As mentioned earlier, Venmo is one of several payment systems based on a peer-to-peer model. That means Venmo is the middleman between your bank account and someone else’s. If you issue payment via Venmo, transfer money from one of your linked accounts into Venmo. Then, Venmo holds onto those funds until the recipient transfers them into their linked account.
It’s a great option because everyone controls their linked accounts, so no one needs to exchange any confidential account information back and forth. Instead, you share your Venmo address, and each party manages the rest. Venmo is also free in most situations, although it does allow a payer to remit payments using a credit card. If, as a payer, you choose to remit payments via credit card, you will pay a 3% processing fee when you remit those payments. But you won’t incur any fees if you use a linked bank or debit card account. Unfortunately, Venmo does not currently support recurring payments so this option will require processing payments individually every time.
If you receive monies from Venmo and transfer them into your linked bank account, you will incur a 1% fee for an “instant transfer,” which can be completed within 10 minutes. If you elect instead to receive a standard transfer, there will be no charge. Standard transfers take 1-3 business days to complete.
Intrigued? Venmo is a quick, easy, and often free payment process. In addition, most transactions can easily be accomplished through their app or online portal. So if you want to remit electronic payments, check out this healthy option!
We encourage you to do so if you haven’t checked it yet!
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