Here's Why You Shouldn't Use Venmo (2024)

FAQs

Here's Why You Shouldn't Use Venmo? ›

If you transfer money to a stranger or get scammed by a client on Venmo, you most likely won't get refunded. For example, a client can send you a $100 deposit, but they can request that money back (even after their appointment). The P2P app you're using will likely refund them but not refund you the processing fees.

With its features, you can think of Venmo as a social media app and payment app in one. However, while it offers the best of both worlds, there's a chance it can also offer the worst. Social media apps are known for being privacy risks, and payment apps are often targets of cybercriminals, hackers, and scammers.

The main disadvantage for users is privacy issues. The thing is that Venmo automatically sets up public payments for new accounts. When you send money to someone, other users can see the attached message, your name, and the sender's name. The amount of the transaction is also not disclosed.

Venmo uses Plaid to verify your bank account information and, periodically, your bank account balance to check if you have enough funds to cover certain transactions.

Both of the payment services are decently safe, have user-friendly interfaces, and allow you to conveniently send money when you need it. Zelle stands out from Venmo with its absence of instant transfer fees, but it also cannot be used as a wallet. So, if you need a wallet function, you should go for Venmo .

Receiving a request for your Social Security Number (SSN) should make you suspicious. However, it's important to remember that Venmo (and other P2P payment platforms) are, in fact, legally required to ask for your SSN in accordance with certain government regulations.

But you should understand the risks of using the Venmo cash app so you can spot common scams and avoid any issues while using the app. Venmo uses encryption and other safety features to keep your personally identifiable information secure, but there are still risks to using the platform.

Linking bank accounts to Venmo is generally safe, but not without risks. You should implement extra security measures when linking bank accounts or credit cards to Venmo, such as setting up multi-factor authentication on both your Venmo app and your online bank accounts.

Venmo uses encryption to protect your account information. You can also work with Venmo to set up multi-factor authentication or create a PIN for your account. PayPal offers similar security protections as Venmo, but it also provides a more robust set of security features for businesses.

Why Venmo Is Popular. Like Facebook, Instagram, and WhatsApp, Venmo grew exponentially through peer-to-peer networking. Users are attracted to the following features: Unlike its competitors, Venmo doesn't charge users to send or receive more money, although credit card-based payments are charged.

Can everyone see my Venmo payments? ›

Your initial default privacy setting is Public, so everyone on the Internet can see your payments. You can change it for each transaction individually, or for all in Settings. If you and your friend use different privacy settings, we use the more restrictive one when you're paying each other.

Once you close Venmo account, any remaining balance will be forfeited, and you will not be able to access the funds. Can I Close My Venmo Account If I Have Pending Transactions? You cannot close your Venmo account with pending transactions or unresolved issues.

Whenever you receive a payment on Venmo, that money is put into your Venmo account. You'll need to initiate a bank transfer to send the funds to your bank account. You can send the money in your Venmo account to your bank using the Standard or Instant method.

Outside of the scenarios mentioned here, Venmo may NOT otherwise be used to receive business, commercial, or merchant transactions, meaning you CANNOT use Venmo to accept payment from (or send payment to) another user for a goods or services, unless explicitly authorized by Venmo.

Does Venmo have fraud protection? Venmo has a Purchase Protection Program that offers some protection when buying or selling from a business account or a personal account that qualifies. But if you transfer money to a stranger or get scammed on Venmo, you most likely won't get refunded.

Venmo uses encryption to protect your account information. You can also work with Venmo to set up multi-factor authentication or create a PIN for your account. PayPal offers similar security protections as Venmo, but it also provides a more robust set of security features for businesses.

When you receive payments for goods and services on our platform, the IRS requires Venmo to report that payment activity if you reach the reporting threshold for these transactions. You can find the latest info about the current tax year's reporting thresholds on the IRS website.

The fees assessed to payments received by business profiles allow Venmo to continue providing and improving the service. We are not able to refund these fees.

There may be fees associated with obtaining cash with your Venmo Debit Card if you use an ATM or Over the Counter Withdrawal. You may withdraw funds from your Venmo balance at an ATM that displays the Mastercard^®, PULSE^® or Cirrus^® acceptance marks. A $2.50 ATM Domestic Withdrawal Fee applies.