Home Financial Transfer Chime vs Venmo Comparison: Which is Better?
Financial Transfer

Chime vs Venmo Comparison: Which is Better?

Chime vs Venmo

This post is a tug of war featuring Chime vs Venmo to help you determine which is better for your financial needs. But first, know that Chime and Venmo are both prominent, however, they are built differently for different audiences.

Chime primarily focuses on online banking services. You get to experience an AI-powered CRM, IDX websites, tools like Dynamic CMA, and automated social media marketing. On the other hand, Venmo is more geared towards individuals or small to mid-sized businesses with simple payment transfers in mind.

Indeed, there are distinctions, so choosing between Chime and Venmo depends on “your specific financial requirements”.

You have come to the right place; a place where I have developed this comprehensive guide to help you make a guided decision. But understand one thing; I will never recommend one over the other, instead, I will let you know what you need to know to determine which is best for you.

Chime vs Venmo Comparison

Chime vs Venmo

If you did a simple forum search using a platform like Reddit, you would find different conflicting opinions. People will not particularly say “Chime” or “Venmo”. Also, there will be a bit of bias, especially if one recently faced difficulties on one of the platforms. Now, that is not the kind of people you want to suggest for you the best financial solution.

Sometimes, people don’t exactly give a reason you need to sign up on one and not the other.

The comparison of Chime vs Venmo is not really an elephant fight. That’s because both platforms are quite distinct in what they offer. To ensure a proper review, we will be considering the various relevant features each mobile payment app offers.

But first, let’s make a quick comparison before we break into the real thing.

What Chime is Like

  1. Audience
    • Businesses and companies seeking to grow and manage their savings automatically.
    • Focus on business banking account solutions.
  2. Support
    • Business Hours
    • 24/7 Live Support
    • Online
  3. API
    • Offers API
  4. Pricing
    • No specific information available.
    • They offer a free version and a free trial.
  5. Reviews/Ratings
    • Overall 5.0/5
    • Ease 5.0/5
    • Features 5.0/5
    • Design 5.0/5
    • Support 5.0/5
  6. Training
    • Documentation
    • Webinars
    • Live Online
    • In Person.
  7. Company Information
  8. Categories
    • Business Bank Accounts
    • Virtual Credit/Debit Cards

What Venmo is Like (Owned by PayPal)

  1. Audience
    • Individuals or small to mid-sized businesses.
    • A simple payment transfer solution.
  2. Support
    • Business Hours
    • 24/7 Live Support
    • Online
  3. API
    • Offers API
  4. Pricing
    • Free
  5. Reviews/Ratings
    • Overall 4.4/5
    • Ease 4.9/5
    • Features 4.4/5
    • Design 4.7/5
    • Support 4.2/5
  6. Training
    • Documentation
    • Webinars
    • Live Online
    • In Person
  7. Company Information
    • Owned by PayPal
    • Founded in 1998
    • Based in the United States
    • Venmo Website
  8. Categories
    • Digital Wallets
    • Mobile Payment
    • Payment Processing

Let’s Play Around with Some Insights

1. Target Audience

While Chime seems to be more focused on businesses and companies, Venmo targets individuals and small to mid-sized businesses.

2. Ratings

Chime has slightly higher overall ratings compared to Venmo. However, Venmo excels in ease of use with a rating of 4.9/5.

3. Features

Both platforms offer APIs, so there is potential for integration with other software or platforms (if necessary for your personal or business needs).

Is Chime and Venmo the Same?

Chime is a financial technology company founded in 2013 by Chris Britt and Ryan King. This payment platform was established to provide a user-friendly platform for banking without traditional fees. It offers services like no-fee checking and savings accounts, early direct deposits, and automatic savings features.

On the other hand, Venmo was founded in 2009 by Andrew Kortina and Iqram Magdon-Ismail. It was later acquired by Braintree in 2012 and then by PayPal in 2013. Venmo was created as a mobile payment service to make it easier for friends to share expenses and send money to each other.

So, to answer the question, no Chime and Venmo are not the same. That’s the purpose of this review battle between Chime vs Venmo to help you determine which might be most suitable for your financial needs.

Chime Overview

For some people, Chime is a bank. No, Chime is not a bank but a financial technology company. Its online banking services are possible through partners including Bancorp Bank, N.A., and Stride Bank, N.A., both of which are FDIC members.

Chime is headquartered in San Francisco and is home to 14.5 million customers as of 2023.

Let’s get a bit into its features. Chime offers a checking account with no monthly maintenance fee or minimum balance requirements. You get paid up to 2 days early with direct deposit, a fee-free overdraft of up to $200 (with certain conditions), automated savings features, fee-free money transfers (with a limit), and access to over 60,000 fee-free ATMs nationwide.

