Apps that help easily transfer money between people are now a common thing for people to have on their phones. Even just five to ten years ago, that may not have been the case, but now people transfer cash instead of handing it over in person. It’s easier, faster and fits with how people live without cash on hand now.
In order to fully grasp the advantages of money transferring technology, you have to understand it. Venmo is one of the most popular money transfer apps that people use. It has a slick interface, it’s easy to figure out and everyone already has it. Beyond sending and receiving money, there’s much more to know about how Venmo works.
Read on for everything you need to know about Vemo’s limits and fees. You’ll be able to use the app better in the future and keep yourself out of any unnecessary sticky situations.
There is a Weekly Limit
If Venmo is your first money transfer app that you’ll be trying, you might be thinking of it in the same way as just handing over cash to loan to a friend. As easy as it is, it’s also not that simple. Any company has to have rules to function, and Venmo is no different.
The first limitation you’ll find as a user is that there’s a weekly limit. After you sign up for the app, it’ll ask for identity verification. This isn’t required to continue to use the app, but it’s preferred. If you don’t verify your identity, you’ll have a $299.99 weekly limit for all transactions.
To get past this, you can verify your identity by adding personal information to your account, like your zip code, birth date and the last four digits of your social security number.
After you’ve been identified, you’ll have a weekly limit of $4,999.99. This includes sending and receiving funds and paying for goods or services. The only way to have more of a spending limit would be to activate a Venmo Mastercard for yourself, which allows up to $3,000 per purchase.
The Limit Can’t Be Extended
After you start using the app, if you find that the weekly limit isn’t high enough for you, you may need to consider switching services. While there are plenty of apps that make life more convenient, Venmo can’t always do that.
They don’t accept requests to increase limits, as they have set company policies regarding their rolling limits. This will be true for any money transferring service, although the specific limits may be different.
There Are Credit Card and Bank Fees
One of the reasons people use Venmo is because you don’t need to have a Venmo balance in order to send money or make a purchase. It links with your debit card or bank account, so it pulls the money from there instantaneously. You won’t have to worry about managing a separate Venmo account to use the app.
There is an option for users to link their credit cards to their Venmo account, but there’s a fee that goes along with that. Linking it up is free, but if you make transfer money with it, you’ll be charged a three percent fee. On the flip side of the credit card fee coin, there is no fee for sending money with your debit card.
One other fee to be aware of is in regard to your bank account. If you need to make an instant transfer to your bank account, you’ll have to pay a one percent fee. This was recently raised from a 25 cent fee, but Venmo is not known to raise fees on a regular basis.
Time is Also a Limit
Just as banks have times where they close and open, Venmo does too. You can use the app at any time, but any money withdrawn to your bank account will typically take one day to show. That only works if you initiate your transfer by 7 p.m. EST. Otherwise, the transfer will wait until the following morning at 7 a.m. to process, adding on an extra day.
The increase of daily use of technology is being studied by experts so the implications can become more clear, but as far as money transfer apps go, the benefits of using Venmo far outweigh the fees and limits.
For the average consumer, the limits won’t pose an issue and the fees are nowhere near outrageous. This is a good app to start with if you’re new to the money transferring world and need a safe spot to begin.