If you are contemplating setting up a direct deposit account with Venmo or have already opened one, you may run into the common query-how long does a Venmo direct deposit actually take?
Venmo, the popular peer-to-peer payment app, offers a direct deposit account in association with Bancorp Bank, Venmo’s banking partner.
Direct Deposit works as a superior alternative to cashing paper checks, which is soon becoming a dated way of making payments.
Most online banks like Chime, Varo, and even the new age payment apps like Cash App, Venmo, etc. offer the feature of early payments with direct deposit i.e. up to two days before your actual payday as a staple offering.
Having said that, this early timeline is always accompanied by caveats for valid reasons. So let’s answer the key question.
How long does Venmo direct deposit take?
In a nutshell: Venmo may process the direct deposit up to 2 days before your actual payday. However, in reality, factors like when you set up the direct deposit, when did your employer submit the payroll file, when it is received by Venmo and bank holidays can impact the end processing time.
It is important to understand the words “up to” preceding the “2 days before payday” offer. In reality, the direct deposit processing goes through various stakeholders depending upon how your company has set up the payroll function.
On average, many Venmo users have reported actually receiving the pay 1 or 2 days ahead of their payday. But from time to time, you will get complaints of late deposits.
If you zoom in on the fine print on the Venmo website, here is an elaboration on the disclaimer-
Certain employers and payroll providers may send funds through Direct Deposits 1-2 days in advance of payday. It is up to your employer to submit paycheck information early.
Let’s talk about the various factors that can impact processing time.
Factors impacting the Venmo direct deposit time
The following factors can influence the timing of your Venmo direct deposit credit:
- Is it your first direct deposit– It may take 2 pay cycles before you get your first regular direct deposit
- Timing when payroll file is submitted by your employer– A crucial factor
- Any federal holidays or holidays involved– Can be a reason for a delay
1. Your first direct deposit can be late [Important factor for New Accounts]
If you have recently opened up a direct deposit account with Venmo, it may not work right off the bat for your very next payroll cycle.
In reality, there is a high possibility of lag to get the change updated at your payroll. Also, make sure to double-check the Venmo linked account number and routing number when you share with your employer to avoid any chances of failure.
There is usually a test verification by means of 1 cent deposit done by your employer to confirm the setup with Venmo. That being said, it may not be odd to get the first direct deposit a bit late. You actually get a realistic timeline on the 2nd or 3rd pay cycle.
As per Venmo, it can even take two pay cycles to get the direct deposit working. Although it is usually sooner.
It may take up to two pay cycles for the Direct Deposit feature to take effect.
2. Timing when your payroll file is submitted by your employer is crucial
This is probably the most important factor that may be underrated. For Venmo, the time when they receive the payroll file from your employer is the starting point.
Usually, Venmo will usually process it on the same day if it’s within office hours (unless it’s a bank holiday)
Venmo mentions that on their website:
Venmo will post funds added through Direct Deposit to your account as soon as we receive notice from your employer.
A general payroll process set-up generally goes through a few hands, who require to be coordinated. Payroll can be a stressful job, you don’t have much scope to mess up.
Your company may have outsourced the payroll to a service provider like ADP (that has a great track record) or have the payroll partly in-house. In general, the more hands involved and even frequent turnover of employees could lead to more delays in getting the file released.
Most employers usually initiate the file keeping in mind a 2-day processing time for banks and have standard cut-offs. So if your employer releases the file 2 days early at regular hours, you should see a predictable trend as to the time and day you get the payment.
However, the time when they release the paycheck file can vary even between pay cycles which can cause a few surprises.
In fact, Venmo goes to the extent of saying this
Venmo Support is unable to see incoming or pending transfers. If a Direct Deposit fails to reach your Venmo account for any reason, please contact your employer or payroll provider directly.
3. Any federal holidays or bank holidays involved
If Venmo receives the file on a federal or bank holiday or after hours, this can be a reason for delay.
Employers usually factor in this when they release the payroll file to avoid the possibility.
What Bank is Venmo Direct Deposit
Venmo’s Direct Deposit account is offered through The Bancorp Bank and can be used only for incoming receipts.
For your Direct Deposit form, share the name and address of Venmo’s FDIC-insured partner bank. The details are below:
The Bancorp Bank
6100 S Old Village Pl
Sioux Falls, SD 57108
When does Venmo direct deposit hit
The timing as to when your Venmo direct deposit will be credited depends on when the paycheck file having the requisite details is received by Venmo. This may vary depending upon the company and can even the pay cycles. So there is no standard time as such.
Venmo will attempt to get the funds deposited on the same day they get the file and which can be 1-2 days before your payday on a best-effort basis.
Does Venmo process direct deposits on weekends?
Venmo follows all the federal and bank holidays. So there is a rare chance of being paid on weekends, But the possibility of a deposit going through on weekend cannot be ruled out.
Hope this post was useful to get a full view of how much time can a Venmo direct deposit take. Let me know your personal experience with Venmo in the comments.