How to Use Venmo: Here’s Everything You Need to Know
February 7, 2020
In today’s world, technology has revolutionized the way we make payments. In the past, we relied on cash and checks, but now, we have a plethora of digital payment options available at our fingertips. One of the most popular payment apps is Venmo. Venmo has quickly become a household name, making it easy for friends, family, and businesses to make instant payments with just a few taps. This app has simplified the process of splitting bills, sending money to friends, and even making rent payments. However, understanding how to use Venmo can be a challenge.
In this comprehensive guide, I will walk you through everything you need to know about using Venmo, from setting up your account, to sending and receiving payments, to keeping your information secure. With this guide, you’ll be able to master Venmo and make easy payments in no time.
1. Introduction to Venmo and how it works
Venmo is a digital payment service that allows you to easily send and receive payments from friends, family, and even businesses. It was founded in 2009 and is now owned by PayPal. Venmo is popular among millennials and Gen Z, but it’s becoming more widely used by people of all ages as it provides a quick and easy way to transfer money.
Venmo works by linking your bank account, credit or debit card to your Venmo account. Once set up, you can use Venmo to pay for things like rent, utility bills, groceries, and more. You can also use it to split the cost of things like dinners, concert tickets, or vacations with your friends.
Sending money through Venmo is easy. You simply enter the amount you want to send, the recipient’s username, and a brief description of the payment. Venmo also allows you to add emojis and even customize the payment with a specific theme, making it a fun and personal experience.
One of the unique features of Venmo is the social feed that allows you to see your friends’ transactions. This can be great for keeping up with what’s going on with your friends and can also be helpful in keeping track of shared expenses.
Overall, Venmo is a convenient and easy-to-use payment service that is becoming more and more popular. In the following sections, we’ll dive deeper into how to set up your account, how to send and receive payments, and some tips and tricks to get the most out of Venmo.
2. Setting up your Venmo account and linking it to your bank account
Before you can start using Venmo, you’ll need to set up an account. The good news is that it’s a straightforward process that only takes a few minutes.
First things first, download the Venmo app on your smartphone and sign up for an account. You can use your email address or phone number to sign up. Once you’ve signed up, you’ll need to verify your email or phone number by entering the code that Venmo sends you.
Next, you’ll need to link your bank account to your Venmo account. This is important because it’s how you’ll add and withdraw funds to and from your Venmo account. To link your bank account, go to the “☰” menu and select “Settings” and then “Payment Methods”. From there, select “Add a bank or card” and follow the prompts to link your bank account.
After you’ve linked your bank account, you’re ready to start sending and receiving payments using Venmo! It’s important to note that Venmo is only available in the United States and you must be 18 years or older to use it. Additionally, Venmo charges a 3% fee for credit card transactions, so it’s recommended to link your bank account instead for free transactions.
3. How to send money to friends and family
Sending money to friends and family has never been easier with Venmo. To start, first, open the Venmo app on your mobile device and log in to your account. Once you’re logged in, click on the “Pay or Request” button located at the bottom of your screen.
Next, enter the name, username, phone number, or email address of the person you want to send money to. You’ll have the option to choose whether you’re sending money to a friend or for goods and services.
After that, specify the amount of money you want to send and add a note if you want to. You can also choose whether you want the payment to be public or private. Public payments will be visible to anyone who searches for your account on Venmo, whereas private payments will only be visible to you and the recipient.
Finally, click on the “Pay” button to complete the transaction. The money will be deducted from your Venmo balance or the connected bank account or debit card, depending on the funding source you selected.
It’s important to note that Venmo charges a 3% fee for transactions made using a credit card. However, there are no fees for transactions made using your Venmo balance, bank account, or debit card.
4. How to request money from friends and family
Venmo has made it incredibly easy to request money from friends and family. If you need some funds from a friend who owes you money, or if you need to split a bill, Venmo’s got you covered.
To request money, simply open the app and tap the “Request” button at the bottom of the screen. From there, enter the amount you’re requesting and what it’s for (optional). You can also select who you want to request the money from by typing in their username, phone number, or email address.
If you need to request money from multiple people for a group expense, Venmo allows you to select multiple people to request money from at once. This makes it easy to split expenses like dinner bills or vacation expenses.
Once you’ve entered all the necessary information, simply tap “Request” and your request will be sent to the selected individuals. They’ll receive a notification that they owe you money and can pay you back with just a few taps.
Venmo also allows you to send reminders if your friends haven’t paid you back yet. Simply tap on the transaction in question and select “Remind” to send a friendly nudge to your friend.
Overall, requesting money with Venmo is a quick and easy process that can save you the hassle of trying to collect money from friends and family.
5. Tips for using Venmo to split bills and expenses
Venmo has made splitting bills and expenses easier than ever before. Here are a few tips to make the process even smoother:
1. Always request money instead of sending it: This ensures that you get paid back for the exact amount owed, rather than having to chase down your friends for the remaining balance.
2. Use the notes section: When requesting money, be sure to include a note with details about what the payment is for. This will help everyone keep track of who paid for what.
