After acquiring by Braintree in 2013 for 26 Million USD approximately, Venmo has become one of the largest in-use peer-to-peer payment applications for those who do not like to wait in unending lines in banks. It has recently been acquired by PayPal (another foreign payment application platform) for $800 Million. Although there are billions of users on Venmo, some non-social peers still face technical challenges regarding “how does Venmo work?” Hence, if you are one such user, relax! Venmo is a straightforward and effective payment application that you can use without running to the banks or other financial institutions. In this reading, you will find out how to use the Venmo App? Also, how is it different from PayPal?
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Introduction to Venmo App
Venmo App is akin to a digital wallet. Likewise, with a real-time wallet, you can Venmo anytime and anywhere to send and receive money to and from the other party without any glitch or technical hassle. According to the recent statistics, by 2018, Venmo has been joined by 10 million users and is growing by the hour. Venmo is a mobile App that you can download on your smartphone. By setting up your account in Venmo, you have the permission to process monetary transactions online. It has been a widely in-use payment method often preferred by buyers while shopping online.
Not only has Venmo gained its prominence among the millennials and consumers online. However, it has also become famous in the corporate industry for making quick and easy transactions to freelancers hired from other countries, payment to laborers & merchants.
To the reader’s surprise, Venmo has proven effective in the context of users’ privacy and security of data. That’s right! Venmo sign-in requires a username and password, which you will have to enter each time you open the Venmo App. Therefore, in the case of theft or lost & found, any other party will be unwilling to access your Venmo App or transfer money by using the App. Furthermore, each Venmo transaction is confirmed and successful when the App has verified its user.
For the verification process, Venmo asks for several identity-related information such as name, permanent/legal address, Date of Birth, Tax Identification Number, and last but not least, a Social Security Number. Above all, the app is available for all-persuasive smartphone users. It is supportive of both iPhone and Android.
Download now: https://venmo.com
How does Venmo work?
Before you kickstart your Venmo account, it is very significant to know how does Venmo works? As well as is it safe? Or, does Venmo charge any fee? But don’t worry! Because you will get answers to all these questions below. We present a handy guide on how does Venmo works to receive money or to send money? This guide will help you to the advantage of the convenience of payments that this app provides. Not only this, but it also helps its users to keep track of all payments by month and date. Thus, you can budget your expenses well. So, let’s get started:
STEP 1: Account set up and Verification
It is an easy step if you have all the prominent information ready with you. First thing first, download and install Venmo App on your Android or iPhone. Once you have succeeded, open the app and create an account by Venmo sign in or sign up. Now, create a password between 8 to 32 characters. It is recommendable to generate a password that is not easy-to-guess or predictable by your friends, family, or strangers.
After that, enter your registered phone number and verify it by entering the verification code that you will receive. Enter and verify the email address and set up a username. Your account is ready.
STEP 2: Add Bank Account Info and set up
Venmo is a digital wallet. Thus, it is significant to have a bank account in order to use Venmo. To do so, open your Venmo profile. Click on the “Add bank account” option. Select your preferred banking institution. Enter the account number. Venmo will verify your bank account through a one-time-password or code. It is important to note that you must use the number that is linked with your bank account for an easy setup experience.
To make your profile easy-to-recognize by your family and friends, add a profile picture.
STEP 3: Add other funding Resources
Often, bank accounts deny payment because of technical issues at their end. To resolve this, Venmo has now become more compatible to offer the convenience of payment to its users worldwide. Likewise, with a bank account set up, you can also add credit/debit card information for a quick money transfer experience. Don’t worry! Your credit card number will remain safe as you can only see the first and last 3-4 digits of your card. Thus, one cannot scratch it for their own advantage.
STEP 4: Request Money or Pay the money requested from you
Now that your Venmo account is ready-to-use, you can either request money from your family/friends or other contacts available on your iPhone or Android smartphone. To do so, you can open Venmo and search for contact numbers by name. Click on the name. To pay, tap on the “pay” button. You can also tap on “request” money if you want to receive money from the other party.
Enter the monetary amount that you desire to pay or request. Next, you will be asked to add a note. In the “note” section, you can enter the reason for money transactions such as “rent,” “payment for stock,” “food,” “party,” and so on. At last, tap on pay or request money at the bottom to finalize the transaction.
Click on the “view balance” option if you want to see your final balance once the money is either credited or debited to/from your bank account.
STEP 5: Do you want to transfer funds to your bank account?
As mentioned before, Venmo acts like a digital wallet for its millions of users. Therefore, you can enjoy two ways to manage your money in a Venmo account. For example, if you make payments directly through your bank account, you can transfer your Venmo balance to the respective account.
On the other hand, presuming that you are participating to make other payments through Venmo in the future, then you can keep funds in a Venmo wallet for quick and easy money transfer. Apart from this, Venmo also permits its users to add money to Venmo wallet by using a credit card or debit card. All the information, including PIN, remains safe with the user. Therefore, Venmo funds act no less than money in the bank.
How does Venmo Work- What’s on your mind?
Within 5 steps, you can easily learn how to use Venmo. However, there are several concerns related to Venmo that keeps potential users from trusting it with their monetary transactions. After reading how to use Venmo to receive money or send money? You must have a few of the following questions in mind. We have the perfect and satisfying response for you. Let’s find out:
Does Venmo charge a fee?
The answer is yes. Venmo charges its users very negligible fees for different types of transactions. Apart from the following rare cases, Venmo is free.
Charges for Instant bank transaction
When a user sends you money on Venmo, this fund goes to your Venmo wallet. Within 48 hours, this money automatically transfers to your bank account. However, in the event that you want to transfer it instantly to your bank account, you will need to pay instant bank transfer fees, i.e.., 1% of total transaction money or 25 cents (depending on which is higher).
Credit Card transaction charges
When you pay through a credit card, the user is required to 3% of the total transactional account as the credit card processing fees. How does Venmo work to receive money through a credit card? In the event that the other individual is paying you through credit card, then the other party will pay the extra charges.
If you are a merchant
When it comes to how does venmo work for merchant? It can be different. Venmo is highly compatible when you pay a merchant using the same. Thus, when you make a payment to a merchant using Venmo, you do not have to pay extra fees. However, the merchant pays 30 cents or 2.9% of the total money received (whichever is higher).
Paypal Vs. Venmo Vs. Google Pay Wallet
Paypal and Google Pay Wallet are the close competitors of Venmo. Users often deep-seat on the question, which is the best for you? To resolve this, we bring parameters of difference between the three peer-to-peer payment platforms.
Global Monetary Transactions
Venmo is only usable in the United States. It is only applicable for transactions made within the country. Google Pay and PayPal wallet, on the other hand, are supportive of foreign transactions.
Venmo is a free peer-to-peer transaction app as long as you are not using a credit card, instant transfer feature, or as a merchant. Paypal, on the other hand, charges the foreign user (who received money) in the form of currency conversion fees, i.e.., 3.75% maximum. 200 countries use PayPal for business purposes. Google pay wallet is also globally used. It does not charge any transaction fee or merchant fee.
Bottom Line for how does Venmo work?
Venmo is a straightforward peer-to-peer payment application that connects you with your consumers, family, and friends at a better level. Whether you are outstation or stuck somewhere with a high-end need for money, Venmo is your closest partner to serve you with the best features. Download now!