You’re having dinner with friends and realize you forgot your wallet. No longer do your friends have to cover wondering if you’re good for the money. With the free money-sharing app, Venmo (send money make purchases), you can send a digital transaction more simple than sending an email. Viola! Your friend has your money in their bank with a digital receipt of payment. Crisis averted. You feel safe, because Venmo promises your personal and financial information is kept private with encryption. But is Venmo safe enough for teens to use? Today’s GKIS Sensible Guide answers parent questions.
What is Venmo?
Venmo is a free money-sharing application. Users can immediately transfer money from either their Venmo account, bank account, or debit card. Users can connect with other Venmo users by using the search function. With Venmo, you can pay for items automatically or transfer money between friends without an additional charge. Instead of cash, teenagers can be found saying, “I’ll Venmo you.”
Venmo was created by two college students in 2009, in the hopes to create a better way of paying each other back. It started as a text message transferring system; which, has revolutionized to a new type of social network. According to Fast Company, it is estimated that there are about 7 million active users every month. The also reported that last year the app transferred almost a total of $18 Million dollars between users.
What are Venmo’s popular features?
Venmo is super popular as a convenient, quick and easy way to wire somebody money. You can request for somebody else to send you money or you can easily pay somebody back. Your account will use the money you have received in Venmo or link to your bank account or debit card quickly. Venmo does have the option to connect to Facebook but it will only take your contact list.
How to use Venmo?
You’re on the Venmo app and you press the three lines on the left hand side. You’re brought to your account options but what do all of these tabs mean?
- Home: This is where you can see your friend’s interactions with the app. When on the home tab there is three buttons at the top.
- One is an emoji of a world, which will bring you to a list of anyone in the world’s latest interaction with Venmo.
- The second option shows two heads, this is where you can see the money you’re friends have been transferring between each other. On this section, it used to show how much people were sending but for security reasons it now just shows that you transferred but with no money total.
- The last button is a picture of single–headed emoji. This shows all of your past transactions and also when you took out money from your bank and when you deposited money back into your bank.
- Search People: This is where you can search through your friends for the appropriate person you want to send or receive money from. You have the option to connect to your Facebook so it can inherit your contact list.
- Scan Code: Your coworker brings you coffee and asks you to pay them back. You don’t have cash and you’re not friends on Venmo. Instead of searching their name, this tool gives you the option to scan the user’s unique barcode. Both of you have to have the application open at the same time for this to work.
- Invite Friends: Your friend isn’t on Venmo? You can input their name, phone number, or email to invite them to join the app.
- Transfer Balance: This is where you go when someone has sent you the money but now you need to get it into your bank. It has the option to transfer the money to your previously entered account or to enter a new bank account.
- This is also where you will see Venmo’s new interaction to instantly transfer money to your Bank in seconds. This new feature does cost $.25. The standard option (free) is still available but this option takes one to three business days to transfer to your bank account.
- Purchases: You can now use Venmo to pay in other apps and on the mobile web with select PayPal merchants.
- Venmo does put in their FAQ webpage that if a person purchases a good or service on the internet using Venmo, they will not offer protection. The transactions are potentially high risk and you may lose funds.
- Notifications: This is where it will show if you have any pending requests for money or if anyone is requesting money from you.
- Incomplete: This will show outstanding requests or payments. There will not disappear until the other user pays your or you pay them.
- Get Hep: This brings you to three options and those being “Browse Ours FAQs”, “Contact Us”, or “My Support Tickets” (for any IT help).
How to make a payment or request a payment?
- Click on the button in the top right hand corner to pull up your contact page.
- Select the friend you want to send money to or request money from. You can also type in the name.
- Type the amount for payment.
- Add a comment about what the payment is for using words, emojis, or a combination of both (Venmo will not let you skip this step).
- Select pay or request money. If you pay, the money is transferred to their account. If you request, your friend receives an email or text and an app notification saying that you requested money.
What are the privacy options?
