Funds held in Venmo accounts are unsecured claims against PayPal unless the account qualifies for FDIC pass-through insurance through specific eligibility triggers including direct deposit, debit card issuance, or remote check capture. Non-qualifying balances are pooled and invested in liquid assets per state money transmitter laws, and users earn no interest.
This analysis describes what Venmo's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
Under this provision, users whose accounts do not qualify for FDIC pass-through insurance hold funds as unsecured creditors of PayPal, Inc., without deposit insurance protection. Qualifying conditions include having an active Venmo Mastercard debit card, using direct deposit, or cashing a check through Venmo; and even for qualifying accounts, FDIC coverage is contingent on recordkeeping compliance.
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These Terms contain the entire agreement between you and OpenAI regarding the Services and, other than any Service-specific terms, supersedes any prior or contemporaneous agreements between you and OpenAI.
If any provisions from this Policy are in conflict with any applicable laws, such provisions will be replaced by provisions of the same purport that reflects the original intention of the provision, to the extent permissible under the applicable laws.
"we will place your U.S. dollar Venmo funds in one or more Program Banks, where they will, subject to certain conditions, be eligible for pass-through FDIC insurance up to applicable limits.Excerpt from Venmo's User Agreement
(1) REGULATORY LANDSCAPE: FDIC pass-through insurance for custodial accounts is governed by FDIC regulations on deposit insurance for deposits held by intermediaries.
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Funds held in Venmo accounts are unsecured claims against PayPal unless the account qualifies for FDIC pass-through insurance through specific eligibility triggers including direct deposit, debit card issuance, or remote check capture. Non-qualifying balances are pooled and invested in liquid assets per state money transmitter laws, and users earn no interest.
Under this provision, users whose accounts do not qualify for FDIC pass-through insurance hold funds as unsecured creditors of PayPal, Inc., without deposit insurance protection. Qualifying conditions include having an active Venmo Mastercard debit card, using direct deposit, or cashing a check through Venmo; and even for qualifying accounts, FDIC coverage is contingent on recordkeeping compliance.
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