Understanding Venmo: How it works, fees involved, safety features

Home
»
Stories
»
2024
»
October

GLOBAL INDUSTRY NEWS

The National Right to Work Legal Defense Foundation announces NLRB-scheduled vote to remove union officials

Families recount the horror of MH17 ten years on - Airline Ratings

777-9 Enters Certification Flight Testing - AVweb

Kompass Kapital Sets New Course with Airshare Investment

Qatar Airways Landing An A350 In Hamburg Makes A Powerful Statement - Airline Ratings

EBAA Backs Dassault's Sustainability Lawsuit against European Commission | AIN

American Airlines Now Lets You Earn And Spend Miles On Concerts And Events

Boeing agrees to plead guilty to defrauding the FAA but escapes punishment sought by victims’ families | CNN Business

IATA partners with Aviation Sustainability Forum to tackle cabin waste

Qatar Airways In Talks To Buy 20% Of Virgin Australia - Airline Ratings

Boeing Will Buy Spirit AeroSystems For $4.7 Billion In Stock & Airbus Enters $559 Million Agreement For Its Parts

Bombardier Global Jet Production Stops in Toronto as Union Workers Strike | AIN

Justice Department To Offer Boeing a Plea Deal Related to Max Crashes

Plane diverted to Brazil after turbulence injures 30

As air taxi services make progress in U.S., no timeline set for liftoff over L.A. traffic

Global Industry News

Understanding Venmo: How it works, fees involved, safety features

Research

Christine Gallipeau Senior editor | The Points Guy

By Sky Industry News

Oct 17, 2024

Venmo, a popular money transfer app, facilitates easy and quick transactions among users. Owned by PayPal since 2013, Venmo is recognized for its mobile-first design and social media-like news feed that publicly displays transactions unless set to private.

The app operates by linking bank accounts or cards to a Venmo account. Users can send money without maintaining a balance, debiting linked cards as needed. Sending money from a bank account or debit card is free, while credit card transactions incur a 3% fee.

Venmo allows up to two accounts per person under certain conditions, such as having a joint bank account with another user or owning a business. Users can add money to their Venmo account via debit card, check, or direct deposit.

Get the Newsletter

Sign-up to receive weekly round up of news from Sky Industry News

By submitting, you agree to our Privacy Policy and Terms of Service. By providing your phone number you are opting in and consenting to receive recurring SMS/MMS messages, including automated texts, to that number from our short code. Msg & data rates may apply. Reply HELP for help, STOP to end. SMS opt-in will not be sold, rented, or shared.

Regarding fees, credit card usage incurs costs, and some issuers may treat Venmo payments as cash advances with associated fees and higher interest rates. It's advisable to test small transactions first to check how they are coded by the issuer.

Venmo offers rewards through its debit and credit cards. The debit card provides cash back at select retailers like Target and Sam's Club. The credit card earns rewards across various categories with no annual fee.

Security measures include transaction encryption and options for password protection or biometric/PIN-based security for the app. Privacy settings allow control over transaction visibility.

Though both owned by PayPal, Venmo and PayPal differ in operation and fees. Venmo charges no fees for bank account or debit card transfers but imposes a 3% fee on credit cards. PayPal's fees vary based on payment methods and international transfers.

In conclusion, Venmo offers an accessible service for mobile users with free transactions in most cases but includes fees for credit card use. It also provides rewards opportunities while ensuring data security.