Venmo PayPal: A Comprehensive Guide to Sending and Receiving Money

Venmo and PayPal have partnered to make sending and receiving money easier and more convenient. This means you can use your PayPal account to send and receive money on Venmo.

To send money on Venmo using PayPal, you'll need to link your PayPal account to your Venmo account. This is a straightforward process that can be completed in just a few minutes.

Venmo and PayPal's integration allows you to use your PayPal balance or bank account to fund your Venmo transactions. This means you can avoid using your debit or credit card to send money on Venmo.

Venmo and PayPal are two popular digital payment services that have revolutionized the way we send and receive money. PayPal was founded in 1998 to help consumers make purchases online.

Venmo, on the other hand, started in 2009 as a service for individuals to quickly send and receive payments. It was later acquired by PayPal in 2013.

You can use Venmo on any device with internet access, including Android, iOS, and desktop computers. The same goes for PayPal. Both services allow you to link a debit or credit card, bank account, or your Venmo/PayPal balance to make payments.

Venmo has a weekly spend limit of $7,000 across multiple transactions, with person-to-person transfers capped at $60,000 weekly. PayPal, however, has no limits in a given time frame, but you can only transfer up to $60,000 per transaction.

Venmo charges a 3% fee for sending payments with a credit card, while PayPal charges 2.9% for debit or credit card transactions. International money transfers also incur additional fees with PayPal.

Here's a quick comparison of Venmo and PayPal's features:

Venmo is only available in the U.S.A., while PayPal is available in over 200 countries and 25 currencies.

To create an account with Venmo or PayPal, you'll need to download the app on your iOS or Android device. You can sign up for Venmo by creating a unique username and password, and providing a phone number and email address.

You'll also need to link a bank account, credit card, or debit card to Venmo, which you can do by providing the necessary information. This process is similar for PayPal, which also requires a unique username and password, phone number, and email address.

Both services allow you to make touchless QR code purchases from participating retailers.

Sending money with Venmo and PayPal is a breeze. You can search for your friend's Venmo account or scan their QR code and send a payment. If your Venmo account isn't verified, you're limited to sending up to $299.99 to another person, but you can send a total of $60,000 a week once your account is verified.

Both Venmo and PayPal allow you to sync your contacts to the app, making it easy to find and send money to your friends and family. If the app doesn't surface the contact you're looking for, you can still send money using their username, email address, or mobile number.

Once you've chosen the recipient and amount, both PayPal and Venmo will ask you what payment method you'd like to use. If you have a positive balance with either service, you can use those funds for your payment. Otherwise, funds will be drawn from the bank account, debit card, or credit card you identify as your desired payment method for this transaction.

The amount will hit the user's PayPal or Venmo balance within a couple of minutes, often even seconds. However, if you send money to the wrong person, the companies won't refund your money, so be sure to double-check the recipient's information.

Here are the transaction limits for sending money with Venmo and PayPal:

The process of sending money is similar across both apps, making it easy to use either service.

Transaction fees on Venmo and PayPal are similar, with both services offering free payments from linked bank accounts. Venmo extends this no-fee option to payments made from debit cards, while PayPal only allows free payments directly from a bank account.

For payments made from credit cards, both services charge around 3% in fees. However, American Express offers free payments through both PayPal and Venmo if initiated through their app.

Here's a comparison of the transaction fees for Venmo and PayPal:

In terms of limits, PayPal offers a significant advantage for large transfers, with a single payment limit of $10,000 and a total cap of $60,000. Venmo, on the other hand, has a limit of $6,999.99 per seven-day rolling period, with a maximum transaction amount of $299.99 until identity verification is completed.

Fees play a significant role in choosing between Venmo and PayPal. Both services offer free payments from linked bank accounts, but the fees for debit and credit card payments differ slightly.

Venmo charges a 3% fee for sending money from a credit card, while PayPal charges 2.9% for debit and credit card payments, plus a fixed fee for certain currencies if applicable. This difference might seem small, but it can add up over time.

For debit card payments, Venmo offers a no-fee option, whereas PayPal charges a fee. It's essential to consider these fees when deciding which service to use for your transactions.

Venmo and PayPal also charge fees for ATM domestic withdrawals, with both services charging $2.50 for debit card withdrawals and $3 for over-the-counter withdrawals at financial institutions.

Here's a quick comparison of fees for Venmo and PayPal:

It's worth noting that both services offer free instant transfers to linked bank accounts, but with a 1.75% fee for Venmo and no fee for standard transfers (1-3 business days).

PayPal offers significantly higher limits for large transfers, allowing single payments up to $10,000 each, with a total cap of $60,000.

Venmo's limits are much lower, capping single payments at $6,999.99 per seven-day rolling period.

To access higher limits on Venmo, you'll need to complete an identity verification step.

Until then, the maximum transaction amount on Venmo is capped at $299.99.

Venmo allows online sellers to create a business profile, but it's geared more towards person-to-person interactions. Sellers are charged a 1.9% fee for each transaction exceeding $1.

PayPal, on the other hand, has a much more sophisticated Commerce Platform with a fraud protection system covering both buyers and sellers. This platform integrates with point-of-sale and invoicing systems, subscription services, and all major financial management systems used by businesses.

Anyone can set up a PayPal business account for free, but will be charged 1.9% to 3.5% for each sale depending on the type of transaction.

The Split Purchase Feature is a game-changer for sharing expenses with friends and family. It's easy to use and can be accessed directly within the American Express App.

To get started, tap on any pending or posted charge within your current or most recent billing cycle and select Split It. This will allow you to divide the total purchase amount evenly among up to 20 contacts.

You can choose contacts from your device or enter them manually, and then adjust the total split amount or customize any of the individual request amounts. The contacts you select will receive a request notification via Venmo or PayPal.

