo app balance isn’t legally guaranteed such as a bank account, it might be lost if Venmo goes out of business. Funds in a Venmo account do not accrue interest either.
The service features a debit card that may be used anyplace in the United States that takes Mastercard. Although this card is not accessible for everybody, users may put their names on the app’s waitlist.
The Venmo credit card is an additional feature that allows clients to make some money back in a variety of areas, with the earnings being paid into the user’s Venmo balance.
Protection and Customer Service
From 10 a.m. to 6 p.m. EST, customer assistance is provided via phone on weekdays. Alternatively, users may contact the support department by email or chat on the phone application.
PIN & fingerprint-based access choices, as well as two-factor authentication, are included in the app’s security mechanisms. If users do not have such measures in place and their phone is lost or damaged, they may disable access to their accounts by going to Venmo’s site and altering their authorization settings.
In 2018, the FTC (Federal Trade Commission) struck an agreement with Venmo’s parent firm, PayPal, amid concerns that users’ access to money was held with no notice and that Venmo had deceived consumers on how to preserve privacy settings for their payments.
Pros and Cons
- The service’s success stems from its ease of usage. There isn’t much of a training course. It’s free to download and use, and users can start transferring money in moments. The service makes sharing expenditures easier by providing an on-screen calculator while sending or receiving money. Users can also transfer or demand the same amount from every one of them at once if they’re dividing a tab with a few people.
- When users make withdrawals from their accounts, it might take several days (typically 1-3) for the money to be transferred to their bank account. The service enables rapid transactions for a 1% charge, with a minimum of a quarter of a dollar and a maximum of $10, if they need the money immediately.
- Payments may be made at several establishments, such as Uber, GrubHub, Hulu, Poshmark, and Foot Locker.
- Venmo accepts both debit and credit cards.
- Venmo does not accept international transactions. Users have to reside in the US and have a US mobile phone number to establish a Venmo profile. Users may solely transfer their Venmo balance to a bank account in the United States. They will require a different payment application if they wish to transfer money to friends or relatives outside of the US.
- There is absolutely no way to undo or cancel a payment after it has been made. The money is sent to the receiver right away. Venmo suggests asking the receiver for the funds back if users need a payment to be refunded.
- Venmo’s privacy options are not really great. Users’ payments are publicly visible, so any Venmo user may view them. They do not contain the sums, but they do include the sender’s name, and recipient’s name, as well as the note.
SEE ALSO: WorldRemit ReviewShare this article