Written by Laura Grace Tarpley, CEPF and Sophia Acevedo; reviewed by Evelyn He
- Pros and Cons
- Overview
- About Venmo
- FAQs
- How Venmo Compares
- Why You Should Trust Us
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The information for the following product(s) has been collected independently by Business Insider: American Express® Cash Back Serve Prepaid Debit Card. The details for these products have not been reviewed or provided by the issuer.
Venmo
On Venmo's website
Insider’s Rating
4.25/5
Fees
no monthly service fee
Minimum Opening Deposit
$0
Pros
- Pay and receive money from family and friends
- Set up direct deposits to your Venmo balance
- Receive direct deposits up to 2 days early
- Set up mobile check deposits into your Venmo balance
- Money from direct deposits and check deposits is FDIC insured
- Get a Venmo debit card
- Get a Venmo credit card
- Earn cash back on certain purchases with your debit or credit card
- Buy Bitcoin, Ethereum, Litecoin, or Bitcoin Cash through the app
- No monthly service fees
- No fee for transferring money from your Venmo balance to a bank account
Cons
- 1% fee (min. $5) for depositing government or payroll checks
- 5% fee (min. $5) for depositing non-government and non-payroll checks
- 1.9% plus $0.10 if you're a seller and receive a payment
- Cash back depends on the promotions available
- $400 daily withdrawal limit from ATMs with your debit card
- $2.50 out-of-network ATM fee
- 3% fee for sending money to people using your credit card
- 1.75% fee ($0.25 to $25) 1.5% for transferring money from your Venmo balance to a bank account using the "instant" option
- Fee for purchasing or selling cryptocurrency
- No interest earned on your balance
Insider’s Take
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.
Product Details
- 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 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 a scale of 0 to 5 stars. We considered minimum opening requirements, monthly fees, customer support availability, ATM network size/fees, mobile app ratings, and the ethics of the company to determine the app's rating.
Laura Grace Tarpley, CEPF
Personal Finance Reviews Editor
Laura Grace Tarpley (she/her) is an expert in mortgage rates, refinance rates, lenders, bank accounts, and borrowing and savings tips for Personal Finance Insider. She worked on Business Insider's "The Road to Home" series, which won a Silver award from the National Associate of Real Estate Editors.She has written about personal finance for over seven years. Before joining the Business Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU.
Sophia Acevedo
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, and budgeting and saving. She is highly knowledgeable about long-term trends in rates and offers at banks across the U.S.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circ*mstances and overcoming their fears around money.ExpertiseSophia's expertise includes:
- Bank accounts
- Savings and CD rate trends
- Budgeting
- Saving
- How banks operate
EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.
Evelyn He
Compliance and Operations Associate
Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.
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