3. Divide expenses equally: If you’re splitting a bill with multiple people, divide the total evenly and request payment for the appropriate portion. This avoids any confusion or awkwardness about who owes what.
4. Set reminders: If someone forgets to pay you back, Venmo allows you to send a reminder. Use this feature to gently nudge your friends without having to ask them directly.
5. Keep track of expenses: Venmo keeps a record of all your transactions, making it easy to keep track of who has paid you back and who still owes you money. Use this feature to stay organized and avoid any confusion.
By following these simple tips, you’ll be able to use Venmo to split bills and expenses with ease. Whether you’re out to dinner with friends or splitting rent with roommates, Venmo makes it easy to keep track of who owes what and ensure that everyone gets paid back on time.
6. How to pay merchants with Venmo
Venmo is not only a great way to pay friends and family members, but it is also a secure and easy way to pay merchants. Paying merchants is easy, but it requires a slightly different process than paying friends and family members.
First, you’ll need to ensure that the merchant accepts Venmo payments. Many merchants now accept Venmo as a payment method, so it’s worth checking with them before making a purchase.
Once you’ve confirmed that the merchant accepts Venmo, you’ll need to add the merchant to your Venmo account. This is done by searching for the merchant’s name in the “Search Merchants” section of the app.
Once you’ve found the merchant, you can add them to your Venmo account and make a payment. To make a payment, simply enter the amount you wish to pay and add a note describing the payment. You can also add emojis to your payment notes to make them more personalized.
It’s important to note that some merchants may charge a fee for using Venmo as a payment method, so it’s always worth checking the terms and conditions before making a payment.
However, overall, paying merchants with Venmo is a quick and easy way to make payments for goods and services.
7. How to transfer money from Venmo to your bank account
One of the best things about Venmo is the simplicity of transferring money from your account to your bank account. Here’s how to do it.
First, open the Venmo app and make sure you are logged in. Then, tap the three horizontal lines in the top left corner of the screen. This will open a menu where you can select “Transfer to Bank.”
Next, select the bank account you want to transfer the money to. If you haven’t already added a bank account, you will need to do so before you can transfer money.
After selecting your bank account, enter the amount you want to transfer. Venmo will show you the estimated arrival date for the transfer.
Finally, tap “Transfer” to initiate the transfer. You will receive a confirmation message once the transfer has been completed.
It’s important to note that Venmo may charge a fee for instant transfers, which allow you to transfer money to your bank account immediately instead of waiting one to three business days for the transfer to be completed. This fee is typically 1% of the transfer amount with a minimum fee of $0.25 and a maximum fee of $10.
Overall, transferring money from Venmo to your bank account is quick and easy, making it a great option for anyone looking for a reliable payment app.
8. Venmo’s security measures and how to protect your account
Venmo has become a popular way for people to transfer money to each other, but with that comes some security risks. Venmo has put in place several security measures to protect its users, but there are also steps you can take to protect your account.
First, Venmo uses encryption to protect your data and transactions. This means that any information you send through Venmo is scrambled and can only be deciphered by the intended recipient. Additionally, Venmo allows you to set up a PIN code or fingerprint recognition to further protect your account.
It’s also important to be cautious about who you send money to and how much you send. Venmo transactions are instant and irreversible, so if you accidentally send money to the wrong person or fall for a scam, you may not be able to get your money back. Always double-check the recipient’s username before sending money, and if you’re unsure, contact the person directly to confirm their identity.
Finally, be wary of phishing scams. Phishing scams are attempts to steal your personal information by posing as a legitimate company or organization. Venmo will never ask you to provide sensitive information via email or text message, so if you receive a message asking for this information, it’s likely a scam. Always log in to your Venmo account directly through the Venmo app or website to ensure you’re accessing the real site.
By taking these steps and being cautious with your transactions, you can protect your Venmo account and ensure your payments are safe and secure.
9. Alternatives to Venmo and how they compare
While Venmo is a popular choice for easy payments, there are several other alternatives available in the market that you may want to consider. Each alternative has its own unique features, advantages, and disadvantages.
One alternative that is gaining popularity is Square Cash. Square Cash is a mobile payment app that allows users to send and receive money quickly and easily. It works just like Venmo and is also free to use. However, one key advantage of Square Cash is that it allows users to send and receive money directly to and from their debit cards. This means that you can use the money you receive instantly without having to transfer it to your bank account first.
Another alternative is Google Wallet. Google Wallet allows you to send and receive money via your Gmail account, making it an easy and convenient option for those who use Gmail frequently. It’s also free to use and allows users to send money directly to their bank accounts.
PayPal is another popular alternative to Venmo. While it is not as fast as Venmo or Square Cash, PayPal is widely accepted and can be used for both personal and business transactions. It also offers buyer protection, making it a safer option for online transactions.
Overall, when choosing an alternative to Venmo, it’s important to consider your specific needs and preferences. While Venmo may be the most popular option, it’s not necessarily the best option for everyone. Take some time to research and compare different options and choose the one that works best for you.