So your friend paid you back those concert tickets through Venmo last week. Nice! But now you‘re wondering, okay how do I actually get that money into my real bank account?
I‘ve been there too! Venmo makes peer payments a breeze, but the app doesn‘t make transferring funds out quite as obvious.
Not to worry, I‘ll walk you through everything you need to know in this step-by-step guide. I‘m Mike, a fintech analyst who‘s been using Venmo since 2015. Consider me your Venmo guru! 😎
Here‘s what we‘ll cover:
- A Quick Venmo Overview
- Linking Your Bank Account
- Verifying Your Bank Account
- Transferring Funds from Venmo
- Standard vs. Instant Transfers
- Checking Transfer Status
- Why Venmo Rocks!
Let‘s start with a quick look at how Venmo works its magic!
A Quick Venmo Overview
Venmo began making peer-to-peer payments trendy in 2009 as a PayPal incubator startup. Originally meant to connect with your Facebook friends for easy bill splitting and owed cash, Venmo took off almost immediately.
As early as 2012, Venmo saw $10 million flowing through its app per month. Talk about viral success!!
Venmo‘s payment volume has skyrocketed over 400x from 2012-2022
Today Venmo has over 60 million active user accounts as of 2022. Similar services like CashApp, Google Pay, and PayPal are all playing catch up.
Impressively, over 75% of Venmo users make transactions at least once per week according to Venmo executives. And the app‘s demographic trends towards that social-savvy Millennial/Gen Z crowd in their 20s and 30s.
Recent Venmo updates include:
-
Crypto support – Users can now buy/sell/hold Bitcoin, Ethereum and Litecoin directly in the Venmo app since 2021. Watch out Coinbase 😎😎
-
Business profiles – Brick-and-mortar stores and freelancers can now open Venmo "Business Profiles" to accept payments from their customers. Similar to PayPal.
-
Debit/credit card rewards – A new Venmo debit card and credit card launched in 2022 gives lots of juicy rewards for paying through Venmo.
So in summary, Venmo has evolved from just friends splitting dinner bills to now a full-scale digital payments network for business and crypto too!
But even the most hardcore Venmo devotees (ahem, me) need to actually transfer their funds to a real bank at some point for paying rent and utilities (adulting am I right? 😑).
Let‘s get you there!
Linking Your Bank Account to Venmo
First things first, we need to connect your Venmo account to a bank account:
- Tap the ☰ icon in the top-right of your Venmo app
- Choose "Transfer & Pay"
- Select "Manage Bank Accounts"
- Tap "Link Account" then "Bank"
And you‘ll then have two options for verifying your bank account:
- Instant Verification – Directly log into your bank through Venmo
- Micro-transfers – Validation via small $0.1 deposits
I‘ll expand on each verification method in just a moment. But first…
📝 Hot tip! Have your bank account username, password, account number and routing number handy before starting if you can. Makes things much smoother!
To see if your bank supports instant verification with Venmo, tap "Re-attempt instant verification" on this screen:
If that doesn‘t work, no worries! Just use the manual micro-transfers method.
Now let‘s look at the two verification options…
Verifying Your Bank Account with Venmo
To make sure transfers go smoothly, Venmo utilizes a verification process before allowing funds to be moved.
There are two ways Venmo can verify your bank account:
Instant Verification
Some banks allow Venmo to instantly connect to your account for a smoother experience.
Here‘s how instant verification works:
- Enter your online banking username + password
- Venmo uses third-party Plaid software to read your credentials and connect accounts behind the scenes
- Boom! Your Venmo and bank accounts are now linked instantly
🤔 Concerned about security on this? Don‘t be! Venmo uses 256-bit SSL encryption to securely transfer credential data through Plaid. Top-notch stuff.
According to Plaid‘s documentation, the following banks/credit unions support Venmo instant verification:
| Supported Instant Verification Institutions |
|---|
| Bank of America |
| Capital One |
| Chase |
| Charles Schwab |
| Citi |
| Fidelity |
| PNC |
| TD Bank |
| US Bank |
| Wells Fargo |
| 5,000+ more smaller banks & credit unions |
💡 Pro Tip: If instant verification fails, contact your bank directly to confirm if they partner with Venmo through Plaid. This will help avoid any annoying troubleshooting back and forth!
Now if instant verification didn‘t work, let‘s look at option two…
Micro-Transfers
If your bank does not support instant account verification, Venmo can verify through small deposit amounts instead.
