Understanding the Venmo Transfer Limit
With technology wheel opening doors with every day, the financial sphere has not been left behind either. While in the past you would have had to manually walk into a banking hall and access your bank account to send and receive money, now you can do that with just a few clicks on your phone or computer using a money transfer service like Venmo.
What is Venmo?
Venmo is a US based, licensed provider of money transfer services that is currently owned and operated by PayPal. The idea was conceived by two University of Pennsylvania roommates, Iqram Magdon-Ismail and Andrew Kortina who sought to upgrade from the boring conventional ways of sending money, to something simpler and fun. It is then that they conceived a way of sending money via text messages later upgrading it to a smartphone app. They sold the company to Braintree in 2012 who later sold it to PayPal in December 2013 for a whopping $800 million. Having handled transactions to the tune of $12 billion in just the first three months of 2018, Venmo is quickly becoming the money transfer service of choice for those residing in the USA to send money to their friends and family.
How Does Venmo Work?
Users access Venmo through a mobile phone app or by logging on to their official website. One signs up by filling out the required basic information and providing bank account information. One can check for recipients using Venmo user name, phone number or email. Once someone opens an account, they can have an operating balance in the account to shop and send money with. One can also enable the bank transfer option by linking a bank account. One can also order for a Venmo MasterCard to use in making payments or still link a credit card or debit card.
Venmo Transfer Limit and Processing Fees
When you make payment using a bank account or debit card, there is no fee attached to it and the service is totally free. However when using credit cards, each transaction attracts a 3% processing fee. If someone makes a payment but their Venmo balance is not sufficient to complete that specific transaction, the service automatically deducts the remaining funds from the linked card or bank account. When you first create a Venmo account and are yet to verify your account, you are limited to a $299.99 weekly rolling limit for all your purchases and payment transactions for that seven day period. When you verify your identity, the rolling limit is raised to $2,999.99 per week. However this limit only applies to the Venmo account and not the Venmo card.
How Do You Verify Your Identity to Increase the Venmo Transfer Limit
To verify your identity and stretch the weekly rolling limit of your Venmo account from $299.99 to $2,999.99, you need to log on to the Venmo official website. You will be asked to provide necessary information to confirm your identity which include your birthdate, zip code, and the last four digits in your SSN. After your account verification is successful, you now have a window of opportunity to make more payments and purchases. Your weekly rolling limit for sending funds gets raised to $2,999.99, and you have a $2000 per transaction threshold for authorized merchant payments and Venmo visa debit card transactions. Combining all transactions, you therefore have a $4,999.99 total rolling limit per week. Card limits and Venmo account limits affect each other per seven day period. If for example someone was to send $2,500 using their Venmo account in a given week, only $2,499 would be eligible for use in either card transactions or authorized merchant payments to make a total $4,999.99 rolling limit for that week
Running on the MasterCard network, the Venmo MasterCard offers overdraft protection and ATM access and can be used at any outlet that uses MasterCard. The card has a limit of $400 allowed in daily withdrawals in one given day. Non-Money-Pass ATM withdrawals however attract a $2.50 withdrawal fee. An exciting feature is that the customer can get to track their card’s transaction history from inside the app and get a chance to cancel any unwanted actions.
Bank Transfer and Instant Transfer
While a standard Venmo transfer may take up to 1-3 business days to process and at no fee, Venmo users have the chance to enjoy a new feature known as Instant Transfer, which allows them to transfer funds from their Venmo balance to their Visa card or their MasterCard debit card within a period of 30 minutes, for a small $0.25 fee per transaction. When it comes to bank transfer, an unverified user may be allowed to send up to $999.99 to their bank account per week. However when you verify your identity, you get a bank transfer limit of up to $19,999.99 per seven day period. Each single transaction nonetheless cannot surpass the $2,999.99 mark to ensure all dealings via Venmo are secure and trustworthy.
Venmo vs. PayPal
Although Venmo is a service of PayPal, sending money from one network to the other is not allowed as one may one may expect. Although both networks are easy to use and readily available on mobile platforms, there are some notable differences that make each service unique. While Venmo for instance is only open to use by those residing in the US alone, PayPal is international, available in 26 currencies and in over 200 markets. PayPal also allows one to transfer up to a hefty sum of $10,000 while Venmo won’t surpass $2,999.99 in one transaction. The most unique factor of Venmo has to be its social component. While most money transfer networks keep their dealings very formal, Venmo has a social media-like feed where users get to share their transaction details with friends and family who can in turn comment or like the activity and use emojis to bring a lively experience. The world will certainly never be the same again with these developments and you should occasionally Venmo your friends and family and keep them close.