You'll have the option to get paid back directly to your Card Account as a statement credit or to your linked Venmo or PayPal account. If you choose the latter, the contacts will notify you when you're paid back.

It's worth noting that you're still responsible for the full purchase amount charged to your Card and will keep any rewards you earn for the purchase that you split.

Both Venmo and PayPal have free apps for iOS and Android, making it easy to access their services on the go. You can also use their browser-based desktop versions if you prefer.

Venmo payments can only be initiated with the mobile app, whereas PayPal payments can be made through the app or the website. This gives PayPal a bit more flexibility.

PayPal has a wide reach, allowing users to make payments with a variety of online merchants and even for QR code purchases in-store. This is a big advantage for PayPal users, especially those who shop online frequently.

For businesses, Venmo and PayPal offer distinct features to help you manage transactions and grow your operations.

Venmo allows online sellers to create a business profile, but its business model is geared more towards person-to-person interactions. Sellers are charged a 1.9% fee for each transaction exceeding $1.

PayPal, on the other hand, has a more sophisticated Commerce Platform with a fraud protection system covering both buyers and sellers. It integrates with point-of-sale and invoicing systems, subscription services, and all major financial management systems used by businesses.

To set up a PayPal business account, anyone can do so for free, but will be charged 1.9% to 3.5% for each sale depending on the type of transaction.

PayPal offers a plethora of small business tools that are entirely absent in Venmo's more person-to-person focused business model. These tools include help with invoicing, product shipping, and marketing insights.

Some services are included in the basic business package, while others are available to those with a PayPal Payments Pro account, which carries a monthly maintenance fee.

PayPal also provides working capital and business loans to growing businesses looking to scale.

Here's a comparison of the fees for Venmo and PayPal:

Keep in mind that these fees are subject to change, so it's essential to review the terms and conditions before making a decision.

Venmo and PayPal have their own strengths and weaknesses. Let's dive into the pros and cons of each.

Venmo is great for making instant payments to individuals or businesses without using cash or checks. It also maintains a Venmo Balance account from which payments can go out.

One of the best things about Venmo is that it's free to transfer money from your Venmo Balance to your linked bank account in 1-3 days. You can also link your bank account, debit card, or credit card to your Venmo account.

However, Venmo isn't supported for purchases outside the United States, and it's not as widely accepted at businesses as credit cards, cash, or checks. Additionally, there's a 1.75% fee for instant transfer from Venmo Balance to your bank account.

Here are some key differences between Venmo and PayPal:

PayPal, on the other hand, supports transactions in more than 200 countries and 25 currencies. It's also great for making instant payments to individuals and businesses without using cash, checks, or credit cards.

However, PayPal has a higher transaction limit of $60,000 per purchase, and it encrypts your banking and credit card information to keep it safe when making purchases online. But, it can be more complex to use than Venmo, and sellers pay a fee on all business transactions.

Both Venmo and PayPal apps receive similarly favorable customer reviews, with reviewers praising their ease of use and design.

Their user-friendly interfaces make it easy to make payments and requests with just a few clicks. Reviewers appreciate the simplicity of both apps, which is a major advantage in today's fast-paced digital world.

Is There an Integration Between Popular Payment Services?

There isn't an integration between Venmo and PayPal. This means that Venmo payments are handled as regular PayPal transactions.

PayPal and Venmo don't share a direct connection, so users can't transfer funds between the two services without going through a regular PayPal transaction.

Reviews of both Venmo and PayPal are overwhelmingly positive. Reviewers praise their ease of use, which is a major selling point for many users.

Their design is also a highlight, making it easy to navigate and find what you need. Both apps have a user-friendly interface that gets the job done.

Reviewers cite their ability to make payments and requests with just a few easy clicks as a major advantage. This feature is a game-changer for anyone who needs to send or receive money quickly.

Cross-currency transfers can be a costly mistake, with PayPal charging a 5% exchange rate fee on international payments. This can add up quickly, especially if you're not aware of the additional 4% markup.

Be careful when converting currencies, as the process can be complex and difficult to navigate. You'll need to be extra attentive to ensure you're getting the best exchange rate.

If you're in a time crunch, consider using a service like Wise for a cheaper and more straightforward experience.

If you send money to the wrong person, it's gone for good - Venmo and PayPal won't refund your money. You should only send to friends and family that you know and trust.

When transferring money from Venmo to PayPal, be aware that cross-currency transfers can become expensive. If you plan on making a currency exchange, you'll have to pay a 5% exchange rate fee, plus an additional 4% markup.

Make sure to link a bank account to both your PayPal and Venmo accounts before transferring money, as this will allow you to transfer funds between the two platforms. This process involves setting up a bank account and linking it to both PayPal and Venmo.

Transferring money from Venmo to PayPal can take up to 3-5 business days, so plan accordingly. You can choose to transfer funds instantly, but this may come with a fee.

Here are the steps to transfer money from Venmo to PayPal:

Removing funds from PayPal can be a bit tricky, but it's essential to understand the process to avoid any issues.

PayPal can hold funds for various reasons, including account verification, transactions, or even a security hold. This can be frustrating, especially if you need access to those funds.

To remove a hold on your funds, you'll need to resolve the issue causing the hold. This might involve verifying your account, disputing a transaction, or providing additional information to PayPal's security team.

If you're having trouble with a hold on your funds, it's best to contact PayPal's customer support directly for assistance.

In some cases, PayPal's fees can be a concern, especially if you're not aware of them. Be sure to check your account regularly to ensure you're not being charged unnecessary fees.

Here are some common PayPal fees to be aware of:

By understanding these fees and taking steps to minimize them, you can avoid any surprises when using PayPal.