Don’t Link Your Venmo Account to a Credit Card
It’s time to repay a friend for the brunch, the nanny for staying up late, or your roommate for your share of the electricity bill. Using Venmo can make a transaction fast and painless … if you’ve connected the correct account.
A quick reminder comes to you:
If you use a credit card to send money through Venmo , you pay a commission of 3%.
It’s pretty much the same using parent company PayPal’s Venmo to send money to friends and family: 2.9% plus 30 cents if you pay by debit or credit instead of a linked bank account.
You may be rolling your eyes. This is fine. But when was the last time you opened your apps and checked which accounts or cards you linked?
Instant transfer fees accounted for half of Venmo’s $ 200M revenue in 2018, according to an analysis by The Motley Fool .
And if you’re one of three in 10 US adults who say they can go cash-free for a week, you may not be as knowledgeable about these individual transactions as you would like.
Find a minute or five. Check which cards and accounts are associated with your payment applications. Think of it as a financial check.
Someone out there uses Venmo to make monthly payments to their ex-boyfriend’s roommate’s Netflix, forgetting that they once connected their credit card. Don’t let this be you.