Here is the micro-transfer verification process:
- Manually enter your account and routing number
- Venmo submits two micro-deposits (typically between $0.01 – $0.99) to your bank account via the Automated Clearing House (ACH)
- Check your bank account within 1-3 business days for those small amounts
- Enter the exact deposit amounts in the Venmo app
- Boom! Your account is now verified
Once the amounts are verified, Venmo will automatically withdraw the micro-deposits back out. So you won‘t actually be charged anything.
🤷 Common Question: Why does it take 1-3 days for micro-transfer validation? Venmo utilizes the ACH transfer system that communicates amount data between banks in batches once per day. So it‘s dependent on your individual bank‘s processing times.
Alrighty, got your bank account linked up and verified? Now let‘s talk actually getting funds into your account! 💰💰💰️
Transferring Funds from Venmo to Your Bank
Now we get to the good stuff! Here are the simple steps to move money into your bank:
- Tap the "Transfer" button in Venmo
- Choose your verified bank account
- Enter the amount to transfer
- Select instant or standard transfer
And that‘s it! Venmo will handle the rest. 😎
Here‘s what it looks like in the app:
Let me break down a couple key points on actually moving cash:
- You‘ll choose between instant (fast, fee) or standard (slower, free). I‘ll compare the two next.
- For instant, funds hit your bank in 30 mins or less. Sweet! 💸
- Standard takes the normal 1-3 business days depending on your bank.
Now let‘s compare your options…
Standard vs. Instant: How Fast & Fees?
When pulling funds from your Venmo account to bank, you‘ve got two flavors:
| Transfer Type | Speed | Fee |
|---|---|---|
| Standard | 1-3 biz days | $0 |
| Instant | <30 mins | 1.5% |
Diving Deeper
Let‘s break down some key points on choosing instant or standard:
Standard Transfers
- Takes between 1-3 business days to hit your bank
- Totally free
- Great if you aren‘t in a rush!
Things to note:
- Weekends/bank holidays add delays
- Some banks take 2 days, some 3 days
- Best practice: Transfer early in week
Instant Transfers
- Appear in your bank in under 30 minutes
- 1.5% fee per transfer (min $0.25, max $25)
- Available 24/7/365, no waiting!
Things to note:
- Best for quick access to funds
- All banks supported
- Fees add up for heavy usage
So in summary:
👍 Use standard if you can wait up to 3 days and want fee-free
👍 Use instant if you need the cash immediately despite minor fees
Hope this clears up the crucial difference between standard vs instant transfers from your Venmo balance!
Tracking Your Venmo Transfer Status
Wondering when those funds will hit your connected bank account? Venmo‘s got you covered with easy transfer tracking.
Here‘s where to check the status:
For Standard Transfers
The transfer status appears right in your Venmo transaction feed. You‘ll see "Standard transfer initiated" when it begins, "In progress" during transit, and finally "Complete" upon arrival! Standard takes 1-3 biz days.
For Instant Transfers
Instant transfers start processing in seconds after submitting. You‘ll get an immediate notification from Venmo saying "Your instant transfer has begun." Expect money in your bank under 30 minutes! 🚀
If you encounter issues or delays beyond expected times, tap the transfer amount within Venmo to contact support. They can investigate missing or stalled transfers.
Why I Love Using Venmo!
Beyond easy bank transfers, there‘s lots to love about paying money through Venmo:
Quick Payments 💨
Zipping funds to friends has never been simpler. Venmo‘s streamlined interface makes payments a cinch.
Protection 🛡️
Venmo safeguards your account and data with encryption, fraud monitoring, and optional two-factor authentication.
Support 🆘
Friendly and responsive customer service available 24/7 through in-app chat or email.
Trendsetter 😎
Venmo made peer-to-peer payments cool back in 2009. Today over 60 million users flow millions in daily transactions.
So if you want to make managing owed money and bills with friends easy, Venmo is tried and true.
And you now know like a pro how to get Venmo funds into your real bank account too! 💥💰💥
Let‘s Recap
We covered a ton of ground on getting money out of Venmo and into your personal bank account.
Here are the key steps:
- Add bank account
- Verify via instant or micro-transfers
- Standard or instant transfer of funds
- Check feed for transfer status notifications
And that‘s a wrap! Let me know if any other questions come up on using Venmo. I‘m here to help guide you through anything payments-wallet-bank-transfer related! 😁
More Venmo Resources
Here are helpful next reads on using Venmo:
- Security Best Practices for Venmo Users
- Complete Guide to Venmo Debit & Credit Cards
- How Businesses Accept Venmo Payments
Talk soon,
Mike
