Over 40 million people have a Venmo account. And, while it used to be one of the most popular and widely-used payment transfer apps, they now offer other banking products such as a Venmo card and will be launching a Venmo credit card later this year.
This popular app, which is owned by PayPal, allows you to easily transfer money to friends. You can split a lunch bill, pay for your half of a cab, pay your roommate for rent, or even use it as a payment method in authorized partner apps.
However, with the new Venmo card being such a popular debit card, there’s more to know about this app than simply understanding how to transfer money back and forth between friends. Here’s what to know about Venmo fees and the Venmo card.
How Does Venmo Work?
As mentioned, Venmo is (or has been) mainly a payment transfer app. Venmo is free, so to sign up you’ll simply have to create a free account. The only thing you’ll need to create a Venmo account initially will be a linked bank account, debit card, or credit card. Venmo allows you to source money from a credit or debit card or a US bank account.
You can also use your Venmo balance to pay others or make payments online. A Venmo balance refers to the money you’ve received from other Venmo users. This means that if you haven’t signed up with your bank information, you can technically still pay others with money in your Venmo balance.
After signing in, all you have to do is choose who you want to send money to, enter the amount, and complete the transfer. If you’re receiving the transfer, you can either leave it in your Venmo balance or transfer it to your bank account.
What Are the Venmo Fees?
While Venmo is free to use, there are certain Venmo fees for performing certain actions. Setting up a Venmo account and keeping it active both incur zero fees. And, there are also zero fees for sending people money via your bank account or debit card, or Venmo balance. There is a 3% charge if you wish to send money via a credit card. You can add your money to Venmo account easily by connecting your debit cards or bank accounts to Venmo.
Transferring money from your Venmo account to your bank account is free. But, if you need to perform an Instant Venmo Transfer (i.e. you need the funds straight away), you’ll have to pay a 1% fee.
And, while it’s technically not a Venmo fee, you do also need to factor in the Venmo limit for transfers if you plan to send money back and forth frequently. According to the Venmo transfer limits page, your person-to-person sending limit is $299.99 if you don’t verify your account. Once they confirm your identity (which is pretty easy to do), your weekly transfer limit is $4,999.99.
Venmo Debit Card
The Venmo card is similar to an online banking card or prepaid debit card. It works as a Mastercard debit card, but unlike prepaid debit cards, the Venmo card allows you to earn cashback through their rewards program that’s powered by Dosh. When paying at select retailers, such as Sam’s Club, Sephora, and Target, you can receive up to 5% cashback on your purchase.
Other cool features include the ability to set up direct deposit on Venmo. This way, you’re able to access your paycheck up to two days earlier than with traditional banks. And, the card comes with the ability to enjoy contactless payments.
Venmo Card Banking Fees
What are the banking fees for the Venmo card? Like other online bank debit cards, the Venmo card is fee-free. Because you’re not having to cover any overhead costs, you can enjoy fewer fees, such as free ATM withdraws.
However, fee-free ATM withdraws are only if you withdraw money at a MoneyPass ATM. Withdrawing money at a non-MoneyPass ATM will incur a $2.50 ATM Domestic Withdrawal fee. And, the card comes with a $400 daily withdrawal Venmo limit.
How to Get a Venmo Debit Card
To get a Venmo card you have to have a Venmo account first. Then, through the app, you can simply tap the menu option and click on “Venmo Card.”
From there, you’ll be prompted to start an application. Once you fill out the information and sign an agreement stating you understand Venmo fees, the Venmo limit, and everything else related to the card, you’ll have to wait about 5 to 7 days to receive your card in the mail.
To sign up for the Venmo card, you might have to provide your name, address, date of birth, and other information that will allow Venmo to confirm your identity. This includes possibly sending in a copy of your driver’s license or other identifying documents.
How to Add money to a Venmo Debit Card
- You can add money to your Venmo card via your Venmo account
- You can also transfer money from the bank account that's associated with your Venmo account to the Venmo card
- You can also add/withdrawal money from ATMs. A $2.50 ATM Domestic Withdrawal Fee applies when you don't use a MoneyPass® ATM. You may also complete a withdrawal at a bank or financial institution with a $3.00 Over the Counter Withdrawal fee.
Venmo Credit Card
Looking for the Venmo credit card? It’s slated to be released later this year! Reports say that Venmo is going to release the Venmo credit card in the second half of 2020.
Details surrounding the co-branded credit card are still largely under wraps. We know that Synchrony will power the Venmo credit card and that they’ve powered cards for other stores such as Amazon, eBay, American Eagle, Old Navy, and many more. So, it appears to be a strong partnership.
However, as of right now, it’s unclear still what the Venmo credit card fee is going to be and whether or not it will be similar to other Venmo fees.
Other Options for Fee-Free Cards
If you’re interested in a Venmo card but don’t have or want to open a Venmo account, there are other options for you. And, no, we’re not even talking about the Venmo credit card.
The Cheese Debit Card is similar in that you can reload it and pay to earn cashback rewards. It allows you to earn cashback on all spending, not just with select retailers. No banking fees, high cashback rates, and even the chance to earn multiple Cheese Rewards? It’s as good as it sounds. Sign up to join our waiting list today.