If you prefer a high-yield savings account, then you can get one and enjoy a 2.00% annual percentage yield (APY). No monthly fees, no minimum balance requirements, and no cap on interest earnings. Along these freebies is Chime’s Round Ups, where transactions are rounded up to the nearest dollar and the difference is transferred to your savings account.

If you prefer to bank like me, you will need a credit builder. And Chime has a credit builder Visa card. You don’t have to complete any credit check but it comes with certain conditions for eligibility.

Alongside is the Chime mobile app which supports both Android and iOS. You also get features such as daily account balance notifications, transaction alerts, disabling transactions if the card is lost, and more.

If you would like to know the financial apps similar to Chime, then they include:

  • Ally
  • Varo
  • SoFi

Venmo Overview

I have already mentioned severally that Venmo is owned by PayPal. One thing that comes to mind, is the fact that you can be sure that Venmo already has the experience to make a better payment app.

As of 2023, Venmo had more than 85.1 million users and is available only in the U.S.

Venmo is primarily for sending and receiving money without cash. Examples include splitting dinner tabs, paying for shared taxi rides, or sending rent to roommates.

You can also make purchases with Venmo’s Mastercard debit card, pay for purchases through authorized Venmo partners, use in-store QR codes for purchases, cash certain checks, set up direct deposits, and even receive alerts and trade four types of cryptocurrencies (Bitcoin, Ethereum, Litecoin, and Bitcoin Cash).

Like Chime, Venmo app is available on both iOS and Android devices. Also, you need to be in the US to use Venmo and be at least 18 years old in most cases.

While Venmo will not charge monthly or annual fees and offers many basic services for free, it does have fees for certain premium features and services. For instance, there’s a 3% fee for sending money using a credit card, fees for faster check-cashing features, and fees for instantly transferring money to linked accounts or cards.

You also get two transfer options. Standard transfers from Venmo to a linked U.S. bank account typically take 1 to 3 business days. Instant transfers, which come with a fee, can be done within 30 minutes.

In October 2020, Venmo introduced a QR code-equipped Visa credit card that offers 3% cash back on purchases. This cash back supports cryptocurrency purchases without a fee.

Pros and Cons of Chime

Remember, this is a review of the battle between Chime vs Venmo. In this section, we will get to know why Chime may or may not be worth it.

Pros of Chime

  1. No Hidden Fees
    • Chime is known for its transparency.
    • It does not charge monthly maintenance fees, overdraft fees, or foreign transaction fees.
  2. Automatic Savings
    • Chime offers features that help users save money automatically.
    • For instance, every time a user makes a purchase, Chime can round up the amount to the nearest dollar and transfer the difference to a savings account.
  3. Early Direct Deposit
    • Chime users can receive their paychecks up to 2 days.
    • Faster than the traditional banking system through direct deposit.
  4. Real-time Transaction Alerts
    • Users receive instant notifications for their account activities.
    • Helps you to keep track of their spending.
  5. No Minimum Balance Requirement
    • Chime doesn’t require you to maintain a minimum balance in your accounts.
  6. Free ATM Withdrawals:
    • Network of fee-free ATMs.
    • Works for all its users.
  7. Attractive high yield
    • Chime’s savings account offers an attractive high yield of 0.50% APY.
    • Helps you to grow your savings faster.
  8. Free spam protection
    • Offers free spam protection for text messages, phone calls, and emails.
    • You can feel confident that your money is safe from fraudulent activity.
  9. FDIC insured
    • Your money is safe with Chime because their accounts are FDIC insured.
    • This means that if Chime Bank were to close, your deposits would still be protected.
    • Chime uses FDIC pass-through insurance, ensuring that each depositor is insured for at least $250,000, including both the principal amount and any interest earned.

Cons of Chime

  1. Live Support
    • You can speak to live customer service at Chime any time you need help. Chime has live agents available 24/7 to chat directly through the Chime app or call +1 (844) 244-6363.
    • There is a question of consistency in the quality and speed of support.
    • Live support is sometimes slow.
  2. ATM Charges
    • There’s a $2.50 fee every time you make a withdrawal from an out-of-network ATM.
    • You can withdraw up to $515 per day via ATM.
    • Charges may apply if you use an ATM in a currency other than US Dollars.
  3. Spending Limits
    • Fees incurred, ATM and over-the-counter cash withdrawals, funds withdrawn at a POS, and purchases are all subject to a daily $2,500 maximum amount using your card.
  4. Geographical Limitations
    • To open a Chime account, you must be a citizen or a permanent resident of the 50 United States and Washington, DC.
    • You can use your Chime card internationally wherever Visa is accepted at no additional cost, but the primary service is limited to the US.

Now, let’s move on to the pros and cons of using Venmo.

