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Venmo Review – Common Questions And Answers

Venmo Review – Common Questions And Answers

Venmo is a payment processing company. You are given an online wallet that you access through your iOS or Android app. Your Venmo account may be used to pay for things online or in stores, and you may use it to transfer money to other Venmo users. You may use money you have in your Venmo account, or money from linked cards and bank accounts. Just like with PayPal and Skrill, Venmo allows you to pay certain websites and pay for in-app purchases within certain mobile apps. Instead of entering a recipient’s bank information, you may send money using only your recipient’s email address or phone number.

Is Venmo The Same As Paypal

Venmo has a few similarities to PayPal, such as how both give you an online wallet and mobile app. Plus, both allow you to pay websites, apps, and pay in stores. Plus, both allow you to send money to friends and family for free. In addition, just like PayPal, you are able to pay people using only their email address or their phone number.

PayPal is a larger company with a stronger and more secure network. PayPal is also more sophisticated, protected, and is more widely known and accepted. The PayPal app, online system, servers and PayPal networks are more secure. PayPal offers very powerful user protection, it is far more suitable for business use, and it has a far better international-money-transfer function.

Isn’t Venmo Owned By Paypal?

Venmo is owned by PayPal, but is not directly linked with the company. Venmo works on its own payment network, has its own rules, safeguards, and procedures. The Venmo network and payment system is not as advanced, sophisticated or secure as the PayPal network.

There is a fair amount of trust behind the PayPal name, and that trust is partially enjoyed by Venmo through association with PayPal. After all, it is not as if Venmo is owned by a Nigerian pirate company.

The Venmo money-transfer system may not be perfect, but at least its owner is a large brand-named one, which is good because if the owner has a lot to lose, then the owner is more likely to take extra care and attention when providing a service.

Do Offline Stores And Online Stores Accept Venmo?

You may pay at over 2 million online and offline locations in the USA. Venmo may have little to do with PayPal as a whole, by which I mean that you shouldn’t get their reputations mixed up, but PayPal have the connections that have allowed Venmo to be accepted in over 2 million locations in the USA.

Venmo screenshots of the app on a smartphone

How Much Does Venmo Cost And What Are The Venmo’s Fees?

If you are transferring money using the balance on your Venmo account, or if you are transferring using your linked bank card, bank account or prepaid card, then your transfer is free. If you are transferring using your linked credit card, then a 3% fee is charged.

If you are making a purchase with an app using your Venmo account, then there is no charge for that. There are also no fees for receiving money either. There may be a charge for making purchases with your Venmo account if you are buying using a linked credit card, or if you are buying overseas.

Transfer or withdraw money from your Venmo account and there are no fees. If you prefer faster transfers, then you may pay 25 cents to have your money withdrawn into your bank account within two hours.

How Popular Is Venmo Right Now?

Where it is true that Venmo is not nearly as popular as PayPal, Venmo still has its loyal following, and the owners have been aggressively advertising to teens and people in their early twenties.

Venmo has a mixed reputation. It is not as sophisticated as PayPal and their network is not as strong, and Venmo has suffered a security breach or two as a result of this. Still, Venmo has a mostly positive online reputation and it has a strong following with people under the age of twenty.

How Do I Fund My Venmo Account?

Fund your wallet with your bank account. Plus, you may link your bank accounts and your credit cards to your Venmo account. This means that when you pay money or transfer money, the Venmo service will draw money from your accounts in order to make your payment or transfer.

You may send money to your Venmo online account and maintain a balance online. Plus, you may keep money on your account if others have sent it to you. If you have no money in your Venmo account, then you may still make purchases and your first linked bank card/credit card will be charged through Venmo.

How Quickly Will My Money Withdraw To My Bank?

It takes a business day in most cases. If you are using Venmo in the USA, then an ACH transfer is used, and they take one business day. The Venmo company submits the transfer to the Automated Clearing House (ACH) at the end of the working day, and the ACH clears the funds overnight so that your transfer is completed for the next working day.

venmo newsfeed on white smartphones

Is Venmo Safe?

Venmo is safe, but not as safe as PayPal. The security that Venmo has is bank-level security, but PayPal still has the edge because they have invested millions into securing their network. Plus, PayPal has far stricter and more sophisticated user protections in place, whereas Venmo only offers to cover you for up to $50 of loss on your account.

Venmo uses bank-level security encryption both within the app and within the transfer network that is in use. Your financial information is encrypted and is stored on secure servers. You may revoke permission from your mobile device at any time. For example, if you lose your phone, you may go online and revoke permission for Venmo access on your phone.

There is no buyer or seller protection. PayPal protects buyers, sellers, senders and receivers, but Venmo does not. The creators of Venmo suggest that you only send money to people you know because there is little they can do if you are scammed.

Venmo also has a PIN code function you can enable. This means that any user on your phone is unable to use your Venmo account without your pin number.

What About The Venmo Security Breaches?

There have been a few here and there. The most serious were in 2015 and were related to a Chinese scamming group that exploited Venmo’s relaxed attitude to account notifications. A common trick was to have people link their Venmo with a mobile app, steal information from the mobile app, change a user’s information and then drain the account. Here is how it worked:

The Chinese scamming group create a gaming app or hack a gaming app. People pay for in-app purchases using Venmo, and to do that they have to sign in with Venmo. While the user is paying for an in-app purchase, the user is signed in to Venmo, which gives the hacker access to the user’s Venmo account. While signed in, the hacker changes the password for the Venmo account. The Venmo admins had a relaxed attitude to account-information changes and did not bother to email the user about the password change. The scammers then sign in to your Venmo account using a VPN service and using the new password they created. They drain a few accounts, and the user doesn’t notice until his or her bank/credit card calls and asks why they are overdrawn. Nobody knows that the gaming app has been hacked, and nobody can trace how the scamming group got their hands on what is actually a newly changed password.

Do Other Users Need A Venmo Account?

Yes, your recipients do need an Venmo, but they do not need it at the time of sending. Let’s say that you send $100 to your friend using your friend’s email address or phone number. Then, you learn that your friend doesn’t have a Venmo account. In that case, you may wait the required amount of time before your payment is refunded automatically. Or, your friend may sign up for Venmo, log in to his or her account, and claim the payment that you sent.

Can I Pay People In My Smartphone Phone Book?

You may create a list of contacts within your Venmo app. You may enter contacts using their phone number or their email address, and you may sync your phone book with your Venmo contacts to save time. Users are also able to sync their Facebook accounts with their Venmo accounts and add contacts that way too.

Conclusion – Does Venmo Play A Song We Can Sing To?

In my opinion, Venmo is like a watered down version of PayPal. Some may say that Venmo is more suitable for paying your friends because it can be done for free. However, you may also pay family and friends for free using your PayPal account or your PayPal app.

Yet, just because Venmo is like the a watered down version of PayPal doesn’t mean you shouldn’t use it. I agree that the security and protection that Venmo offers is far weaker than with PayPal, but nobody is banning you from using both PayPal and Venmo. For example, if you have friends who use Venmo all the time, then there is no harm in using it too if you wish to transfer money between you and those friends. There are no massive downsides to having a Venmo account. After all, Venmo are not charging maintenance fees, and they are not charging transfer fees.

If I had to choose, I would say PayPal all the way, but nobody says we have to choose, so feel free to use both.

About The Author

Ash The Great

After a varied career in different industries from the hospitality industry to the financial consultancy industry, Ash now spends his days working as a professional writer.

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