Venmo is a great way to send money to your friends and family. But how much can you send at once? And what are the fees? Here’s everything you need to know about sending money on Venmo.
How much can you send on Venmo? Venmo allows new clients to send up to $299.99 immediately after they sign up. Venmo increases these limits to $4,999.99 a week for person-to-person payments and $6,999.99 for payments to authorized merchants after they confirm your identity.
Venmo has become quite popular in recent years especially among the millennial generation to the point that it’s now a trend among young people.
People popularly use Venmo to split bills for dinner, movies, rent, which is exactly what it was created for in 2009. Its acquisition by PayPal in 2016 transformed it from a start-up to the success it is.
Venmo is a great way to send and receive payments, but sometimes things go wrong. Here are some tips on how to unfreeze your account and fix other common problems. Plus, find out how Venmo works and if it reports to the IRS.
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Sending Money on Venmo
To understand how much you can send on Venmo, you need to know their limits for payments. Venmo has imposed restrictions across its different forms of transactions which include;
- Person to person payments
- Venmo MasterCard purchases
- Online purchases with Venmo account
- Venmo In-store QR code purchases
The first payment limit you will encounter is when you create a Venmo account to make your first transaction. New users are limited to sending $299.99 weekly. This applies to all person-to-person payments and any payments you make to authorized merchants.
To increase your weekly limit, a person needs to go through their identity verification process. When you log in to Venmo for the first time, they receive an email telling them Venmo needs to verify their identity. It’s a process that’s meant to prevent financial crimes, and a requirement by the Federal anti-money laundering laws.
The process follows these steps; In the Venmo app, select “Menu,” then “settings” and then click on “Identity verification”. You should see the message, “You’re all set!” The completion of this process grants you a higher weekly limit on spending.
Once you’re verified your overall weekly spending limit becomes $6,999.99. The limit here applies to all person-to-person payments, online purchases, and purchases that involve your Venmo MasterCard. Here is a table to guide you;
|Overall Weekly sending Limit $6999.99||Person to person transactions||Authorized merchants||Venmo MasterCard Purchases|
|Maximum weekly Spending||$4,999.99||$6,999.99||$6,999.99|
The overall combined limit for spending in a week is $6999.99 regardless of whether you are sending or making purchases. This is called the Weekly rolling limit. Your week starts immediately you authorize a transaction. So, if you authorized a payment at 10.00 am on a Monday, the count will reset the next Monday by 10.01 am.
Note: The weekly limit for person-to-person transactions remains $4,999.99.
That means that if you reach the limit, you will still be able to send $1,999.99 to authorized merchants or make purchases worth the same with the Venmo Master Card. So, if you send more than $1,999.99 to authorized merchants or on purchases, your limit for person-to-person payments will decrease.
For example, if you spend $3,199.99 of your weekly limit between your purchases and authorized merchants, you will have only have $3800.00 for person-to-person payments.
Another major question that people ask is, how much can you send on Venmo in a day? Venmo does not have a daily limit on sending money, meaning you can exhaust your limit for the week in one day. However, they do have is a limit for how much you can send per transaction.
For person-to-person payments, the limit is $4,999.99. Authorized merchant payments and Venmo Master Card purchases have a per transaction limit of $2,999.99.
However, what happens when the payment fails? This article will explore the issue of Venmo payments and why they may be declining.
Are there Additional Venmo Limits?
When using the Venmo MasterCard, there are some additional limits on your transactions. They include;
- Reloads limit.
- Daily Limit for ATM Withdrawals, Cashback daily limit, and over the counter Withdrawals stands at $400.00.
- There is also a limit of how much you can spend per merchant which stands at $3,000.00 and resets daily.
Reloads apply when you want to spend some money on Venmo but you don’t have enough in your account to facilitate the transaction. When reloads are enabled, any transaction that exceeds your Venmo balance will cause the additional funds to be pulled from a linked bank account.
Finally, there is a limit for purchasing cryptocurrency through Venmo. With the world slowly embracing cryptocurrency for the future, Venmo allows purchases of up to $20,000 in cryptocurrency per week. You can also only purchase $50,000 worth of cryptocurrency within a year.
How Reliable is Venmo for Sending Money?
Venmo was designed to make quick digital payments between people in just a few taps. The feature that sets Venmo apart from other money transfer apps is its social networking feature.
People can see, like, and comment on other people’s transactions and they too can see when you send money. But that is not a problem for those who value their privacy since you can change your transactions to private where they are only visible to the sender and recipient. You can also block people just like in any other social networking app.
Venmo does not charge fees for most of its transactions, which makes it quite reliable in money transfers such as paying for Uber rides, paying for goods, and even conducting freelance payments. It is also generally safe for transactions since it uses bank-level encryptions to secure client data.
The only major downside is that it is only restricted to people physically located in the U.S, who own U.S phone numbers and bank accounts.
Deciding whether Venmo is for you relies on your needs and when you need a quick way to send money from your phone, it is among the best.
However, some users might have different opinions on the social interaction feature. Some see it as a good communication tool while others view it as a form of oversharing. Either way, the privacy options allow people to use the app with or without having to engage with the social side which makes it viable for everyone.