The digital world offers great advantages for users around the world: without a doubt, it is a point of union between users who are at opposite poles of the globe or in the same country, and it is especially useful for carrying out operations that, otherwise, they could not materialize. In the case of electronic transfers, mobile applications are here to stay and open up new possibilities; perhaps one of the ones that have gained the most ground in recent years has been Venmo.
But what is Venmo and how does it work? On this occasion, we present some things you should know about this "Cash App" and why you should take it into account for future money transfers.
WHAT IS VENMO?
First, it is important to identify what this service is about, what are its components, and the advantages that its use offers.
Venmo is one of the most popular “Cash apps”, but it is much more than that; It is a mobile payment service that is based in the United States.
With this app, users who live anywhere in the United States can send and receive money from anyone who has an account on the app.
Since 2009, when it was launched, Venmo began to gain popularity, especially among young people.
This is because the application innovated in the design of a transfer system that would be practical and useful for sending and receiving money, as well as for making payments, dividing accounts into different establishments and services (for example, renting a house or the account of a restaurant could be divided evenly between users of the application).
Who owns Venmo?
Although the app has made a name for itself in the United States, the app was created by a company called Venmo, LLC, which is currently a subsidiary of PayPal in the United States.
This was founded by Andrew Kortina and Iqram Magdon-Ismail, two businessmen who met when they were students at the University of Pennsylvania; after its launch, the two partners' brainchild was purchased by Braintree, and Braintree, in turn, acquired by PayPal.
HOW MUCH DOES VENMO CHARGE TO SEND MONEY?
Currently, Venmo does not charge a fee for basic services like sending, receiving, and withdrawing money.
Venmo also does not charge monthly or annual usage fees for basic services, although it does have the option of accessing premium features by paying a special fee.
To access the free features, the user must have a debit card or bank account linked to the application
Instant transfer fees
Transfers received within Venmo can be cashed out instantly or within one to three days.
The second option is free; however, if the user decides to immediately charge the transfer made to his account, he must pay a fee of 1%, with a minimum payment of 0.25 cents and a maximum payment of $10 dollars.
Credit card processing fees
If a user decides to make a money transfer using their credit card, then Venmo will proceed to charge a fee of 3% of the transfer.
Merchant fees
It will be in April 2021 when Venmo starts charging its new fees for merchants. As of that month, companies affiliated with Venmo (which currently can only access this service by invitation), will be subject to an additional charge, prior to any transaction, of 1.9% plus 0.10 cents for each payment made through the business profile.
WHY USE VENMO?
Generally speaking, using Venmo is a convenient way to make and receive payments. Since its creation in 2009, until today, the application has been one of the most popular, since it allows money transfers without generating an extra commission, in most cases.
Today, the health contingency that exists within the North American territory has favored the use of this type of application, not only to make payments but also to make donations, make purchases and withdraw money at ATMs.
HOW DOES VENMO WORK?
The first step that users must take after downloading the application is to register and link a bank account and a credit or debit card or both. If transactions are made with the first two, sending money will be free of commission, while movements made with a credit card are subject to a 3% fee.
Send or request a Venmo payment
To make a payment via Venmo, the user must follow the following steps:
Open the app
Choose the 'payment' icon in the upper right corner of the screen
Select the recipient, who should be found in the user's contact list
Add a payment note (it can be a text or an emoji)
Click 'pay' to finalize the transaction
To receive a payment within Venmo, these are the steps to follow:
Open the app
Click on the icon containing three lines located in the upper left corner of the screen
Select the option 'payment methods and click on it to add the data of the user's bank account
Select the option 'add to bank or card' and then select the option 'bank'
Add bank account details
IS VENMO SAFE?
Venmo is considered a highly secure app. This is because, initially, the app advises adding only people close to the user to the contact list.
In addition, the application's configuration allows security measures to be implemented so that the user can be sure that no one else will be able to access their account.
A basic piece of advice is to configure the application so that each and every one of the transactions are carried out privately and no one else has visual access to the movements made by the user.
Venmo risks
Because money transfers take between 24 and 72 hours to be reflected, there have been cases of payment scams via Venmo, as some users have reported that they have received payments only to later notice that the funds of the person who made the transfer are insufficient.
There have also been reports of scams in which some people receive a message in which a person claims to have deposited a significant amount in the user's account, in order for the user to "return" the money with their own funds.
Built-in security features and steps you can take
It is possible to configure the application to implement more efficient security measures within Venmo, among which are:
The user block
The ability to add and remove contacts
Add a PIN number and Touch ID to access the account
Some advice that experts give to protect a Venmo account is:
Choose a unique password
enable a PIN
Link only credit cards (not debit)
Make transfers and receive payments only from people you know
Avoid using public Wi-Fi networks
Sign out at the end of a transaction
HOW CAN I DEPOSIT FUNDS INTO MY VENMO ACCOUNT?
The steps to add money to Venmo are:
Click on the icon where the three lines meet
Select the 'manage account' option
Select the option 'add money
Enter the amount of money you want to deposit into the account
Confirm the bank account from which you want to transfer the money
Click on 'add money