When you are out of cash to run your business or to handle personal expenses, you might want to consider using an overdraft to assist you in sorting out issues quickly. An overdraft facility allows you to obtain additional funds for a loan up to a specific amount limit using the same account for day-to-day transactions. Let us know Can You Overdraft Venmo?
Overdraft with the Venmo payment app is not possible. However, it has a unique optional feature to reload funds from your linked account. That means it can bring about an overdraft in that linked account if you do not have sufficient funds.
If you seek to know if an overdraft is possible with Venmo, you should stop here and read it carefully because, in this post, we have carefully described all you need to know about overdrafts with Venmo.
What is Venmo?
Venmo is a peer-to-peer network payment app established by Venmo Limited Liability Company in 2009 but currently owned by PayPal since 2012. Venmo is a mobile application usable on most Android phones and iPhones that permits money transactions at the customer’s comfort directly among customers in the United States.
Venmo is a mobile app that facilitates sending money handily among pals, payment of purchased goods and services, or carrying out a payment to an online store without any credit card or moving around with cash.
(Note that before you can use Venmo for an unfamiliar site like payment of goods and aids, whether physically or in an online store, it must be approved by the mobile app). This is to reduce the risk of being defrauded.
It only involves the connection of your Venmo account to the credit or debit card you prefer, and you can use it.
Put it this way, Venmo acts as an intermediary between the bank accounts of two Venmo customers, processing a payment bargain.
Is It Possible To Overdraft Your Venmo?
It is not possible to overdraft your Venmo account. Still, by automatically filling your account (a unique feature in Venmo) from your linked bank account, you have somewhat overdrafted to cover your expenditures. Note also that for each reload, Venmo authorises a 10-dollar charge.
It is important to note that if there are insufficient funds in your bank account for a reload, Venmo will automatically overdraft your bank account if your bank has the overdraft factor. Ensure you always check your bank account to avoid an unexpected overdraft by Venmo.
Does Venmo Charge For Overdraft?
No, Venmo does not give overdraft charges. However, if you have opted for a reload option from your linked bank account, this may cause an overdraft to your bank account.
For example, assuming you want to pay for a package that costs 60 US dollars and there are only 50 US dollars in your account, it will reload from your linked account if you opt for it.
However, in a scenario where you do not have up to 20 dollars (inclusive of the 10 dollars reload fee), Venmo will overdraft your bank account and be charged about 35 US dollars (depending on the financial institution you bank with) for the overdraft charge.
What Is Venmo’s Selling Point?
Although you can not get an overdraft with Venmo, it offers you several other unique services;
• A unique feature helps you pay for recurring fees automatically. For example, weekly and monthly expenses are done instantly.
•.Venmo helps you allot your money in budgeting to avoid overspending.
• Transactions are not restricted to Venmo users only. However, the other party must register to receive money from Venmo.
•, Unlike other payment apps, Venmo does not charge its users for sending or receiving money. Although using a Venmo card for transactions is charged for apparent reasons.
• Venmo customers can process payments even without enough money in their Venmo account because it can reload funds from its linked account.
And so many other attractive qualities.
What Are The Threats To Using Venmo?
As with everything generally in life, what has an attractive side also has a flip side. Venmo faces the major threat of the probability of having your account hacked into and your funds accessed and stolen from you.
Tricksters can even send you seemingly legal sources from which they can gain access to your login details and extort most, if not all, of your money.
Simple Ways to Prevent This Threat
You can use the encryption feature to protect your accounts from hacking, but this is only a primary level of security. Although this makes it harder for anyone to steal your information, there is still a need for you to use a transaction pin on your app, limit your transaction parties to only a very few you trust and try as much as possible not to perform any transaction with an online site using your Venmo mobile application.
You can always use an alternative, like your credit or debit cards.
Lastly, If you suspect your payment details have been altered, ensure you observe your finances every time. An unexplainable decline in your account balance proves that your account must have been hacked.
Conclusion
While spending or performing transactions on the go, always remember that although you cannot overdraft your Venmo, you can overdraft the bank account linked to your Venmo if this feature has been opted for by you, thereby leading to an overdraft charge.
All the more justification for keeping an eye on your account balance to avoid unplanned overdrafts.
Frequently Asked Questions
1. Can I overdraft a Venmo card at an ATM?
No, because the cash from the card is directly from your Venmo account, an overdraft is not possible. Irrespective of the reload feature, Also bear in mind that an ATM withdrawal also incurs about a 2.50 USD charge.
2. Can Venmo be recommended for me to use?
Venmo is a well-known payment app, at least in the whole of the United States of America. However, you have to look into the features and the flip side, just as in the case of other apps, to know if you can use them.
Although Venmo has excellent qualities, like meager fees, you must also consider your vulnerability to fraudsters. If you are not very watchful about protecting your details, this mobile app is not for you.
3. What is the spending threshold for Venmo per day?
Venmo only allows its customers to use a maximum of three hundred thousand dollars per day.
4. Does Venmo lend money to its users?
Yes, Venmo loans out money just like other banking institutions do. However, you must pay a stipulated amount each month to pay for the loan.
You have to note that you have to service the loan as soon as possible, or else Venmo will take restraining action against you by freezing up your account and granting you access to it only when you have completed the payment.