Pros and Cons of Venmo

Having overviewed Venmo as a payment app, you also need to know its pros and cons to help your decision-making. In the initial section, I covered the pros and cons of Chime. So, to ensure a balance in the Chime vs Venmo review, the below section discusses the upsides and downsides of Venmo app.

Pros of Venmo

  1. Ease of Transactions
    •  You can pay money to family and friends.
    • Receive money from family and friends.
  2. Direct Deposits
    • Users can set up direct deposits to their Venmo balance.
    • Venmo allows users to receive direct deposits up to 2 days early.
  3. Mobile Check Deposits
    • Users can set up mobile check deposits into their Venmo balance.
  4. FDIC Insured
    • Money from direct deposits and check deposits is FDIC insured, ensuring safety.
  5. Venmo Debit and Credit Card
    • Users can get a Venmo debit card and a Venmo credit card.
    • Venmo Debit Card is tied to your Venmo balance.
    • Venmo debit card has no annual fee.
    • Venmo debit card offers cash back at select stores.
  6. Cash Back
    • Users can earn cash back on certain purchases with their debit or credit card.
  7. No Fee Service
    • Venmo does not charge monthly service fees.
    • There’s no fee for transferring money from your Venmo balance to a bank account.
    • No fee for transferring money from Venmo balance to a bank account.
  8. Cryptocurrencies
    • Purchase options include Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
    • Buy in $1 increments.
    • Zero fees for cryptocurrency purchases.
    • Offers users short content on crypto basics, explaining how it works.
  9. Social Features
    • Combines elements of social networks with payment features.
    • Allows likes, comments, and messages attached to each payment or cryptocurrency purchase.
  10. Mobile Check Deposits
    • Set up mobile check deposits into Venmo balance.

Cons of Venmo

As we did for Chime, this section discusses the cons of using Venmo.

  1. Venmo App Costs and Features
    • Basic Usage
      • The Venmo app is free.
      • You can send and receive money with Venmo free of charge.
    • Premium Features
      • Sending Money on Credit:
        • Credit card payments have a 3% fee.
        • Avoid the fee by using a debit card, bank account, or Venmo balance.
      • Fast Withdrawal to Bank Account
        • Instant transfers have a 1.75% fee.
        • Fees range from a $0.25 minimum to a $25 maximum.
        • Opt for a regular withdrawal to avoid fees, which takes 1-3 business days.
      • Cryptocurrency Transactions
        • Fees apply for buying and selling cryptocurrency within the app.
        • Fees start at less than $0.50 for small purchases and increase based on the amount.
  2. Privacy Concerns
    • Default Settings
      • Payments are public by default for non-teen accounts.
      • Public payments display usernames and attached messages.
    • Changing Settings
      • Users can adjust settings to make payments visible only to friends or completely private.
      • Some users may not be aware their payments are public, leading to potential privacy concerns.
  3. Payment Limitations
    • Cancellation
      • Payments cannot be canceled once made.
      • Recipients receive money immediately.
      • To retrieve a payment, users must request the recipient to return it or seek Venmo’s support, which has conditions.
    • International Transactions
      • Venmo does not support international payments.
      • Users must reside in the U.S. and have a U.S. cellphone number.
      • Only U.S. bank accounts can receive transfers from Venmo.
      • The Venmo app is accessible only within the U.S.
  4. Popularity and Scammers
    • Advantage
      • Venmo’s popularity means many acquaintances likely use the app, facilitating easy transactions.
    • Disadvantage
      • The platform’s popularity attracts scammers, posing potential risks to users.
  5. Not FDIC Insured
    • Funds held in a Venmo account are not insured by the Federal Deposit Insurance Corporation (FDIC).
    • Users could potentially lose their money if Venmo faces financial difficulties.
  6. Potential Delays
    • Transferring money from Venmo to a bank account can sometimes take 1-3 business days.
  7. Limited International Use
    • Venmo is primarily available for users within the United States.
    • This limits its utility for international transactions.

Similarities Between Chime and Venmo

While we have discussed Chime vs Venmo based on individual pros and cons, you should also know some of their similarities.

1. Availability

Both Chime and Venmo are available on various platforms including Windows, Mac, Linux, SaaS/Web, iPhone, iPad, Android, and Chromebook.

2. Audience

Chime is targeted towards businesses and companies seeking to grow and manage their savings automatically through a business banking account solution.

On the other hand, Venmo targets individuals or small to mid-sized businesses looking for a simple payment transfer solution.

3. Support

Both Chime and Venmo offer support during business hours, 24/7 live support, and online assistance.

4. API

Both platforms offer API integration, allowing developers to integrate Chime and Venmo functionalities into their applications or platforms for businesses.

