no monthly service fee
None
$0
Pros
Cons
Venmo is a good tool for quickly transferring money between family and friends. The debit card, credit card, and direct deposits can be useful, but you don't have to use all of the features to qualify to send and receive money.
Venmo- Send and receive money electronically
- Money transferred to you within the app is not FDIC insured; money you deposit into your Venmo balance using direct or check deposits is FDIC insured
- Earn cash back with your debit or credit card, depending on current promotions from companies
- Use your debit card with the MoneyPass ATM network for free; pay $2.50 to withdraw funds from Mastercard, Cirrus, or PULSE ATMs
- Cryptocurrency purchase/selling fee: $0.50 for amounts between $1.00 and $24.99; 2.3% of your purchase or sale amount if it's between $25 and $100; 2.0% of your purchase or sale amount if it's between $100 and $200; 1.8% of your purchase or sale amount if it's between $200 and $1,000; 1.5% of your purchase or sale amount if it's over $1,000
Venmo is a good tool for quickly transferring money between family and friends. The debit card, credit card, and direct deposits can be useful, but you don't have to use all of the features to qualify to send and receive money. If you don't have a bank account and want to explore more options, consider the best prepaid debit cards.
Venmo Pros and Cons
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Venmo Overview
Venmo is a worthwhile tool for sending money back and forth as a family member, friend, or customer.
Venmo could be a good option if you don't have a regular checking account and don't want to carry around large amounts of cash. You can set up direct deposits to go straight to Venmo, and the company even lets you receive direct deposits up to two days early.
If you use a Venmo debit or credit card, you'll earn up to 5% cash back on purchases at select retailers. However, there are fees for direct deposits and mobile check deposits, so you may have to earn a significant amount in cash back to cancel out these fees.
About Venmo
Venmo is an app for sending money electronically to friends, family, or businesses. You can use the app simply for sending and receiving money, or you may also choose to use Venmo's banking features.
You can request a Venmo debit card or credit card and earn cash back with both. You'll earn 1% to 5% cash back on purchases at retailers like Walgreens and Costco, but the exact deals vary depending on current promotions. You can see promotions in your Venmo app if you have a card. If you want to know more about which retailers will help you earn cash back before committing to a card, you can chat with a Venmo representative within the app about ongoing deals.
Venmo also now offers a debit card for teens ages 13 to 17 that doesn't charge an application fee or monthly maintenance fee, or have a minimum balance. Parents or legal guardians will open the Venmo Teen Debit Card for their child. They can provide their teen access to the Venmo app, and monitor their spending through notifications or lock and unlocking the Teen Debit Card.
You can withdraw money for free at MoneyPass ATMs. You're also able to use your Venmo card at Mastercard, Cirrus, or PULSE ATMs, but you'll pay a $2.50 ATM fee. The ATM provider may also charge a fee.
Venmo doesn't charge monthly fees, but you may have to pay some fees for the checking features. You'll pay 1% for depositing a government or employer check and 5% for depositing another type of check, with a minimum charge of $5.
The money other people transfer to you within the app is not insured by the FDIC. But any money that goes into your Venmo balance via direct deposits or mobile check deposits is FDIC insured, so it's safe.
Venmo FAQs
Is Venmo legit?
Yes, Venmo is a legitimate app. If you make a direct deposit that goes to your balance, that money is FDIC insured. Up to $250,000 is secure per depositor. If you send money to someone else on the app, however, that money is not FDIC insured.
How does Venmo work?
Venmo is an app that lets you send or receive money. To use the app, connect Venmo to your bank account or set up mobile check deposits. Venmo has a debit card and credit card. The app also lets you buy cryptocurrency.
Does Venmo charge a fee?
You won't be charged any fees if you transfer money from your Venmo balance to your linked bank account. There's only a 1.75% fee if you want your money deposited into your account instantly. If you deposit checks, you'll have to pay at least $5.
Does Venmo require a Social Security number?
Venmo requires a Social Security number (SSN) or taxpayer identification number (ITIN) to verify your identity. However, you may still use the app to receive and send money if your identity isn't verified.
How Venmo Compares
We've compared Venmo to two prepaid debit cards that offer similar perks. Like Venmo, the best prepaid debit cards can be useful tools if you don't have a regular bank account.
Venmo vs. Bluebird by American Express
Both options allow you to receive your paycheck up to two days early. Choosing between Venmo and Bluebird by American Express Prepaid Debit Card might come down to differences in fees.
Venmo has fees for direct and mobile check deposits. Bluebird doesn't charge these fees — unless you want to expedite your mobile check deposit, in which case you'll pay 1% on a government or employer paycheck and 5% on other checks. Bluebird does have a $3.95 cash reload fee, though.
Venmo vs. American Express Serve Cash Back Card
Both options allow you to receive your paycheck up to two days early. If you're looking for a debit card with minimal fees, however, Venmo is a better choice.
The American Express® Cash Back Serve Prepaid Debit Card charges $9.95 per month (although there are no fees for residents of New York, Texas, or Vermont). American Express also charges you up to $3.95 each time you reload money onto your card.
You'll still want to be mindful of minor fees on the Venmo app, though. Venmo charges fees for direct and mobile check deposits, so it may be significant if you deposit checks frequently.
Why You Should Trust Us: How We Reviewed Venmo
For our Venmo Review, we used our bank account ratings methodology. We considered minimum opening requirements, monthly fees, customer support availability, ATM network size/fees, mobile app ratings, miscellaneous features, and the security and ethics of the company to determine the app's rating.
We assign star ratings can be anywhere from one to five stars. We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
