You can use Venmo for peer-to-peer and instant payments. When you send or request money, say, for splitting a bill between your friends for movies, dinner, rent, tickets, etc., it is the go-to app. After its immense success, the subsidiary of Paypal launched its Debit card in 2018. But, there have been problems with Venmo in the past. From privacy issues to ease of use, this review is all about the pros and cons of the Venmo App.
Venmo, a child app from Paypal, is a peer-to-peer mobile payment app available in the United States, Canada, and Australia. It allows users to send and receive money from one another digitally. The corporate headquarters for Venmo is located in San Mateo, California.
The concept for Venmo was invented by Andrew Kortina and Iqram Magdon-Ismail when the two were students at the University of Pennsylvania. In 2010, they created a mobile application they named Venmo. A year later, in 2011, Kortina and Magdon-Ismail began working on Venmo as an official company called Braintree Payments. Unlike PayPal, which facilitates transactions between buyers and sellers online, Venmo focuses on person-to-person payments.
To use Venmo, one must go through the registration process, which requires an email and a phone number. Once registered, Venmo will require users to set up their payment method: credit/debit card or bank account.
Transactions between two Venmo accounts are free; however, transactions between a Venmo account and a bank account incur the standard 3% fee of most credit/debit card transactions. Transactions are free if you connect your bank with your checking or savings account.
Many people use Venmo to send funds to friends and families residing within the states. The best part is, you can do the transfer instantly. It's time to look at the pros of the Venmo app and know why you should have it.
Venmo's mobile interface and user-friendly layout make it easy for users to send and receive money. The application allows users to select which contacts they want to send or request money from and the amount of money. To ensure convenient transactions, the current balance appears alongside other transaction details such as date and time.
Transactions made on Venmo are completed through a virtual account linked to either your bank account or credit/debit card. This way, you don't have to carry cash with you to make a payment or receive a payment; all you need is your phone.
In order to use Venmo, you must connect your phone number with your associated checking account. However, you are not required to provide any other personal information. The app also automatically encrypts all account information so that no one else can read it.
There are no monthly or annual charges associated with Venmo. There's no cost to transfer money from a bank account, debit card, or Venmo balance. The 3% fee charged by credit cards is a standard practice among payment apps. Unless you choose an immediate payment instead of a typical transfer, there's also no charge for receiving or sending the funds.
If you want to track your previous payments, Venmo deserves to be on your smartphone. When you use Venmo to send or receive money, a record of that transaction will appear in your history, just like email. This history allows you to keep track of your spending habits so you can manage your account easily.
There are a few cons of Venmo if your account is hacked and you're not notified, you'll have no idea, and the hacker could use your funds. This is a problem because you need to know if there's any unauthorized activity on your account. Some other disadvantages you will face while using venom are mentioned below.
Because most transactions are completed through an encrypted system, your password recovery may become difficult if you forget it; however, there is an option for recovering your password through security questions.
Some users have complained that they were charged for transactions they did not agree to, such as charges from strangers who took advantage of the contact-sharing feature in Venmo. However, Venmo does allow you to report any unauthorized charges and get your money back if necessary.
If you want to access your funds quickly, then transferring them directly into your checking account may be best for you. However, this takes up to 3 days which is much longer than many other popular peer-to-peer payment apps.
Although Venmo users have up to 10 days to send or receive money, there is a possibility that it may take longer if you are sending/receiving during busy times such as weekends or public holidays.
If you accidentally sent the wrong amount of money or the wrong contact, your only option is to refund that transaction through another payment method; Venmo cannot cancel it.
People who want a simple way to send and receive money with friends and family. Venmo checks all the boxes when it comes to peer-to-peer payments. It offers debit cards, credit cards, and bank account transfers. It's quick and simple to use. Last but not least, it has a large user base, so many of your contacts may already be using it. Given how popular Venmo is, it's a payments app you should add to your smartphone.
There is a cost to sending money by credit card. Venmo charges 3% of the total amount to send cash via credit card. In addition, for rapid cash-out transfers to your bank account, Venmo charges a fee.
Venmo was founded as a peer-to-peer payment platform, which means it sends money to friends and family. Its personal accounts are not intended to be used as an online banking solution for small companies. That implies no tax records to submit.
Venmo is, in fact, a secure payment method even though it may appear to be dangerous to use real money through an app. This is because Venmo uses data encryption technology to safeguard your account information, ensuring that no one can access your credit card or bank account.
When you make a money payment over Venmo, you'll have to pay a 3% fee, but you won't if the transaction is funded with a Venmo balance, bank account, or debit card. However, when consumers use their credit cards to send money, they are not exempt from paying this fee.