Venmo has the capability to withdraw money from your bank account. However, it is important to note that Venmo does not withdraw money from your bank account without your explicit authorization.
When you link your bank account to your Venmo account, you give Venmo permission to initiate transfers from your bank account to cover any payments or transactions you make on the platform. This allows you to send money to others or make purchases using your Venmo balance, which can be funded by your bank account.
When you initiate a payment or transaction on Venmo, the platform first checks if you have sufficient funds in your Venmo balance to cover the amount. If you do, the transaction is completed using the funds in your Venmo balance, and no money is withdrawn from your bank account.
However, if you do not have enough funds in your Venmo balance to cover the transaction, Venmo will automatically initiate a transfer from your linked bank account to cover the payment. This transfer is done with your explicit authorization, and you will be notified about the transfer before it takes place.
It is also worth mentioning that Venmo offers multiple funding sources for transactions. Besides your bank account, you can also link a debit card or use the Venmo cash balance to fund your payments. These funding sources work in a similar manner, where funds are either deducted from your balance or withdrawn from the linked account with your authorization.
It is important to keep track of your Venmo transactions and maintain a sufficient balance in your linked bank account to avoid any overdraft fees or insufficient fund charges from your bank. Venmo does not charge any fees for transactions funded by your bank account, debit card, or Venmo cash balance. However, if you choose to use a credit card for payment, Venmo charges a 3% fee to the sender.
To summarize, Venmo can withdraw money from your bank account if you do not have sufficient funds in your Venmo balance to cover a transaction. However, this is only done with your explicit authorization, and Venmo offers multiple funding sources for transactions, including bank accounts, debit cards, and the Venmo cash balance.