Venmo has become one of the most popular peer-to-peer payment apps in the U.S., especially among younger users who like the convenience of splitting bills, paying friends back instantly, and adding fun notes or emojis to transactions. It’s fast, easy to set up, and even accepted by some merchants, making it more than just a way to send money.
But with convenience comes questions about safety. Since Venmo stores personal and financial information, many users wonder whether it’s secure enough for everyday use. In this guide, we’ll break down how Venmo works, what it costs, how safe it really is, and the best alternatives if you’re looking for other options.
What Is Venmo and How Does It Work?
Venmo is a peer-to-peer payment app that lets you send or receive money instantly from friends, family, or even select online merchants. It launched in 2009 and was acquired by PayPal in 2013, giving it the backing of one of the largest digital payment companies in the world.
Setting up a Venmo account is simple. You download the app, create a profile, and link a bank account, debit card, or credit card. From there, you can transfer money to other Venmo users in the U.S. with just a few taps.
What makes Venmo stand out from other payment apps is its social feed. Every payment includes a note, often filled with jokes, inside references, or emojis. Splitting dinner or covering movie tickets feels less like a transaction and more like part of the conversation.
Venmo Fees: What You’ll Pay and What’s Free
Most Venmo transactions are free, but some actions come with fees. Here’s a quick breakdown of what to expect:
- Credit card payments: 3% fee when you send money using a credit card.
- Instant transfers: 1.5% fee (minimum $0.25, maximum $15) to move money instantly to a linked bank account or debit card. Standard transfers to a bank take 1–3 business days and are free.
- Business payments: 1.9% + $0.10 fee when money is sent to a business profile or marked as a payment for goods or services.
- Cryptocurrency trades: 1.5%–2.3% fee for buying or selling digital currency within the app.
While sending money to friends or family through your bank account is free, it’s smart to keep these extra costs in mind if you plan to use Venmo for business or instant transfers.
See also: How to Transfer Money Between Bank Accounts in 2025
How Venmo Makes Money
Venmo itself is free for most personal transactions, but the company still earns revenue in several ways. Merchants pay a 1.9% + $0.10 fee on every purchase made through Venmo, whether online or in-store. Venmo also makes money from user fees such as instant transfers and credit card-funded payments.
In addition, Venmo offers its own debit and credit cards. These generate income through interchange fees charged to merchants, interest charges on credit card balances, and ATM fees if you withdraw cash outside partner networks.
Venmo Cards: Debit and Credit Options
Venmo provides two optional cards for users who want to spend directly from their account balance:
- Venmo Debit Card: Linked to your Venmo balance and usable anywhere Mastercard is accepted. ATM withdrawals are free at MoneyPass ATMs, but out-of-network withdrawals typically cost $2.50 plus any operator fees.
- Venmo Credit Card: A Visa card that offers cash-back rewards of up to 3% in your top spending category, 2% in the second-most-used category, and 1% on everything else. Standard credit card interest rates and fees apply, including higher costs for cash advances.
Both cards integrate with the app, so you can track spending, split purchases with friends, and earn rewards directly in Venmo.
How Safe Is Venmo for Sending Money?
No payment app is completely risk-free, but Venmo does have several protections in place to keep your money and data secure. The app uses encryption to shield sensitive information and offers extra safety tools you can turn on, like a PIN code or fingerprint unlock. You can also enable multifactor authentication and block unwanted requests from other users.
Still, Venmo isn’t immune to issues. The company has faced criticism for past security breaches, and scammers sometimes target users through fake requests or phishing attempts. If someone gains access to your account, they can change your password and move funds quickly.
The safest way to use Venmo is to limit how much money you keep in your balance. Transfer funds to your bank account as soon as you receive them, and set up push notifications for logins and payments so you’ll know immediately if anything suspicious happens. Avoid using Venmo with strangers or for marketplace purchases, since transactions can’t be reversed.
Venmo Privacy Settings and How to Stay Safe
By default, Venmo transactions are public, meaning other users can see who you paid and why—unless you change your settings. To keep your payments private, open the app’s settings and switch your default privacy option to “Friends only” or “Private.”
For safer use, follow these tips:
- Keep your balance low: Transfer money to your bank quickly instead of leaving it in Venmo.
- Use privacy controls: Limit who can view your transactions.
- Turn on security features: Enable multifactor authentication and push notifications for new logins or payments.
- Avoid strangers: Only use Venmo for people you know and trust.
