This is follow up to discussions I started last week in “Random Questions” thread when contemplating set up of a new Venmo account for self. (I did that tonight, though I have not yet tied the account to my bank.)
Summary:
many CC families use and like Venmo, though other apps such as Zelle and Paypal popular too
exchanging funds via Venmo is free via a linked bank account, turnaround 1 to 3 days (or 1.5% fee for instant).
For credit card payment, 3% fee
there is a way to set up Venmo debit card
linking a bank account can be done with instant method (where you have to provide your bank id/password) or a method where you provide checking account routing info and Venmo does $1 deposits and withdrawals to initiate
Update your Venmo Privacy settings …. default is Public (all your Venmo contacts can see all your transactions)
Venmo is great. We’ve been using it since the relatively early days with our son, now friends, even a cash based healthcare provider or two. Like Google, Venmo has become a verb for many.
My D started using Venmo because her LLord wanted that method of payment. She says it is super easy to split checks and reimburse people via Venmo. I still haven’t opened an account yet—may think about it.
Be aware that there are no banking protections with Venmo. Lots of fraud and no recourse. ONLY use it with people you know.
My daughter bought some sports tickets using Venmo. She verified that the seller was real, saw a photo of the tickets, etc., and sent the money. Immediately it was clear it was a fraud (when seller sent a HAHAHA response). She was very lucky that she could contact venmo and cancel because the transaction was still in process, but even Venmo said there was nothing they could have done to help if she’d been even 5 minutes later in trying to stop the transaction. She won’t do that again.
If you venmo to the wrong account, it’s your problem.
Call me old fashioned (I am), but I want a bank behind my transactions. A group that I serve as treasure for has many members who want me to set up venmo to accept dues. No, I won’t do it (and the national organization doesn’t approve doing it). We have a paypal account and also a ‘square’ to take payments, but there are banks behind those payments. I will also take checks and cash (so retro of me).
My other daughter’s landlord won’t take venmo and she has to write a check for her rent. It can be done. I see venmo payments through her bank account all the time to places in NYC (not secure) and to friends. I think she’s crazy to pay that way. I tell her not to do it but she doesn’t listen to me.
I think this is key. I only use it with friends and family or rarely with someone I don’t know well, with an item in hand or a service completed. My son was also scammed on concert tickets. Never again though.
Absolutely agree - I only use Venmo with people I already know. People have offered to pay me via Venmo for Facebook Market items - I won’t accept it. Like twoinanddone explained, someone could pay you via Venmo, walk away with your item, then 10 seconds later cancel the transaction.
Also agree on making your settings private - in my Venmo ‘feed’ (similar to Instagram or FB feed) I get more information than I ever wanted about all my contacts who use it (who is helping their adult kids with rent, etc. !!).
We had a client, a terse guy from Brooklyn, who wanted to pay us by Venmo. I was not thrilled but set up an account. I told him to send the payment to “MaineLonghorn-86” (yes, that’s an alias). Shortly after, he asked me to confirm I received it. I hadn’t. I waited awhile. Still nothing. I asked if he was sure he had used the correct account name. Yes, he assured me. I was baffled.
The next day, he wrote back that his associate had sent the payment to our business phone number. What?!? It’s not even a cell phone number and had nothing to do with the account. He asked me to look into it. Sigh. I should have told him it was his problem, but I called Venmo and waited on hold forever. They told me the guy would have to call himself to resolve it. Eventually we got the money.
I declared that we wouldn’t use Venmo again, but recently we had another client who was late in paying us and wanted to use it. When I asked him to send us a check instead, he said that Venmo was more convenient, or I could drive 20 miles to his house to pick up a check. &#%*€!! He couldn’t walk to his mailbox?? And HE was late! Such gall. The customer is always right, though, so I reluctantly agreed and told him to triple check he used the right account. That transaction went fine.
I can assure you that this is a trend. Younger people don’t want to use checks.
That’s kind of what I thought. We want to use it with our kids and all of our banking institutions participate. Seemed like a better choice than Venmo. Plus, I think with Zelle, everyone can’t see all your transactions. That’s really weird!
That’s what I mainly use it for, topping off my college kid’s account when needed. It beats other methods of fund transfer with its near instantaneity.
Venmo is much more popular with kids. My S uses it all the time because his friends all use Venmo. They use Venmo to directly pay for a lot of things and to reimburse each other. He even got himself a Venmo credit card a couple of years ago (and I’m still not sure why he needs it).
Double check on Zelle - it’s been awhile since I had to use it for something but I think there were similar issues that if you don’t use the right email there are no protections. I have a friend who writes for the banking industry and she says not to use it but I don’t remember why, sorry! Things might have changed but I wouldn’t trust it more just because it’s tied to Wells Fargo, etc.
