Understanding Venmo Negative Balance and What to Do

Having a negative balance on Venmo can be stressful, but it's not the end of the world. You can recover from it by understanding what caused the negative balance in the first place.

Venmo users can end up with a negative balance when they receive a payment that exceeds their available balance, or when they make a purchase that is later reversed. This can happen if you're not careful about keeping track of your transactions.

If you're facing a negative balance on Venmo, the first step is to review your transaction history to see where the issue started. You can do this by logging into your Venmo account and checking your transaction history.

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If your Venmo account has a negative balance, the fastest way to get it reinstated is to use a debit card to pay back the amount owed.

You can also pay back the amount with your bank account, but keep in mind that these payments can take a few days to process.

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The funds will take 3 to 5 business days to post in your Venmo account, so be patient.

If you can't pay back the full amount, you can make a partial payment by editing the repayment amount.

To do this, tap the payment amount and enter the amount you'd like to pay before selecting Pay.

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Venmo is going after users with negative balances, a move that's likely to spark controversy.

This decision is part of PayPal's efforts to turn Venmo into a profit engine, as the service is still losing money despite its rapid growth.

Some users claim they have negative balances because of account takeover or were victims of scams that resulted in sending funds to crooks.

The dollar amounts in the emails from Venmo to consumers range from $7 to $3,000.

PayPal has updated its policies to allow collection from other PayPal accounts to drive consistency across its platforms.

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This means that Venmo can now seize funds from other accounts at PayPal, which may not be good news for users with negative balances.

PayPal did not return a request for comment, but the company told the Journal it made these changes to drive profitability on Venmo.

Venmo is growing quickly, with dollar volume passing $19 billion for the most recent quarter, an 80 percent increase.

However, the service is still not profitable, and PayPal has reported earnings dips due to Venmo-related fraud in the past.

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