Send Money Instantly For Free
Venmo is a personal cash transfer service owned by Braintree Payments and PayPal. Launched in June 2012, the service enables users to make direct bank (ACH) transfers or card payments to one another using a mobile phone app. Bank and debit transfers are free through Venmo, but the service charges a per-transaction fee on credit card payments. Additionally, as of 2021, Venmo has added a feature that allows a buyer to flag a purchase as “goods and services,” which will allow the buyer to enroll in a purchase protection plan and which adds a charge of 1.9% to the seller’s end of the transaction. Venmo is similar in many ways to Square Cash or PayPal, but its easy-to-use app and free transfer service make it one of the best mobile apps for sending money to people. Venmo has also recently launched a feature that enables businesses to accept payment from Venmo users within those businesses’ mobile apps, and users can now pay with Venmo in places that have a PayPal button.
Additionally, it became news in 2022 that Venmo (along with other online payment processors) must report transactions to the IRS if someone sends over $600 a year. This may heavily affect those using Venmo for business.
Is Venmo Holding Your Funds Right Now?
Thousands of users have had their payments frozen by Venmo. If you’re one of them, then you might find these resources helpful:
- How To Make Your Payment Processor Release Your Money
- Best Mobile Apps for Sending Money
- Best Mobile Credit Card Processing Apps
Venmo Payment Processing
The process for sending funds through Venmo is simple. First, the user opens the app using either a biometric scan or PIN and enters the username, phone number, email address, or Twitter handle of the person they wish to pay or charge. The user then specifies the type of transaction via a Pay/Request button. Then, the user enters the amount to be paid or charged and provides a brief note describing the transfer (similar to the “Memo” line on a paper check). After the user initiates the payment, the money is sent, and confirmation is sent via email to both parties. As with its parent company PayPal, Venmo users will need to manually transfer the Venmo funds from the app to their personal bank accounts in order to withdraw them as cash.
Venmo is available for iPhone and Android, and the service may also be accessed through the company’s website.
Venmo Location and Ownership
Andrew Kortina and Iqram Magdon-Ismail are listed as the co-founders of Venmo, whose headquarters are located at 159 W 25th St, Fl 9 New York City, NY 10001 while other sources list it at 95 Morton St, Fl 5, New York City, New York, 10014. It also lists 2211 N 1st St, San Jose, CA 95131 as a headquarter location on its Better Business Bureau profile, though this appears to be a PayPal office. Dan Schulman is the president of Venmo.
Many merchants find themselves debating between Venmo and PayPal for their payment service needs. We welcome our readers to check out the PayPal vs Venmo section of our PayPal review.
Venmo Review Table of Contents
- Costs & Contract: Venmo offers free peer-to-peer bank transfers, but it charges flat per-transaction fees for credit card payments and business payments.
- Complaints & Service: Venmo has received more than 1,000 public complaints.
- BBB Rating: Venmo has an “A” rating and has received 2,768 complaints and 351 reviews in the past 3 years. The company has been accredited by the Better Business Bureau since 2016.
- Sales & Marketing: Venmo fully discloses its very simple pricing model on its website.