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Is Venmo safe and do its fees make sense?

Varo to Anyone vs. Venmo

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All Varo products and services mentioned below are contingent on opening a Varo Bank Account. Qualifications may apply. 

In an era where digital transactions are increasingly shaping the way we handle our finances, Venmo has emerged as a popular platform for peer-to-peer payments, helping change the way we send and receive money, split bills, pay friends or family, and make everyday purchases. 

However, understanding the safety features, security and privacy risks, and fees associated with Venmo or any other payment platform is crucial when entrusting it with your financial transactions. It’s equally important to make sure you’re using a peer-to-peer (P2P) payment app that’s designed with you and your financial needs in mind.

That’s where Varo to Anyone comes in. With Varo to Anyone, sending money to anyone from the Varo App is now fast, free, and secure.1 Even your friends and family who don’t use Varo can quickly receive the money you send them with a valid debit card, and there are no fees!

Below, we’ll discuss the safety of using Venmo, some of its potential risks, its fees, and how Varo to Anyone stacks up when it comes to finding the right peer-to-peer payment tool for you.

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Is Venmo safe and secure?

To reduce the risk of data breaches and fraud, Venmo has implemented several security and privacy features designed to help keep your information safe, including data encryption, two-factor authentication, and the ability to keep transactions between users private. 

Although these security and privacy measures help to keep users’ data secure, there are still some risks to be aware of, including the following.

  • Public Transactions: Venmo has a social feed that displays payments made by users and to whom they were made, which could expose some users' financial and personal information to the public if they don’t configure their privacy settings.

  • Fraud and Scams: While you can’t avoid attempts at fraud, there are a number of steps you can take to help protect your personal information and money, as well as limit your exposure to scams and identity theft attempts when sending payments online.

  • Misuse of Data: Venmo shares users' data with third-party companies, which can potentially expose their personal information to other companies.

Users can help mitigate these risks by adjusting their privacy settings, enabling two-factor authentication, using strong passwords, and by not sharing their login credentials with anyone else. Although Venmo is generally safe to use, users should be aware of these risks so that they can take the necessary steps to protect themselves.

What fees does Venmo charge?

Although Venmo is free to use for most transactions, there are some fees for certain transaction types and features.

  • Standard vs. Instant Transfers:  Standard transfers from your Venmo wallet to your bank account are free, but they can take 1-3 business days to arrive in your bank account. Venmo charges a 1.75% fee (minimum $0.25, maximum $25) for instant transfer of funds from your Venmo wallet to your bank account.2

  • Credit Card: Venmo charges a 3.00% fee when you use your credit card to send money.2

Over time, these fees can add up, especially if you’re a regular Venmo user who prefers instant transfers into your bank account.

How does Varo to Anyone compare?

Fortunately, Varo to Anyone is officially here! That means sending money to anyone from the Varo App is now fast, free, and secure. Unlike Venmo, even your friends and family who don’t use Varo can easily receive the money you send them, all they need is a valid debit card and there are no fees!

With Varo to Anyone, you can make everyday payments at the touch of a button and do even more of your banking right from your Varo App.

It’s fast.

With just a few taps in your Varo App, you can send money to anyone instantly, and they’ll immediately receive instructions on how to cash out their funds. If you're sending to another Varo customer, they'll receive the funds instantly and will be notified if they have push notifications turned on.

It’s free.

There are no fees for you to send money to anyone. The recipient can easily cash out to their debit card without a fee. Unlike Venmo and other peer-to-peer payment apps, there is no extra charge to send payments quickly.

It’s secure. 

Your payments are secure and your information is protected with Varo. Varo uses advanced encryption and safety measures to protect your personal data. Unlike Venmo, Varo does not have a social feed where information about your payments is displayed publicly. We’re also proud to partner with the American Bankers Association to help keep our customers informed about staying safe from scams through BanksNeverAskThat.com.

Notes: When sending money to someone outside of Varo, you’ll need their email address or U.S. phone number. Your recipient has 14 calendar days to claim their transfer.

Sending money to your friends has never been easier with Varo to Anyone! Although Venmo remains a popular peer-to-peer payment platform, it’s worth knowing that there’s an alternative way to send funds that lets you skip those pesky fees and wait times.

Unless otherwise noted above, opinions, advice, services, or other information or content expressed or contributed by customers or non-Varo contributors do not necessarily state or reflect those of Varo Bank, N.A. Member FDIC (“Bank”). Bank is not responsible for the accuracy of any content provided by author(s) or contributor(s) other than Varo.

1 For transfers with other Varo customers, Varo to Anyone have set limits on the dollar amount or number of transfers each person can send or receive. Limits are set based on how long your Varo Bank Account has been open and your prior account activity.

You’ll find your transfer limits after selecting a recipient and going to the Send Money screen in your Varo app under where you enter the amount. Our system automatically reviews account activity, so your limits may change in the future.

2 https://venmo.com/resources/our-fees/

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