Venmo Instant Transfer – How Does Venmo Work | Transfer Fee and Limit

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Its no longer news that Venmo has launched instant transfers to bank accounts. This feature acts as an optional alternative to Venmo’s standard bank transfer service, which takes about one to three business days to process transactions. With Venmo instant transfer, you have a service that gets funds from your Venmo account to hit your bank account within minutes.

Venmo Instant Transfer - How Does Venmo Work | Transfer Fee and Limit

Venmo payments app, is owned by PayPal. This payment app made the announcement in January 2018 that it is offering Instant Transfers to eligible Visa and Mastercard debit cards for a small fee. When the feature was first launched, the Venmo instant transfer fee stood at a flat $0.25. But it was later bumped up by Venmo to 1% of the transfer amount. Thus, currently the minimum fee is at $0.25 while the maximum fee stands at $10.

However, Venmo gives its users the liberty of choosing between the standard transfer option and the instant transfer option if they do not want to pay for the convenience of instant payments. With more than 40 million active accounts and still counting, Venmo has more users as compared to some of the U.S. bigger banks.

How Does Venmo Work

Those who want to, can register on Venmo with an email address. Or they can also join the platform by connecting their Facebook account with the digital payment service. The second option enables them use their login details on Facebook to log into their digital payment platform. The Venmo app is available for iOS and Android devices and also includes all the functionalities of the web platform.

Immediately you register and log into the system, you can connect with family and friends who are using Venmo. Here, you can network with other people on the platform to collect or send payments by linking your debit or credit card accounts.

If you are sending money to somebody on the network, you’ll be required to choose the person to whom you want to send a payment. Indicate the amount you want to send, and provide the reason for the payment, and then confirm the payment.

The purpose of the payment will be displayed on the timeline which can be viewed by people on the network. However, a user can choose to make the reason private and hide it from his/her timeline. The recipient on the other end will get a receipt of payment, link a bank account, as well as deposit the money securely.

Venmo Instant Transfer Fee

As a free-to-use payment platform, Venmo makes its money through transaction fees. Most of the transactions done on the platform incurs no transaction fees. However, for major credit transactions, the company charges a 3% processing fee for every payment made using a credit card.

Venmo Instant Transfer Limit

So many people want to know what the Venmo instant transfer limit is, here’s your answer. According to Venmo User Agreement, its transfer limit may change from time to time in Venmo’s sole discretion.

You also have to note that once your identity has been verified on Venmo, the general limit increases substantially. Thereafter, its gets refreshed on a rolling, weekly basis. What this means is that once you hit your limit for the week. You will have to wait until exactly one week after a transaction is posted for the amount of that transaction to stop counting against your limit. Here’s a break down of the Venmo instant transfer limits:

  • For all transactions combined: A limit of $4,999.99 per week on a rolling basis applies.
  • For sending limits, it gets up to $2,999.99 per week on a rolling basis.
  • Payments for goods and services with vendors who accept Venmo has a limit of up to $2,000 per purchase, and up to 30 transactions per day.

For those who have a Venmo Mastercard debit card, there are other transaction limit you have to note. The first is that you can’t make any individual purchase above $3,000. For those who have reloads on their card, they are limited to $100 per week, on a rolling basis.

You are also at liberty to take out $400 per day through an ATM, over the counter withdrawal, or cash back transaction.

How Safe is Venmo?

According to Venmo, it uses bank-level data encryption and security measures in protecting its customers from unauthorized access to their accounts. Venmo also prompts users to create a PIN code which they’ll be using to access the platform via mobile applications.

Thus, the company offers a guarantee of its customer’s security. And if the security measures fail and customers report the issue within two business days. The customers will only be liable for $50 worth of losses.

If you happen to lose your smartphone or tablet with all the Venmo information saved on it, you can lock the device to prevent unauthorized access by the person who picks up the phone.

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