Beware, Venmo Payouts Are Not As Instant As It Looks
The popular Venmo payment app is a very convenient way to transfer and request funds between friends, colleagues, neighbors and whoever you want. It claims to send these payments instantly, which makes it great for splitting checks or paying rent, but it’s not as instantaneous as the app makes you think.
Indeed, Venmo is more like an electronic check, where there is a promise to pay, but that is all until it is confirmed by your bank or the bank of the other party. This means that the transfer of funds may take up to the next business day . Venmo does not disclose this important detail in its transactions because it usually sends a verification text message that someone has paid you, and vice versa. A day or two is not a problem between friends, but it’s worth keeping in mind if you’re sending money via Venmo on a tight schedule or if the day is too long to wait.
As Time notes, as with any other service, there is a scam, in which case people use Venmo to pay for the purchase of goods, receive them immediately, and then cancel. An unsuspecting person, such as a seller on Craigslist, will be left with no money, no merchandise, and no one will be wiser until the money arrives. So if you use Venmo, do it with someone you trust. For all other transactions, use cash or Paypal.
The Scary Thing You Don’t Understand About Venmo | Time is money
Update: Venmo payments are instant only if the sender’s existing Venmo account balance can pay the entire requested amount.