5. Categories

Both platforms fall under the financial domain. Venmo is categorized under “Online Payments,” “Payment Platform,” and “Recurring Billing.” However, Chime is categorized under “Finance,” “Project Management,” and “Shopping.”

6. Debit Card

Both Venmo and Chime offer debit cards that allow you to spend money from your respective accounts. Both cards can be used for online and in-store purchases anywhere their respective networks (Mastercard for Venmo and Visa for Chime) are accepted.

Neither card charges monthly maintenance or service fees.

Also, both cards provide users with ATM access. While Venmo offers fee-free withdrawals at MoneyPass ATMs, Chime offers fee-free withdrawals at over 60,000 ATMs.

Both Venmo and Chime offer direct deposit features, allowing users to receive their paychecks directly into their accounts.

While the mechanisms might differ, both cards have features to prevent overdraft fees. Venmo doesn’t mention overdrafts, while Chime has a feature called “SpotMe” to cover small overdrafts without fees.

Venmo and Chime cards are issued in partnership with banks. The Venmo card is issued by The Bancorp Bank, N.A., while the Chime card can be issued by either The Bancorp Bank, N.A. or Stride Bank, N.A.

Both cards offer features that allow users to save or earn money. Venmo offers cashback on certain purchases, while Chime has features like “Round Ups” and “Save When I Get Paid” to help users save money.

Note*

While Venmo accepts prepaid cards, Chime does not accept prepaid cards.

7. Virtual Card

  1. Both are designed for enhanced online transaction security.
  2. They mask the real credit card/account details during online purchases.
  3. Both offer features to manage money and track transactions.
  4. Neither directly impacts the credit score based on usage.

Payment Situation on Venmo

1. Payments to Existing Venmo Accounts

Once a payment is sent to an existing Venmo account, it cannot be canceled. The funds are immediately available to the recipient.

2. Issue with Sent Payment

If you mistakenly sent a payment to someone you know, the recipient should send you a payment for the same amount as a return.

Venmo Support can only reverse a payment if the recipient gives explicit permission, their account is in good standing, and they still have the funds available in their Venmo account.

Venmo Support cannot reverse a payment at the sender’s request.

3. Payment to Unregistered Email or Phone

If you sent a payment to a phone number or email address that hasn’t been registered with Venmo, you can take back the payment in the “Pending” section of the Venmo app.

4. Payment from Unknown Person

If you receive a payment from someone you don’t know, you should be cautious. Payments on Venmo can’t be canceled once they’ve reached your Venmo account.

If someone you don’t recognize sends you money, you should learn what to do if you receive a payment from a stranger.

Chime Payment Situation

1. Sending Money to Chime Members

Chime offers a “Pay Anyone” feature that allows you to send money instantly and for free to other Chime members. To use this feature, you need to log into the Chime mobile app, select the ‘Move Money’ tab, then ‘Pay Anyone’. You can enter the receiver’s name, phone number, or email, or select them from your contacts.

2. Depositing Money

Chime supports direct deposit, mobile check deposits, and electronic transfers from other institutions.

They also allow cash deposits at over 75,000 retail locations such as Walgreens, Walmart, CVS, and 7-Eleven. However, some retailers may charge a fee for cash deposits.

3. Chime’s ATM Network

Chime has a network of over 60,000 fee-free ATMs for its members. Transactions can be made fee-free at any Moneypass ATM in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

4. Sending Paper Checks

While Chime doesn’t issue personal checkbooks, they offer the Chime Checkbook feature to assist members in situations where a check is required.

5. Mobile Check Deposit

Chime determines eligibility for the Mobile Check Deposit feature based on various factors, including direct deposit history and amounts.

For instance, Chime currently offers mobile check deposits to members who receive a qualifying direct deposit of $1.00 or more.

6. Unrecognized Transactions

If you don’t recognize a transaction in your Chime account, you can temporarily block your card using the Chime mobile app. You can also contact Chime’s customer service for assistance.

Meanwhile, I have discussed how you can use Chime with Venmo.

Conclusion—Which is Better Venmo or Chime?

And with this, we’ve come to the end of the review “Venmo vs Chime”. The question remains “Which is better?” The most reasonable answer is that it depends on your financial requirements. Just see the features that most appeal to your daily transaction needs and sign up for that.

The truth is that your experience will always differ from that of other people. So, while Mr. A will consider a certain feature irrelevant, Mr. B wouldn’t say the same.

Read alsoChime Vs Cash App Comparison [Insider Reveals Best]

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Written by
Jim Marous

Jim Marous is a Top 5 Retail Banking Influencer, Global Speaker, Podcast Host and Co-Publisher at The Financial Brand. I am a co-author here at Blueopes Finance, writing on a lot of topics regarding payments, banking software, cards, and investing.

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