A Guide to Effective Venmo Use and Data Security

Using Venmo effectively requires some basic knowledge of how it works. Venmo is a peer-to-peer payment service owned by PayPal, allowing users to send and receive money.

To start using Venmo, you'll need to download the app and link a payment method, such as a debit card or bank account. This will give you access to your Venmo account and allow you to send and receive money.

Venmo transactions are generally free, but there may be fees for instant transfers to a debit card or bank account. These fees can range from 1.75% to 3% of the transfer amount, depending on the type of transfer you choose.

You might enjoy: What Is a Virtual Debit Card

Venmo has implemented some robust security measures to protect your account, including PIN- and fingerprint-based login options and two-factor authentication.

These safeguards can be particularly helpful if you lose or have your phone stolen, allowing you to quickly disallow access to your account by logging on to Venmo's website and changing your permission settings.

Take a look at this: What Brokerage Account Should I Use

Two-factor authentication is a must-have feature to ensure that only you can access your account, so be sure to sign up for it.

Venmo's parent company, PayPal, has faced issues in the past, including a 2018 settlement with the Federal Trade Commission over delayed access to funds and misleading users about privacy settings.

You can adjust your privacy settings on Venmo to control who sees your transactions, choosing between "private" (visible only to sender and recipient) or "friends" (visible to sender, recipients, and Venmo connections).

By setting up a unique PIN code and/or using Touch ID, you can add an extra layer of security to your Venmo account.

To send and receive money through Venmo, you need to set up a Venmo account, which can be done through the Android or iOS app.

You can use Venmo to send money to family and friends, and even request money from people, making it a convenient way to split shared expenses or reimburse each other for things like dinner out.

To make purchases online with Venmo, you can use the Venmo payment button, similar to PayPal's, which is available on certain merchants' websites.

Venmo payments are made on its highly rated Android and iOS smartphone apps, as well as via iMessage or with Siri voice command, making it easy to stay on top of your finances on the go.

You can fund your Venmo account with debit cards, checking accounts, credit cards, debit cards, or prepaid debit cards, but not with a savings account.

To receive funds via Venmo and cash them out, you need to link your Venmo account to a bank account, which is required for making cash withdrawals.

Take a look at this: Pay Pal Debit

Venmo charges a 3% fee for peer-to-peer payments funded by credit card. This fee is waived for payments funded by bank account, debit card, or prepaid debit card.

The instant transfer fee is 1.75% per transaction, with a 25-cent minimum and $25 maximum. This fee is charged when you cash out a Venmo balance to a debit card.

You might enjoy: Venmo Debit Card Fees

You can avoid fees altogether by using a bank account, debit card, or prepaid debit card to fund your Venmo payments. Purchases from merchants with a Venmo payment option are also free, even with a credit card.

If you do use a credit card, be aware that your credit card company may charge cash advance fees, typically 5% of the advance amount or $10, whichever is more. This depends on your card issuer.

Venmo's instant transfer fee is charged when you cash out a Venmo balance to a debit card, but there's no fee for standard "cash-out" transfers to a bank account. These transfers take one to three business days to process.

You might enjoy: Apple Cash Virtual Card

To get money from Venmo, you need to open a Venmo account. From there, you can accept payments from other people.

Once your Venmo balance is set up, any money you receive from another person can usually be accessed in a short amount of time, typically a few hours to a few days. However, it may take several days to receive money if a recipient has just opened a Venmo account for the first time.

You can transfer money from your Venmo account to your bank account instantly if you're willing to pay a 1.75 percent fee, with a minimum of $0.25 and a maximum of $25.

Standard bank transfers are free, but they take one to three business days to process.

Expand your knowledge: Venmo for Dummies

To fund your Venmo account, you can link a debit card, credit card, or bank account. Savings accounts have traditionally had limits on online withdrawals or transfers, but some banks have lifted these restrictions.

You can link a checking account to Venmo, but not a savings account. If you receive money on Venmo, you'll need to link a bank account to transfer it out.

The app shows your balance, which can fund future payments or be cashed out to your bank account. However, money in your Venmo account isn't federally insured, so you could lose it if Venmo goes out of business.

Venmo offers both debit and credit cards. The Venmo Mastercard Debit Card lets you use your Venmo balance anywhere Mastercard is accepted.

The Venmo Mastercard Debit Card has limits on purchases, ATM withdrawals, and transactions. Here are the limits:

The Venmo Credit Card offers a unique 3-2-1 cash back structure, with 3% back in your top spend category, 2% back in your second-highest spending category, and 1% back on all other purchases.

You can fund your Venmo account with a debit card, a credit card, or a bank account. To send money on Venmo, you need to link the app to a U.S. bank account, debit card, prepaid debit card, or credit card.

Link a checking account, not a savings account, to Venmo for optimal use. Savings accounts have a limit of six online withdrawals or transfers per month, although some banks have lifted this restriction since 2020.

You can't fund your Venmo account with a savings account, as this will limit your online withdrawals or transfers. The app shows your balance, which can fund your future payments if there's enough money.

Venmo stores your money as an in-app balance, which can be cashed out to your bank account. However, this money isn't federally insured, so you could lose it in the event of Venmo going out of business.

Money in a Venmo account also doesn't earn interest, so it's not a good idea to keep a large balance in the app.

On a similar theme: How to Use Venmo Balance Instead of Card

The Venmo Mastercard Debit Card offers a convenient way to use your Venmo balance anywhere Mastercard is accepted.

You can link your Venmo account to a debit card, and use your debit card to make purchases or withdraw cash from an ATM.

The card has several limits, including a $2,999.99 per purchase limit, a $3,000.00 daily purchase limit, a $7,000.00 combined weekly purchase limit, and a $1,000 daily limit for ATM withdrawals, over the counter withdrawals, and cash back with purchase transactions.

There's also a 30 transactions per day limit.

Using an out-of-network ATM may result in a $2.50 domestic ATM withdrawal fee.

However, you can use the MoneyPass ATM network to get cash out without incurring this additional charge.

Here are the key limits of the Venmo Mastercard Debit Card:

Venmo transactions can be public, but they don't have to be. You have control over your privacy settings, which is a great thing.

Venmo has three different privacy settings: Public, Friends only, and Private. These settings allow you to choose who sees your transactions.

Here are Venmo's privacy settings in a nutshell:

You can send up to $60,000 per week on Venmo once you're verified.

To get started, the initial transfer maximum per week is $299.99 until you verify more of your identity.

Verifying your identity involves submitting your Social Security number, ZIP code, and birthdate.

This process allows you to send larger amounts, including multiple transactions up to $60,000 per week.

The maximum you can transfer from Venmo to a bank account starts at $999.99 per transaction.

However, once you're verified, this limit increases to $19,999 per week.

Venmo transactions can be public, but they don't have to be. You have control over your privacy settings.

You can choose from three different options: Public, Friends only, or Private. This means you can decide who sees your transactions.

Here are Venmo's privacy settings:

This is great news if you're concerned about your transactions being public. You can choose the setting that makes you feel most comfortable.