Users who intend to use the Venmo application for lease payments and rents should not use it. Venmo is mostly used by people who are using this to lease the property to tenants or collect rents from the tenants.
This is a business transaction and for this business account of Venmo should be used Business transactions like house rent, lease payments should not be taken via Venmo. The payment charges and tariff for business accounts is more than Personal account
1) Not recommended in Legal Issues
Venmo protects the consumer in legal cases. Suppose you are a landlord and you have leased out property to tenants, in case of any legal issue, Venmo will always support the consumer/tenant.
In order to protect yourself from any business or legal issue, it is best to switch your personal account to a business or merchant account. But that has its own fee structure and cost.
2) There is no way to reverse a mistaken transaction
If the rent or payment is mistakenly sent to the wrong person, it is not the responsibility of Venmo to reach out to that person but the tenant will have to go himself and reach out to that person to get his payment back.
This is one of the common issues with Venmo, most of the time people may send money to the wrong person. In this case, the transaction once proceeded can not be reversed and that is quite an issue with many people. In that case, Venmo doesn’t take the responsibility or there is no process to cancel or withdraw that transfer.
Venmo clearly states on their website that currently there is no method available to cancel the payment once it is transacted. But cases where the other person doesn’t have a VENMO account, in that case, the payment can be transacted.
3) Delayed transactions can result in scams
The delay in the transaction between the actual payment and Notification on Venmo is a window for scammers to rob people of their money. There have been so many scams and cases reported where Venmo users are being scammed online.
The buyer purchase something saying that the payment method will be Venmo. The item is shipped and received and the buyer sends a notification through Venmo that the money has been transferred.
But the actual transfer takes place in a couple of days as USA System doesn’t allow money to be transferred instantly. Due to the large, the money reaches a couple of days later but the apps notify the seller that the money is transacted.
In actuality, there is no bank account linked to that fake account, or the existing account is stolen or empty, which doesn’t allow the transaction to be completed.
4) Money can be lost if the phone is stolen
Venmo is an application that doesn’t facilitate the auto-logout option to the user. Once the user is logged in to the app, the application can be accessed using his phone.
The problem with this is that if the smartphone gets stolen and someone is able to open the main phone lock, there is a chance he has the access to your account and even your passwords. The auto-lock feature is quite helpful in such scenarios.
This exposes the whole account, money, and transaction details of the user to the thief who can use the information to cause more damage. The amount in the wallet can be transferred to anyone using simple hacks.
5) Transaction information is Public and is easily accessible
Money and banking are a matter that is very personal and private. Most of the users don’t want to expose their transaction history and transaction details to the other users even their friends and family.
Another issue with Venmo is that it provides the public information of the transactions. In order to hide the transaction details, one has to limit the privacy settings to private.
Otherwise, all the transaction details are displayed on the wall like social media. One person pays another person, for this reason, this type of update is displayed to the whole public who are in the circle.
Venmo has its advantages but there is a dark side to it like every technology. Beware of these reasons or else use the old conventional methods for transactions. Venmo doesn’t take responsibility for your personal loss due to the above reasons.
If someone has to use Venmo, then he must keep this thing in mind otherwise prefer the old conventional means of transfer of money.