Venmo Sucks

[RocketScott]

I had a Christmas dinner party to go to last week and the host asked for payment via Venmo. Figured I might as well set up an account just to have that option in the future

Today I get on to pay my credit card and notice a $10 cash transfer fee. In stead of 'charging' my card for $24.00 plus the 3% fee that I agreed to it went through as a money transfer. So then my card tacks on $10 and starts charging interest right away, no grace period. MFers

Called the card company, they say the problem is with Venmo. Started a dispute with Venmo but I can see that going nowhere. Their website shows some warnings that cards may charge a fee but don't explain that the transaction is run through as a 'money transfer' and not a 'charge' like my receipt from them shows

Found some threads on reddit of people with the same issue. People that had been paying the babysitter the same way as before suddenly getting an extra $50 in fees. Looks like this started back in August. They say it's the card company changing how they classify those transactions. I've paid with a credit card through paypal several times and haven't had this issue so I'm not sure about that. I guess we'll see what Venmo and the credit card company do. When I disputed the money transfer on my CC they immediately gave me a 'permanent credit' and said the case was closed. So now I have to check with the gal that handled the dinner to make sure she doesn't get shorted

[scrid2000]

Honestly that sounds like the credit card company is at fault, not venmo.

[A Null]

I've used venmo for years, paying directly to a separate savings account for years, zero fees. I always pick the slow payment option. Yes, I set up a separate account for venmo only.

[Massivedesign]

This is a Credit Card issue, not Venmo. CC companies started using Venmo transactions as cash/money transfer because people were using it to rack up points / milage. Husbands would use their venmo account tied to an airline to pay their wives thousands of dollars which equals thousands of points/miles. Wife would receive and do the free transfer back to the bank account where they would just pay the card balance with that same $$, rinse and repeat.

[RocketScott]

The CC company said it was Venmo running it through the way they did. Not sure I believe them, I was probably talking to the wrong person after going through the phone tree

This is a Credit Card issue, not Venmo. CC companies started using Venmo transactions as cash/money transfer because people were using it to rack up points / milage. Husbands would use their venmo account tied to an airline to pay their wives thousands of dollars which equals thousands of points/miles. Wife would receive and do the free transfer back to the bank account where they would just pay the card balance with that same $$, rinse and repeat.

I don't see how that would pay off. There's a 3% fee to use the credit card

A $10,000 transfer would be $300. What would 10,000 points get you? $10?

[dreadi]

Fund transfer services that are not supported by my bank(s) are always sketch in my perspective.


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[Old Growth]

Its Kentucky, dangit!

Couldn't ya just tell her you was bringun some frog legs and a bottle of hooch and get the dinner fee waived?

[Massivedesign]

I don't see how that would pay off. There's a 3% fee to use the credit card

A $10,000 transfer would be $300. What would 10,000 points get you? $10?

It's the SUB (Sign Up Bonus) where the value is. Spend $3k and get 70,000 miles and a companion fare. So yhea, you'll eat $90 in fees for what could be $1,400 in travel.