How To Use Venmo

Venmo is a peer-to-peer digital payment mobile application available in The United States with more than 80 million users. It is arguably one of the most popular in The United States. The digital wallet service is owned by Paypal and its offers go beyond peer-to-peer transfer. It recently introduced a Venmo card and QR payment option. Let’s find out how it works and answer a few questions.

What is Venmo?

The digital payment software application is a cashless solution that enables its users to split bills, pay for items, send and receive money. Indeed, just like Cash App or Zelle you can use the app to send and receive money from different people such as friends and family registered on the app. The setup is quick and free. Some small businesses also use Venmo to receive payments.

  • What does Venmo stand for?

The acronym of the peer-to-peer payment app is the result of the combination of two Latin words that represents what the software application is. In fact, the name comes from vendere, a Latin word for “to sell,” and “mo”  a Latin expression for mobile.

However, the application has a social feature that makes it unique. In fact, it is commonly known among millennials as “The social media for peer-to-peer payment“. Nevertheless, users can always adjust their privacy settings.

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  • Social media features

How Does Venmo Work?

To effectively utilize the application, you need to have a smartphone. Then download the application on apple store or google play depending on the type of phone you have.

Fill in your basic information, you will be asked to input your bank account details to complete the registration process. Once the registration is successfully completed, you will be able to send and receive money immediately.

However, in recent years, the application has considerably expanded its capabilities.

In addition to moving money, you also can:

  • Make purchases with Venmo’s Mastercard debit card anywhere in the U.S. where Mastercard is accepted
  • Pay for purchases through apps, and mobile websites from authorized the application partners
  • Use an in-store QR code, or Venmo card to make a purchase
  • Cash certain checks after you’ve verified your identity or setting up direct deposit
  • Sign up for direct deposit for your paycheck to go straight to your account, up to two days earlier than your usual payday
  • you can buy, sell or hold cryptocurrencies through Venmo but for now the only available cryptocurrencies available on Venmo are Bitcoin, Ethereum, Litecoin and Bitcoin Cash .
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Is a venmo debit card free?

They are no fees required to apply for the card. It is absolutely free. Nonetheless, some fees might apply for the use of the card. In addition, some transactions fees could apply.

Who Can Use Venmo?

The software application has three main requirements.

 You must:

  1. Be located in the U.S.
  2. Have an active smartphone phone
  3. Be at least 18 years old (in most cases)
  4. You must have a valid U.S bank account

Finally, to complete your registration process, you will be asked to verify your identity with your social security number, home address, and a government-issued ID.

  • Why is Venmo asking for my SSN?

It is a one-time security check feature that helps most peer-to-peer digital payments to confirm users’ identities and fulfill federal regulations. Yet, it is uncommon they will ask for a Social Security Number.

However, if they do ask for your SSN, it’s because you’ve met one of the following requirements:

  • Send $300 or more during a rolling seven-day period
  • Transfer at least $1,000 to your bank within a week
  • Create a group account

What banks take Venmo?

Normally, the application works with any active bank account or credit union account without any major restriction. However, the financial institution that holds your bank account must be based in The United States.

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  • How do I get my money out of Venmo?

Generally, they are two options available for you, should decide to take out your money from Venmo.

  1. Instant transfer to your eligible bank account or debit card(1.5% fees applied)
  2. Standard transfer through the ACH network to your verified checking account (typically the money lands in your bank account between 1-3 business days after you initiated the transfer.)

How much does venmo charge per transaction?

Sending money over Venmo triggers a standard 3% fee, but the company waives that expense when the transaction is funded with a Venmo balance, a bank account, or a debit card.

The complete fee structure can be represented as follow:

  • 3% fee when you use your credit card to send money to someone
  • 1% fee for using the check-cashing feature for faster deposits of payroll and government checks
  • 5% for using the check-cashing feature for faster deposits of non-payroll and non-government checks
  • 1.5% for instant money transfer from your mobile application account to your eligible linked debit card or bank account
  • 2.3% for buying and selling cryptocurrencies

The minimum acceptance transactional amount is $5.

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  • Can you use Venmo on Amazon?

Yes, you can. Paypal has partnered with Amazon to allow U.S. shoppers to pay with Venmo at all Amazon stores including online. Nevertheless, for in-store purchases, you just scan your Venmo QR code at checkout to pay touch-free or use Venmo card.

  • Can you use Venmo at Walmart?

Walmart accepts Venmo as a payment option. For in-store transactions, scan the QR code at the self-checkout counter. For online purchases select PayPal at checkout and then select Venmo from the PayPal page.

What’s the difference between PayPal and Venmo?

Venmo payments can only be initiated with the mobile app, whereas PayPal payments can be made through the app or the website. PayPal can also be used as payment with a wide variety of online merchants, and even for QR code purchases in-store.

Conclusion

In the space of digital payment, Venmo has being growing steadily. Indeed, the app leverages the unique value proposition of Paypal.

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