Introduction
Venmo is a popular peer-to-peer payment system that allows you to send and receive money from other users via a mobile app. This payment system has become incredibly popular among millennials and Gen-Zers, and its popularity only seems to be growing. However, as with any payment system, there are limits on how much you can transact on Venmo, leading to some users encountering transaction limits that can be frustrating to navigate when they require larger transactions. This article aims to uncover how much you can Venmo and other limitations to consider.
Understanding Venmo’s Transaction Limits
Venmo has set transaction limits to ensure the safety of users and prevent fraudulent activity. These transaction limits can include both daily, weekly, and monthly limits. The daily transaction limit on Venmo is $4,999.99, while the weekly limit is $6,999.99. In contrast, the monthly limit goes up to $19,999.99. It’s important to note that these limits apply to the total amount of money you send and receive, and exceeding these limits could result in additional fees or even account owner suspension.
To understand Venmo’s transaction limits, you must first check your account’s verification status—there are different limits for verified and unverified Venmo accounts. Users with unverified accounts have transaction limits of $299.99 per week, while verified accounts have much higher transaction limits. If you want to increase your transaction limit, you have to verify your identity by submitting your personal information.To do so, you have to provide Venmo with your name, address, date of birth, social security number or other national identification, and security information.
Venmo vs. PayPal
Venmo and PayPal are both payment systems owned by the same parent company. There are some differences between the two applications that have a significant effect on how much money you can Venmo. Venmo boasts friendlier communication, more social networking features, and a lowered transaction fee structure, but it falls short of PayPal’s scope. Venmo allows for only a few kinds of transactions, such as payment for goods and services, while PayPal has a much wider scope of transactions, including business-related transactions. PayPal has higher limits on the funds that you can send or receive into a PayPal account. Paypal users are limited to a $5000 weekly transfer limit, unlike Venmo, which has a $6999.99 transfer limit.
Pros and Cons of Increasing Your Venmo Limit
Increasing your Venmo limit can have both advantages and disadvantages. The most apparent advantage is that it allows you to handle more significant transactions without facing any limitations. In the case that you need Venmo to send or receive higher amounts of funds (e.g., when catering for an event or business transaction), then this is a crucial benefit. However, increasing your Venmo limit can also lead to a higher risk of identity theft. When you increase your transaction limit, you may be prompted to provide more personal information, which could make it easier for hackers to access your information.
How to Increase Your Venmo Limit without Getting Your Account Frozen
Increasing your Venmo limit is a step-by-step process that requires you to verify your account by providing Venmo with your personal information. To do so, navigate to the “settings tab” and select the “increase limits” option. Here’s a step-by-step guide on how to increase your Venmo limit:
- Log into your Venmo account
- Click “Settings” on the bottom bar of your screen
- Scroll down and choose “Payment Methods”
- Select if you want to add a bank or a card
- Enter the necessary information (routing and account number, card number, or expiration date)
- Wait for Venmo to verify the payment method
- Submit your personal information
Regarding account limits, you should avoid transactions that may trigger suspicion from the Venmo fraud system. For example, if you’ve only ever sent money to close friends and then suddenly decide to send $1000 to someone you’ve never paid before, Venmo’s automated systems could signal an issue and freeze your account. Keep in mind that every time you increase your Venmo limit, you expose yourself to more scams, so never share your personal information with unknown or suspicious people, especially on social media platforms.
Venmo and Taxes
If you intend to receive payments on Venmo regularly, you may need to consider your tax obligations. Venmo users are responsible for reporting any income received through the app. If you make over $20,000 in payments and perform more than 200 transactions in one year, Venmo will report your transactions to the IRS.
It’s important to keep track of your Venmo transactions by downloading and saving copies of your Venmo transaction history regularly. When it’s time to file your taxes, add up the total amount of money you received through Venmo and note it on your taxes. If you need advice on taxation, it can be helpful to speak to a tax professional to avoid any issues regarding your legal obligations.
Top 5 Mistakes to Avoid While Using Venmo’s Payment System
Like any other payment system, Venmo has its fair share of risks. It’s essential to be aware of common mistakes while using Venmo’s payment system. Here are the top 5 mistakes people make while using Venmo and how to avoid them:
- Confusing personal and business expenses– Be mindful of what kind of expenses you are making on Venmo. Your expenses should be well listed, and necessary information should be appropriately labelled.
- Over-sharing personal details – Never share personal information with unknown persons online, including your social security number, Venmo account passwords, and banking information.
- Neglecting transaction limits – Always check Venmo’s transaction limits to avoid costly transaction errors.
- Transfer of funds to fake accounts- When you send money on Venmo, always be sure to check the recipient’s profile, it’s essential to avoid sending money to fake accounts.
- Failing to check for authorized transactions – Always check notifications for unauthorized payment requests and report them immediately.
How to Avoid Scams While Using Venmo
Venmo is always searching for better ways of protecting users from scams, but users also need to take responsibility for their security. Here are some measures to stay safe while trying to use Venmo:
- Verify the reputation of the person you are making transactions with
- Check your bank for suspicious activities
- Enable two-factor authentication for Venmo
- Never reveal any personal information to unknown recipients
- Avoid clicking on suspicious links or buttons in your Venmo account.
Conclusion
Venmo is a safe and easy-to-use payment system that has revolutionized online money transfer. Understanding Venmo’s transaction limits, how to increase them, and how you can transact safely is critical in making the most out of the app. Now that you have all of the information needed, you can use Venmo’s payment system confidently. Always remember to keep your personal information secure, check for suspicious activities, and track your transactions to avoid any nasty surprises come tax time.
