- Free mobile application
- No fees for most transactions
- Options for businesses and nonprofits
- 3% on credit card transactions
- Payment limits for donors
Venmo, a service offered by payment processing giant PayPal, is an instant payment mobile application that can be utilized for personal and organizational use. The mobile app itself is stable for use, Venmo can be helpful for a variety of purposes.
Venmo was built for one thing: Instant payments. Users can create a Venmo account by using their Facebook signup portal, email option, or an existing PayPal account. Additionally, you can send and receive payments sourced to an in-app balance or your bank account, debit, or credit cards. The service is offered through a mobile phone application built for Android and iOS mobile devices with a desktop application. Payments can be sent and received through the Venmo app or a supported messaging application.
Downsides of using Venmo
Some of the setbacks of using Venmo as a paying option include limits on donation rates and the added charges for credit card transactions. As is highlighted in the pricing section of this review, Venmo–like several other instant payment processing services–charge duties on credit card transactions while bank and debit card sourced payments are free.
Consequently, if you opt to utilize Venmo as an option for your organization’s payment solutions, you are restricted to some rules and regulations that constrict the transfer of funds. For example, donations are capped at $2,999.99.
Venmo is a primarily free service. For every transaction between a bank account and a debit card, there is no charge. However, there is a 3% for all transactions that are sourced from credit cards. For authorized businesses and organizations that use Venmo, all transactions are also free. Additionally, transferring any balance from Venmo $0.25 per transfer.
Despite the few setbacks that come along with using Venmo–like the donation limits and some of the controls with payment processing, it works well. However, Venmo should no be a “solve-all” option when it comes to payment options. Venmo, like PayPal or Apple Pay, could be a payment option that augments traditional credit and debit card processing platforms. Either way, it’s cost-effective and could benefit your organization’s flow of donor funds.
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