Understanding Venmo Limits: What Every User Needs to Know

In today’s America, mobile payment platforms have become essential. Taking Venmo (an American mobile payment service founded in 2009 and owned by PayPal) as an example, these payment platforms not only provide the ability to pay for goods and services, but also create social ecosystems around them where participants learn, do business, and share experiences. A bit of statistics: More than 70 million people worldwide use Venmo, and the majority of users are in the US. The average Venmo user sends about $60 per month. In 2021, this payment platform processed transactions totaling $230 billion - a 44% increase from the previous year. So, beyond dollars and cents, mobile payment services shape our social interactions and financial habits.Disclaimer: While we can’t predict the future with certainty, Venmo’s evolution promises exciting developments!

Using Venmo as a reference, for all its advantages, there are also disadvantages. The starting point is the question: how much can you send on Venmo? The answer to this question reveals a number of limitations that prevent users of this platform from both doing business and being socially active. The common denominator for all of Venmo's shortcomings is the transaction limits. Let's talk it about in detail: What are these limits, how do they impact your daily or professional life, and how can you navigate around Venmo’s restrictions?

Navigating Transaction Limits

Have you ever been in a situation where, at the end of a great day, you need to make one final transaction to close a deal; but just as you’re about to hit “send,” you discover that you’ve exceeded the daily money transfer limit? These surprises are all too familiar with Venmo. Since this mobile payment service cards sets limits for sending and receiving money, as well as for purchases using Venmo, knowing these limits is crucial to avoiding unexpected transaction hiccups.

How much money can you send using Venmo?

The first limit users face is on authorization criteria. What is the difference in limits on money transfers between authorized and unauthorized Venmo users?

• Unauthorized users can send up to $999.99 to their bank account per week (depending on security checks).

• Authorized users can transfer up to $19,999.99 to their bank account per week. The transfer amount is limited to $5,000 per transaction.

Now is a great opportunity to clarify that Venmo has various types of transaction limits. Among them, the most common are time-based transfer limits. Here are the basics:

• Daily transfer limit: $4,999.

• Weekly transfer limit: $6,999.

• Monthly limit on transfers: $19,999.

On a separate line are written the limits on the criterion of amount - whether it’s your account balance, transfer amounts, or payments. Here they are:

1. Maximum balance on the account: $6,999.

2. Maximum amount for a single purchase: $2,000; for a Debit Card: $3,000.

3. The maximum number of transactions per day is 30.

4. Venmo Debit Card ATM withdrawal limits are $1,000 per day. The counter resets every day at midnight Central Time (CST).

One often overlooked restriction, especially for newcomers, is that Venmo transactions occur exclusively between this users. For instance, you can’t transfer funds between different payment systems - like Venmo and Payoneer. And here’s the fine print: Venmo’s transaction limits may vary based on account history and other factors.

I haven’t reached my transaction limits. Should I be concerned? Is it possible to increase these limits? Let’s discuss this further.

How to check and increase your limits

Let’s talk about why it’s crucial to keep an eye on your transaction limits in Venmo. The first and most common reason is to avoid daily account lockouts, which occur until midnight but never exceed 24 hours. 

The second reason relates to risk control and financial security. It's about the fact that if you don't have the self-discipline to control your spending, the payment system in question will help you do it. By the way, one of the most common reasons for personal bankruptcy in the USA in the era of consumer culture is the cost of unexpected purchases - Statista. 

And the third reason, though not the least important, is compliance. In this regard, Venmo synchronizes its internal rules with the Bank Secrecy Acts (BSA), anti-money laundering and the USA Patriot Act of 2001  (AML), which prevent transactions that raise doubts about their legitimacy.

Note: Sanctions only apply to the type of transaction you have exceeded, such as purchases or cash withdrawals. 

To avoid being constrained by Venmo’s transaction limits, it’s essential to check them regularly. Here’s how: Open the Venmo app on your mobile device, log in to your account, and navigate to Settings. From there, select ‘Limits and Restrictions’ to find detailed information about your limits. To learn how to set up a Venmo account, check out Irina Tsymbaliuk’s article on the Rates website.

Can I increase my Venmo limits?

Addresses the limitations of payment systems with identity verification. This process involves users providing personal information, including their name, address, and social security number (SSN), to the system. Once successfully verified (a requirement under the Consumer Financial Protection Bureau (CFPB) regulations), users gain access to Venmo’s advanced features.

Regular reviews and increased limits enhance users’ efficiency when using Venmo. The duration of the verification process depends on whether your bank supports the specific feature you’re using. During verification, you’ll need to provide personal information and add your routing and account number. If your bank offers automatic verification, it happens instantly; otherwise, manual verification may take a few hours. If you encounter any issues, Venmo recommends reaching out to your bank’s support team.

Curious about Venmo’s special features? Continue reading.

Hidden features

The philosophy behind Venmo’s creation and development is that it serves as a social platform where users share their financial experiences. The system primarily covers friends and family members, allowing them to split bills and expenses. What truly makes Venmo social is the ability to post your spending activity for friends to comment on. Marketers actively leverage this feature as a form of social proof.

Another hidden feature of this payment system is the ability to buy cryptocurrency. Yes, Venmo allows users to buy, store, and sell cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. And the most appealing feature for rational shoppers is the cashback program: when you use your Venmo card at stores that are part of the Venmo pool, you can earn cashback.

Note: Venmo's extra features are only available to verified users.

Bottom Line

Venmo's massive user base and dynamic features have revolutionized the way users engage financially and socially, allowing for greater engagement and interaction. However, transaction limits can significantly ruin this experience. The solution to this problem is a verified account. Understanding the limits for unverified accounts and completing the verification process ensures that your social interactions align with your financial goals. As a precaution, regularly review the limits, and consider verifying your account. Doing so will unlock additional opportunities, such as purchasing cryptocurrency or earning cashback.

Note: Wondering how much money you can send via Venmo in 10 years? Well, according to financial experts at Rates, if you consistently use the maximum weekly limit (which is $60,000 after verifying your account) for 520 weeks, the total amount sent would be approximately $31.2 million.

So, what does the future hold for Venmo? This digital payment system has already hinted at new services like investing, insurance, and lending. This will require a global presence - the availability of the service outside the US. And driving all of this is artificial intelligence and machine learning, which will personalize and automate Venmo's services. For more insights, check out Forbes’ take on the future.