- Watch for scams: Ignore phishing emails or fake payment requests.
These simple steps reduce your risk of fraud and protect your personal information.
Venmo Teen Accounts
Venmo recently introduced “Teen Accounts” for users aged 13–17. These are sub-accounts linked to a parent or guardian’s account, who can monitor activity and control spending. Teen accounts default to private, so transactions aren’t visible to the public feed.
Pros & Cons of Using Venmo
Like any payment app, Venmo has its strengths and drawbacks. Here’s a quick look at the main advantages and disadvantages to consider before using it.
Pros
- Free for personal use: Sending money from a linked bank account is free.
- Instant transfers: Payments between friends show up immediately.
- Social features: Notes and emojis make splitting costs more fun.
- Merchant payments: Accepted at select retailers and apps.
- Debit card option: The Venmo Mastercard debit card works anywhere Mastercard is accepted in the U.S.
- Extra security settings: PIN codes and two-factor authentication add protection.
Cons
- Transaction fees: Credit card payments, business transactions, and instant transfers cost extra.
- Not FDIC-insured: Money held in your Venmo balance isn’t federally protected.
- Limited privacy: Transactions are public by default unless you change settings.
- Security risks: Past breaches and scams show potential vulnerabilities.
- Weak customer support: Help can be slow when problems arise.
Best Venmo Alternatives for Peer-to-Peer Payments
When it comes to P2P payments, Venmo is not your only option. Here are five other payment methods you can consider.
Zelle
Zelle is a P2P app that is funded by several leading banks and credit unions. One of the biggest advantages of using Zelle is that there are absolutely no fees to use the service.
You can send money instantly by entering the recipient’s phone number. But like Venmo, Zelle doesn’t offer any user protections for buying or selling items.
See also: Zelle vs. Venmo
Cash App
Cash App is offered by Square and is quickly overtaking Venmo in terms of popularity. You can send and receive money instantly, and the app is only available for use in the U.S.
The app does charge fees, and they are similar to what Venmo charges. However, one of the downsides is that online sellers have to pay a 2.75% fee per transaction. So if you plan on regularly selling items, you’ll want to look for another option. Here is a brief explanation of how Cash App works.
See also: Cash App vs. Venmo
PayPal
PayPal, which owns Venmo, offers many of the same features but with a wider reach. Unlike Venmo, PayPal works internationally, making it the better choice if you need to send money outside the U.S. Fees are similar between the two, but PayPal generally provides stronger buyer protections and is considered more secure for online purchases.
Facebook Messenger
Facebook Messenger lets users send and receive money directly within the chat app. Transfers are free, but the process is slower compared to Venmo, Zelle, or Cash App. It works best if you already use Messenger regularly and want a simple way to pay friends without downloading another app.
See also: The 9 Cheapest Ways to Send Money Online
Final Thoughts
Venmo makes sending money quick and easy, especially for casual payments between friends. The app’s social features add a fun twist, but you’ll need to be mindful of fees and take advantage of its security settings to keep your account safe.
If Venmo doesn’t feel like the right fit, plenty of alternatives—like Zelle, Cash App, and PayPal—offer similar convenience with different strengths. Compare fees, transfer speed, and buyer protections before choosing the app that matches your needs best.
Frequently Asked Questions
Can I use Venmo internationally?
No. Venmo is only available to users located in the United States. You can’t send or receive money from international accounts.
Does Venmo have a limit?
Yes. If you haven’t verified your identity, you can only send up to $299.99 per week. Once your identity is verified, the weekly limit increases to $60,000 for person-to-person payments, merchant payments, and purchases with the Venmo debit card.
Is Venmo insured by the FDIC?
No. Money stored in your Venmo balance is not insured by the Federal Deposit Insurance Corporation (FDIC). For added protection, transfer funds to your linked bank account instead of keeping a large balance in Venmo.
How does the Venmo debit card work?
The Venmo debit card is connected to your Venmo balance and works anywhere Mastercard is accepted. You can also withdraw cash from ATMs, with free access at MoneyPass machines and fees at out-of-network ATMs. Purchases and withdrawals are deducted directly from your Venmo balance.
Can you cancel a Venmo payment?
No. Once a payment is sent, it cannot be canceled if the recipient already has a Venmo account. If the payment is still pending because the recipient hasn’t joined Venmo, you may be able to cancel it from the app. Always double-check the username before sending money.