When you make a payment or receive money from someone it automatically gets added to a live feed. This feed is where you can see your friends and families latest transactions. It will not show the amount transferred but it will show the reason (you can leave the reason blank). It’s common for people to not use words in their description but instead emoji’s.
It also asks where you want your contacts to come from. You can get contacts imported from your Facebook contacts or your phone contacts or both. You have the option to turn both options off and only have friends you add by hand.
What are the risks for use?
A new trend is for sites like Craigslist, Instagram, or Facebook to ask people to buy goods and services and to pay with their Venmo accounts. The company highly discourages this type of transaction but it happens daily. Buying a pair of leggings off an Instagram promoter seems innocent enough, but the real problem is now it’s even easier to buy illegal substances.
Rachael Ferguson did a research project in which she used an application called Whisper, a messaging app that allows users to send and receive messages anonymously, and she had two drug dealers agree to talk to her about their social media influence on the drug market. They explained how easy it is to find drugs on apps like Instagram or Twitter, just buy searching up relevant hashtags. An example of those would be #Kush4Sale or #OGKUSH. If you comment on these posts it’s more likely you’ll caught, so there in underground etiquette of messaging the hastagger privately (Ferguson.)
Besides using social media to buy drugs, there are plenty of other goods and services that can be bought through these apps and that are requesting a payment using Venmo. One man was selling a car on Craigslist, the purchaser claimed he could only pay if he used Venmo. The car dealer watched the other person transfer money and he saw the money come into his bank account. Happily, he signed the car over to the purchaser. 12 hours later, the dealer of the car received an email from Venmo saying the payment had been stopped (Chatman.)
What to watch out for on Venmo.
Users can remain secretive about the actual reason for money transfer. Unless you set your page to private, the public can see your transactions and reason for sending. In the privacy section of a Venmo account, there is the option to set all past transactions to private.
When I asked my friends why they or their other friends are using Venmo, they majority reported that they used it for paying rent, bills, dinner, coffee, drugs and when they were underage they can transfer money to someone 21+ to buy alcohol. This is where the emoji’s come in handy when putting in a description for your money transfer.
Emoji’s and what they mean on Venmo:
- Wine/Beer/Cocktail: Alcohol/ booze
- Dancing/Celebrate: Party/bar
- House: Rent or bills
- Car: Uber
- Leaf: Marijuana
- Needle: Drugs
And there numerous food emoji’s used to indicate that they are paying the person back for food. Fun fact: the pizza emoji is the most popular emoji in Venmo transaction messages (Wener-Fligner.)
What are the protection features?
Venmo’s security page outlines how it will protect you financial information, your account, storage and how it will keep you safe in the long run.
Venmo is an easy app to use, but when the user is a child or a teen, parents should consider discussing with them the risks and how to stay safe. Some things to think about:
- Decide if it is the right time for your child to have their own personal bank account or if they are responsible enough to have a Venmo account connected to your bank account.
- Discuss with the child when it’s appropriate to send money and when it is not. Set limits and don’t let them send or receive money from strangers.
- Consider monitoring their transactions. One way to do this is by making a contract demonstrating their Venmo rules and regulations. Establish an agreement that you can have access to their account anytime.
- Create a list of the people they are allowed to transfer money to. If they want to add a new person, they must let you know first. You have the right to remove any person at anytime.
When using a money sharing app, the child should be prepared to be honest and responsible. As parents, instead of banning certain apps all together, make sure your children know what your rules are! Keep a copy of their username and password so you can easily monitor their account. Also, remember this application is not only for your kids! Venmo is super helpful in limiting your cash interactions and providing a safe way to share money with your friends and family.
Work Cited
The Digital Underground: Here’s How You Can Buy Drugs on Social Media, Right Now by Rachel Ferguson
Warning: Venmo Payment from Strangers Can Cost You by Samantha Chatman
The Emoji of Venmo by Zach Wener- Fligner
Why Venmo Is So Popular With Millennials by Matthew Cochrane
Photo Credits
Venmo by Tessa Singer
