Chase vs. Venmo: What are the Differences?

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Learn the differences between two of the most popular apps for splitting the bill: Chase QuickPay and Venmo.

Splitting the bill has never been easier since Venmo was first introduced. The app combines everything Millennials love: social platforms and smartphones. What could be better? It was only a matter of time before big banks jumped on board, but how does one of the biggest names in banking stack up against the comparatively smaller, PayPal-owned digital wallet?

Let’s take a closer look at Chase’s version of peer-to-peer payment in comparison to the original trailblazer, Venmo.

What’s Chase Bank’s Peer-to-Peer Payment Platform?

First, Chase doesn’t make things entirely easy for its users by offering two services with very similar names. There’s Chase Pay, a way to quickly make payments at participating merchants (like Apple Pay), and there’s Chase QuickPay, which is what we’ll be hashing out here. Chase QuickPay is Chase Bank’s response to apps like Venmo. It’s a way to send and receive money between you and your friends, otherwise formally known as a peer-to-peer payment platform.

When talking about Chase QuickPay, the discussion isn’t really about Chase. It’s about Zelle, a peer-to-peer (P2P) payment app, like Venmo, that pairs with participating banks and credit unions.

Zelle partnered up with Chase to create its Chase QuickPay app, whereas Venmo is a stand-alone app that you can download onto your mobile device. Plenty of big banks have buddied up to Zelle to create their own versions of P2P programs like Wells Fargo, U.S. Bank, Citi, Bank of America, PNC and of course, Chase.

The Perks and Limitations of Chase QuickPay with Zelle

It makes sense to sign up for Chase QuickPay if you’re already a Chase customer, especially if you already have their mobile app downloaded to your smartphone. Chase QuickPay does integrate rather beautifully with the mobile app, which makes it nice that you won’t have to download something separately to use this program.

If you’re a Chase customer and you’re interested in using a P2P app, chances are you already have an online account with Chase - that’s half the battle. Signing up requires these credentials and approximately two minutes of your time – it’s easy. While you do have to be a Chase customer to utilize QuickPay, it is free to send and receive money at no charge (that’s right!), other than whatever messaging and data rates might apply with your phone provider.

Using Chase QuickPay is as simple as signing up for it. Sending and receiving money can be done with ease and without charge between you and anyone who is a customer of a bank that participates with Zelle or anyone who downloads the Zelle app.  To send money, all you need is a phone number or even just the email address of the desired recipient.  There are also options for Chase QuickPay settings to establish any desired recurring payments.  Money that is sent from Chase QuickPay will be delivered within minutes if your recipient is using any bank that participates in the Zelle network.

Requesting money is similar. All that’s required to request money from someone is their name and an email address or a phone number, plus the amount you wish to request. Chase QuickPay also has an option that allows the recipient to determine how much money to send.

Chase QuickPay keeps track of everyone who you send or receive money from, that way, you don’t have to worry about keeping up with your contact list or financial activity. There’s no limit to the amount of money you can receive with Chase QuickPay but depending on what type of Chase account you have, there’s a limit to how much you can send.

If you have your Chase QuickPay account linked to a personal Chase checking account or a Chase Liquid card, you can send up to $2,000 in a single transaction. Your daily limit is $2,000 and your monthly sending limit is $16,000.

If you have a Chase checking account for your business, the amount you can send in a single transaction is slightly larger at $5,000, with a daily limit at the same amount, and a monthly cap at $40,000. Finally, a Chase Private Client with a private banking account has the same limits as those with a business checking account, a $5,000 daily limit and for a single transaction and a $40,000 monthly limit.

Banks do have the option of charging fees for their pairing with Zelle, but most of them do not (at least yet).

What’s Venmo All About?

Venmo is a third-party app owned by PayPal and acts as a go-between for sending and receiving money between banks. It works for anyone who has a Venmo account, which you can sign up for via the simple process of downloading the app to your smart phone.

Like Chase QuickPay, Venmo is free to use and download, but you don’t have to be a specific banking customer to access it. Millennials are the main supporters behind Venmo because of the app’s heavy hand in social media.

The Perks and Limitations of Venmo

On Venmo, your account can be connected to Facebook, and the app allows users to comment, share, and even use emojis, which is why so many younger people are drawn to using Venmo over other P2P platforms. The integration with Facebook does make it easier to find recipients because chances are, the friends you’re using Venmo with are likely the same ones you are already connected to on Facebook.

Venmo is frequently used for smaller transactions amongst its users, like to split the bill at a restaurant betwee friends, or to divvy up the cost for that pizza party you threw a few weekends ago. The social media twist puts a friendly face on sending and receiving money, but the dollar amount requested is always private.

There are fees to consider when using Venmo. For payments funded by credit card, Venmo charges a 3% fee per transaction, and for instant transfers, which occur when you cash out from a Venmo balance to your debit card, there is a 1% fee per transaction, but you will receive the transfer within a half an hour.

However, Venmo is completely free to use when you fund your payments via bank account, debit card, or prepaid debit card. It’s when you use a credit card to send money that you will be hit with a fee. The instant transfers do have that 1% fee per transaction, but for regular cash-out transfers to a bank account it is free but delivery will take one to three business days. Essentially, the 1% instant transfer fee is a rush charge.

Limitations include your initial transfer maximum set at $299.99 per week until Venmo verifies your identity more extensively. Once you have gone through the full security prompts and provided your social security number, you can send $2,999.99 per week in one or multiple transactions.

Which to Use?

Both apps have their perks and their time to be used. If you’re out with friends, use Venmo for the fun social experience. If you’re sending or receiving money with recipients with whom you are unfamiliar, use Chase QuickPay for a more formal P2P platform.

The most important thing to keep in mind is what fees these P2P apps charge and how to avoid them, otherwise there are no rules saying you can’t enjoy both!