When should you not use Venmo?

Venmo: Not Your Friendly Neighborhood Marketplace

Venmo. The app that’s become synonymous with splitting the dinner bill, paying your roommate for rent, or sending a quick birthday gift to a friend. It’s undeniably convenient for trusted transactions, but like a beloved neighborhood cafe with limited hours, it’s not meant for everything.

While the ease of Venmo is tempting, the platform explicitly cautions against using it for transactions with strangers. This includes buying or selling goods and services.

Why the strict boundary? Venmo is designed for quick, casual payments between people who already know and trust each other. Unlike platforms specifically built for online marketplaces, Venmo lacks robust buyer/seller protections. This means if a deal with a stranger goes south, you’re left with limited recourse.

Imagine this: You find a “too-good-to-be-true” deal on a used phone from a stranger on social media. They only accept Venmo. You make the payment, but the phone never arrives. Sadly, you’re likely out of luck.

By using Venmo, you agree to their terms of service, which implicitly acknowledge this limitation. Essentially, you’re agreeing to shoulder the risk associated with using the platform outside of its intended purpose.

So, the next time you’re tempted to use Venmo for that online marketplace find, take a moment to reconsider. Are you truly dealing with someone you trust? If not, it’s time to explore safer alternatives designed for those transactions. Your peace of mind and financial well-being depend on it.