Venmo account started as a free-of-charge peer-to-peer (P2P) payment application available for iOS and Android platforms. For the record, that service is still free! The reason is that users who use a Venmo account to pay participating merchants now number in the millions.
With that said, do note that some other services on Venmo carry a fee. Payments that go through a credit card account rather than a linked bank account or the user’s Venmo account incur a 3% overhead charge on the transaction amount. Also, there also are miscellaneous fees for transferring money instantly from Venmo to a bank and for depositing checks. Furthermore, the Venmo account also issues debit cards and credit cards which are accepted by a growing list of local and national retailers. Those products carry fees too.
Venmo account started as a social payment platform, and peer-to-peer remains free (if you don’t use a payment card) to this date. Venmo account can be used to pay millions of retailers via the app or a debit or credit card. With that said, instant money transfers and check deposits cost extra fees.
How to open a Venmo account?
- Step 1: Install the official application on your device: available for iOS & Android users (Venmo does not have a Windows app)
- Step 2: Launch the Venmo app on your device.
- Step 3: Select the method by which you will register. Then, generate a safe password (it should be between 8 and 20 characters long, contain at least one number or symbol such as (!@#$ percent), and no spaces).
- Step 4: Check that your email address and phone number are correct.
- Step 5: Include and confirm your financial institution’s account.
- Step 6: You can also sign up for Venmo via their official from your PC/laptop.
How does the Venmo account work?
For starters, users can link their Venmo accounts to a credit card, debit card, or checking account after downloading the app. Once enrolled, you can exchange funds in a jiffy, as Venmo is an intermediary for peer-to-peer transactions.
Furthermore, your Venmo balance is a virtual ledger that tracks money transfers on the app. The recipient doesn’t own the money until Venmo sends it to their bank account.
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How to Make a Payment or Make a Request for Money through a Venmo account?
You can send or request money through the Venmo app by first tapping the button labeled “pay” or “request,” and then entering the email address, phone number, or username of the recipient of the transaction.
In case you are the recipient of funds, you have the option of either maintaining the cash in your balance or transferring it to the bank account that is linked to your account. Remember that there is an overhead fee associated with utilizing Instant transfer rather than the more common slower delivery method.
Both your bank account and a debit card can be used to add funds to your Venmo account. Also, funds can be added directly from your debit card.
You don’t need to have the appropriate amounts in your Venmo account to make payments through the mobile app. If a payment requires more money than you have available in your Venmo account, the difference will be deducted from the bank account you have connected to Venmo. If the amount of the transfer is less than or equal to your balance, the platform will use the funds that you have saved there instead. Yes, it’s that simple!
You will be pleased to know that unless you use a credit card that is linked to your account, there is no fee associated with carrying out transactions.