Venmo is a great way to send and receive payments from friends and family. However, there are some cons associated with using Venmo.
First, if you’re not careful, it’s easy to overspend with Venmo. Because the app is linked to your bank account or credit card, you can quickly rack up debt if you’re not careful about how much you’re spending.
Second, there have been reports of fraud and scams associated with Venmo. For example, scammers have been known to create fake profiles in order to trick people into sending them money. So it’s important to be aware of who you’re dealing with when using Venmo.
Third, there are fees associated with using Venmo. If you choose to link your bank account or credit card to your Venmo account, there may be fees charged by your financial institution. And if you use a debit card linked to your account, there may also be a fee for each transaction (usually around 3%). So it’s important to factor in these fees when deciding whether or not to use Venmo for payments.
Fees for some services
While Venmo does not charge a fee for basic transactions, there are fees associated with certain features. For example, there is a 3% fee for transactions made using a credit card. Additionally, Venmo charges a 1% fee for instant transfers to your bank account. This fee can be waived if you’re willing to wait a few days for the transfer to process.
Privacy may be compromised unless you adjust privacy settings
When you sign up for Venmo, your account is public by default. This means that anyone can see your transactions, including how much money you’re sending or receiving, and who you’re sending it to or receiving it from. This could be a problem if you’re not comfortable with strangers knowing this information about you.
To adjust your privacy settings, go to the “Settings” tab and click on “Privacy.” From here, you can change your transaction history from public to private. You can also choose to only allow people who are in your contacts list to see your transactions.
Money is unavailable instantly unless you pay a fee
Venmo is a digital wallet that lets you make and share payments with friends. You can link your bank account or credit card to Venmo and transfer money to others for free. The money you receive in Venmo is deposited into your account immediately, but if you want to withdraw it, there is a 1% fee.
This can be seen as a con because it means that if you need the money right away, you will have to pay a fee. However, some people may view this as an advantage because it keeps the money in your Venmo account until you are ready to use it (similar to how PayPal works). This could help prevent accidental overspending since the funds are not readily available like they would be if they were in your regular checking or savings account.
Another potential downside of Venmo is that transactions are public by default. This means that anyone who has your phone number or email address can see what you’ve been paying for unless you change the privacy settings. While this may not be a big deal for some people, others may prefer to keep their financial transactions private.
No ability to earn interest on money on money deposited with Venmo
While Venmo is a great payment platform, it does have some cons. One of these is that users are not able to earn interest on any money deposited with the app. This means that if you’re looking to save up money in Venmo, you won’t be able to grow your balance through interest like you could with a traditional savings account. Additionally, there have been reports of fraudulent activity on Venmo. While the company does have some protections in place, it’s important to be aware of the risks before using the app.