Cash App vs. Venmo: Which payment app is best for you?

Today, payment apps offer the possibility of making financial transactions from the comfort of home without having to stand in long lines at the bank or pay high fees for the banking services. Among the most used applications in the United States are Cash App and Venmo. Although similar, both offer tools that can be useful for different audiences. Learn about their advantages and decide which one is best for you!

Shipping Charges

With Cash App users will not be forced to pay a monthly commission for sending or receiving money, and there are no penalties for periods of inactivity within the application.

Venmo does not charge commission for sending, receiving and withdrawing money. While most users go for the free version, the app offers premium features. In both cases it is required to have at least one debit card.

Application Transfer Fees

Woman making payment through mobile applications — Shutterstock

Cash App charges a 3% commission, but only if the payment is made with a credit card. If the transfer is immediate from the user’s debit account, the commission is 1.5%.

Venmo users have the option to access the free transfer service, although this can take between one and three days. For immediate payment Venmo charges a 1% fee that is anywhere from .25 cents to $10.

Rates for credit card use through the apps

When the user uses a credit card with Cash App they have to pay a 3% commission for the transaction. The use of debit cards or bank accounts linked to the account is recommended, since the use of these does not generate any commission.

With Venmo most of the transactions are made with a debit card. If the user wishes to make a transfer with a credit card, they must pay a commission of 3% on the value of the payment.

Security

Cash App users can be sure that their data will be protected with the highest technology, since the application uses encryption that does not affect whether transactions are made through WiFi or data service.

Venmo is a secure app as users add only the people who are within their contacts, and can configure their account in such a way that no one else has visual access to their financial movements.

Application limits

For transfers Cash App establishes a maximum amount of $250 dollars in a period of one week, while for transfers the limit amount is $1,000 dollars per month.

Venmo users have a set limit of payments sent and received, which amounts to $4,999 dollars. For business accounts, the limit is approximately $6,999.

Merchant Fees

On its website Cash App says that the rates may present abrupt variations, although these are always communicated in advance. Currently commissions for merchants amount to 2.75% for each transaction.

Since 2021 companies that use Venmo as a payment method accept the payment of a commission of between 1.9%, plus the payment of 0.10 cents for each payment made in the business account.

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