If you go to a flea market or buy an item from a small retailer, you may have noticed that the payment options have changed. For some sellers who used to rely on traditional cash payments, Venmo has become a business option to generate income.
Venmo, owned by parent company PayPal, had nearly 90 million accounts as of August 2022. Multiple studies conducted by the digital wallet service found that shoppers are 19% more likely to make a purchase with Venmo than with traditional payment methods, and Venmo users make twice as many purchases as the average shopper.
Venmo users can send payments using their Venmo balance or directly from their bank account.
How to add money to Venmo
Only Venmo Debit Card holders can add funds from their bank account to their Venmo balance. Venmo’s Mastercard debit card allows users to make purchases directly from their Venmo balance.
If you have a Venmo debit card, you can add money to your Venmo balance as follows:
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In the Venmo app, navigate to the Me tab on the far right
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Make sure you’re in the wallet section (not transactions) and select “Manage” on your Venmo balance
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Enter the amount you want to transfer, then click Next
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Confirm your bank account and transfer, then tap Add Now.
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What is Venmo?
Venmo is a peer-to-peer digital wallet where users link their bank accounts to send funds back and forth. Venmo allows you to pay and request other users, and it also has a social component that allows friends to see each other’s payment activity without seeing the exact dollar amount they’re sending.
Business owners can also use Venmo for sales transactions for a small fee.
How does Venmo work?
Download the Venmo app to use the digital wallet. Once you’ve created your account, add a card or link a bank account to the app or desktop. You’ll need to verify your bank account, either by logging into your bank or by verifying two small transfers from Venmo.
Now you can send and request money to your friends. Pressing the “V” in the bottom center of your phone will bring up the payment process where you can enter a username, name, email address or phone number to find your friend. After entering their name, enter an amount and add a note about the payment and click “Request” or “Pay”.
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How to pay with Venmo credit
You don’t need to have money in your Venmo balance to pay other users in the app, but using your Venmo balance makes for a hassle-free payment without your bank account being involved.
Tap the “V” at the bottom center of the app to make a payment. Enter the user, amount and a note, then click Pay. It should appear automatically when you have enough Venmo balance to cover the payment. Venmo only allows you to pay from your bank if your balance doesn’t cover the transaction.
How to transfer Venmo funds to your bank account
Transferring your Venmo balance to your bank account can be done in a few simple steps. Press “Transfer Funds” in the “Me” section of the app, enter the amount you would like to transfer and select the account to transfer it to.
You can also choose traditional transfer in 1-3 business days or instant transfer, but it comes with a small fee.
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Why can’t I use my Venmo balance to pay?
Venmo is required by the US Patriot Act to verify users’ identities. If you’re having trouble making payments with your Venmo wallet, it may be because you haven’t verified your identity.
To verify your identity in the app:
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Go to the “Me” tab on the far right.
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Tap “Settings” in the top right.
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Scroll down to “Security” where you should see “Identity Verification”.
Venmo collects a variety of documents and information to verify you, including your name, address, date of birth, social security number, or unique tax identification number. You may also be asked to upload recent documents for other purposes:
If Venmo requires additional verification of your name and date of birth:
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US passport
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Driver’s license
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Government-issued ID
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DHS card
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tribal ID
If Venmo requires additional verification of your proof of address:
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Bank, credit card or brokerage statement
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electricity and gas bills
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W2 or Payroll
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To rent
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car registration
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IRS letter
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Driving license or other official ID with current address
If Venmo requires additional verification of your SSN or ITIN:
Is Venmo safe?
Venmo is generally safe as it uses encryption to protect your account and financial information.
You can securely verify the identity of the user you are paying by making sure the username and profile picture are correct. Venmo may also ask you to verify the last four digits of the user’s phone number when you first pay them. You can bypass this step if needed, but it’s an extra security measure for convenience.
You can also add a PIN code to the app for two-factor authentication. If your phone is lost or compromised, remove the account from the device on Venmo.com by going to Settings and then Security to remove the session.
If you’re worried about other users seeing your transactions, try changing Venmo’s privacy settings. Venmo users will never see the exact dollar amount sent, but they may be able to see the note attached to the transaction. On the Pay or Request screen, click the privacy setting in the lower right corner above Pay. Here you have three options:
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Public: Anyone on the internet can see this transaction
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Friends: Only the sender, recipient, and their Venmo friends can see
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Private: Only you and the recipient can see
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This article originally appeared on USA TODAY: How to Add Funds to Venmo: Use Your Balance to Make Payments
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