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In this guide we run through how to use Venmo, a digital wallet and financial services app, to send money. As a fast, free and easy way to move funds around, this mobile money app is a popular US-based payment platform, and we outline how to utilise its money transfer functions.
What is Venmo?
Venmo is an American mobile payment service which functions primarily as a digital wallet. Founded in 2009, before being acquired by PayPalin 2013, the Venmo app mimics familiar social media features and facilitates convenient payment functions, such as peer-to-peer (also known as P2P) money transfers and in-store purchases. After over a decade in the industry, the company continues to prioritise their core objective: simplifying the process of sending and receiving money between friends and family. This means instant payments and transfers to friends is relatively easy.
The Venmo app is free to download and available for both iPhone and Android. All associated transaction fees and rates are displayed for review ahead of setting up an account. If you are happy with the fees as well as the app's terms and conditions, you can create an account within minutes.
How Does Venmo Compare to Other P2P Apps?
In this comparison, we pit Venmo against Zelle, another mobile payment provider popular within the U.S. Find out how Venmo fares against one of it’s biggest competitors...
Venmo Exchange Rates and Fees
Venmo can only be used to send or receive US Dollars. Exchange rates are not applicable. But you will be charged a percentage-based fee for every applicable Venmo transaction.
Transfer Fees
Venmo offers an exceptionally simple fee structure.
Transfers funded by credit cards: 3% flat fee.
Instant Venmo transfers: 1% flat fee, minimum $0.25
You will not pay any fees for transfers using funds deposited into your Venmo account. It’s also free for transfers funded by bank transfers, debit cards, or most prepaid cards. Furthermore, merchant payments are completely free with Venmo, even if funded by a credit card.
Additional Costs
There are no additional costs for using Venmo.
How Do Venmo Transfer Fees Compare to Using a Money Transfer Provider?
Venmo is a relatively inexpensive service. If you can avoid using credit cards to fund Venmo transfers, you will never spend more than 1% of transaction balances for Venmo’s services.
One great way to send money with Venmo is to simply deposit money into your Venmo account. Venmo can store your money in an in-app wallet, which you can then use to transfer money and make purchases or withdrawals. The only drawback is that you will have to wait a few days if you want to withdraw your funds without the 1% fee. If you don’t mind waiting, Venmo is free.
When it comes to the 3% credit card payment fee, Venmo is average. Most similar merchant services charge around 3% for credit card transactions.
Venmo Pros and Cons
- Free money transfers are always better than money transfers that you need to pay for.
- Instant transfers will have your funds delivered to an eligible US bank account or any Visa or MasterCard debit card within 30 minutes.
- Easy online purchases are a great addition for users who use Venmo regularly.
- A lack of federal banking insurance means that if Venmo were to go bankrupt, you would lose all the money in your account. Venmo isn’t insured like a bank account is. So, leaving too much money in your Venmo account would not be ideal.
- In some cases, there are simpler options for money transfers in the US. However, Venmo is the largest US P2P transfer service.
- You cannot pay people from the Venmo website. You must use one of the mobile apps.
How Do You Add Money to Your Venmo Balance?
You can connect your bank account to your Venmo account to add funds to your balance. Adding money from your bank account to your Venmo account can take 2 - 3 working days, the estimated arrival date is presented before you submit the transfer.
Alternatively, any funds you receive via Venmo from friends and family can remain in your account, acting as an account balance to draw from.
Who Can You Send Money to With Venmo?
Venmo is designed to predominately serve the purpose of streamlining and simplifying peer-to-peer payments. The company emphasises the importance of knowing the person you are sending your money to. This is because, unlike other money transfer apps, Venmo is best suited to casual payments among acquaintances.
On their website, Venmo offers the following examples of suitable scenarios to send money using Venmo:
Paying your friend half of a cab fare
Splitting a lunch bill
Sending your roommate your half of the rent
Can I Make International Money Transfers With Venmo?
Venmo is popular with customers who wish to send money to other people in the USA but unfortunately the app does not support international money transfers.
How Long Does It Take to Send Money With Venmo?
If you have pre existing or pre loaded funds in your Venmo account, payments can be made instantly. If you are sending money using an external payment method - bank account or card - the funds can take between 2 to 3 days to be deposited into your payee’s account.
How Much Does It Cost to Send Money With Venmo?
The Venmo app is free to download and use. Any fees associated with Venmo’s money transfer services are listed in full on this webpage.
How to Open an Account and Send Money With the Venmo App?
Opening an Account With Venmo
To open an account, you need to download one of Venmo’s mobile apps. You need a mobile Apple or Android device, as Venmo doesn’t have a Windows app.
Once you open the Venmo app, you will be prompted to either sign in or create a new account.
When you choose to create a new account, you will be prompted to provide all the necessary information. You will need to provide a phone number and email address. Lastly, you will need to attach and verify your bank account.
Sending Money With Venmo
Select “Pay or Request”
Add Recipient
Add the Amount
Select “Pay”
Confirmation of Transfer
Additional Services
After you’ve gone through all the above steps, you can start using Venmo for online merchant payments as well.
Customer Service Details for Users of Venmo
Phone: (855) 812-4430 (Monday–Friday, 10:00am–6:00pm EST)
Email: You must fill out a support ticket. Venmo customer service reps will then contact you by email. You can fill out a support ticket here.
Other Apps to Send Money Abroad
Summary
Sending money with the Venmo app is straightforward and convenient for US customers looking to make domestic money transfers. The app is designed to be easy to use, encouraging fun and social interactions between users. In addition to this, setting up a Venmo account takes only a matter of minutes.
Having said this, money can only be sent from one Venmo user to another, and both must be based in the US. It is not possible to transfer money to bank accounts, or overseas, using this app. If you are looking to make an international money transfer from within America, check out our comparison tool to find the best deal for you, and have a read of our guide to the most used international money transfers companies in the US.
