How Does Varo To Anyone Work: A Step-By-Step Explanation

Varo Bank is an American neobank headquartered in Salt Lake City, Utah. It's a digital-first bank, meaning it operates primarily through its mobile app and online channels, without physical branches.

Varo made history by being the first fintech company to receive a national bank charter from the Office of the Comptroller of the Currency (OCC) in the United States. This means it operates as a fully regulated bank, offering traditional banking services with federal deposit insurance (FDIC-insured up to $250,000).

A core principle of Varo is to avoid hidden fees, such as overdraft fees, ATM fees (for in-network ATMs), or minimum balance fees. Varo aims to serve many Americans who may be underserved or overcharged by traditional banking systems.

One key feature offered by Varo bank is the "Varo to Anyone" feature, which allows you to send money to any US citizen having an eligible debit card, even if that person doesn't have a Varo account.

In this article, we will be looking at the "Varo To Anyone" feature and how it works.

Varo To Anyone:

The "Varo to Anyone" feature is a powerful and convenient peer-to-peer (P2P) payment service offered by Varo Bank, designed to make sending and receiving money incredibly easy, even if the recipient doesn't have a Varo account.

"Varo to Anyone" allows Varo Bank customers to send money directly from their Varo checking account to virtually anyone else, using just their phone number or email address. The recipient doesn't need a Varo account to receive the money, although they will need to link a valid U.S. bank account or an eligible debit card.

Essentially, it's Varo's version of services like Zelle, Venmo, or PayPal, but integrated directly into your Varo bank account.

Key Benefits And Features Of "Varo to Anyone":

The "Varo to Anyone" service has the following benefits and features:

Send Money Instantly: Transfers are often instant or completed within minutes, making it ideal for quick payments.
No Fees: Varo does not charge any fees for sending or receiving money using this feature.
Simple and Convenient: You only need the recipient's U.S. mobile phone number or email address. You don't need their bank account details.
Security: Transactions are secure and processed directly through your Varo account.
Recipient Flexibility: The recipient can choose to receive the money into their Varo account (if they have one) or into any other eligible U.S. bank account.
Avoids Sharing Account Numbers: You don't have to share your bank account or routing number with the recipient, enhancing privacy.

How Does Varo To Anyone Work?

As seen earlier, "Varo to Anyone" is a feature within the Varo Bank mobile app that facilitates instant, fee-free money transfers from a Varo customer to almost anyone with a U.S. debit card, regardless of whether the recipient has a Varo account.

Below is a breakdown of how it works for both the sender and the recipient:

a. For the Sender (a Varo Bank Customer):

Here is what to do:

Open the Varo App: Log in to your Varo Bank mobile app.
Navigate to Transfers/Payments: Look for an option like "Move Money," "Pay & Transfer," or "Send Money." The exact wording might vary slightly.
Select "Varo to Anyone" or "Send Money to Anyone": Choose the specific feature for sending money to external individuals.
Enter Recipient Details: You will be prompted to enter the recipient's U.S. mobile phone number or email address. You might be able to select a contact from your phone's address book if you have granted Varo access.
Enter Amount: Input the amount of money you wish to send.
Add a Memo (Optional): You can add a brief note or memo explaining the purpose of the payment (e.g., "for dinner," "rent," or "gift").
Review and Confirm: Double-check all the details: recipient, amount, and memo. Ensure the phone number or email is correct.
Authorize the Transfer: Confirm the transaction, often requiring your password, PIN, or biometric authentication.

This will instantly validate the transfer and the money will be sent within a few minutes.

b. For the Recipient (who may or may not be a Varo Bank Customer):\

The process differs slightly depending on whether the recipient has a Varo account or not.

Scenario 1: Recipient HAS a Varo Account:

Notification: They will receive a notification (email or SMS) indicating that money has been sent to them through "Varo to Anyone."
Automatic Deposit: The funds will typically be deposited directly into their Varo account automatically or with a simple tap within their Varo app.

Scenario 2: Recipient DOES NOT Have a Varo Account

Notification: The recipient will receive a text message (SMS) or email from Varo, depending on what the sender used, letting them know that someone has sent them money.
Follow the Link: The notification will contain a secure link. The recipient must click on this link within a specific timeframe (usually 24-48 hours).
Enter Bank Details: The link will direct them to a secure portal where they will be asked to enter their U.S. bank account routing number and account number where they want the funds deposited.
Confirm Deposit: Once they have entered their bank details, the money will be initiated for deposit into their specified account. This usually takes 1-3 business days, similar to a standard ACH transfer, as it needs to clear through the banking network.

Note: If the recipient does not claim the money within the specified timeframe, the funds will be returned to the sender's Varo account.

Key Considerations and Limitations:

Transaction Limits: Varo imposes daily and/or monthly limits on how much money you can send using "Varo to Anyone." These limits are typically listed in the app or on Varo's website and can vary based on your account history and verification status.
Correct Information is Crucial: Always double-check the recipient's phone number or email address. If you send money to the wrong contact, it can be difficult to recover the funds, especially if the recipient claims them.
Recipient Action Required (for non-Varo users): The recipient must click the link and provide their bank details to claim the money. If they don't, the funds will eventually be returned to you.
U.S. Bank Accounts Only: "Varo to Anyone" transfers can only be sent to and received by valid U.S. bank accounts.
Internet Connection: Both the sender and recipient need an internet connection to use and claim the funds.

"Varo to Anyone" is a highly convenient tool for managing personal payments and is a core feature that distinguishes Varo as a modern digital banking solution.

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How Can Someone Send Money To my Varo Account?

Someone can send money to your Varo account through several methods:

1. Varo to Anyone (if they are a Varo customer):

As seen above, this is the simplest and fastest method if the sender also has a Varo account.

They simply open their Varo app, go to "Move Money," select "Varo to Anyone," enter your email address or U.S. phone number linked to your Varo account, enter the amount, and send.

The money arrives in your Varo account instantly and is free.

2. External Bank Transfer (ACH Transfer) from another bank:

This is a common way to receive money from someone who banks elsewhere.

The sender would need your Varo account and routing numbers. You can find these in your Varo app under "Move Money" > "Direct Deposit" > "Copy and paste your banking info" or "Show account number."

The sender then logs into their external bank's online banking or mobile app and initiates an "external transfer" or "ACH transfer" to your Varo account using your Varo account and routing numbers.

These transfers typically take 1-3 business days to process.

3. Direct Deposit (for regular payments like paychecks or government benefits):

If someone is sending you a recurring payment, like a paycheck, pension, or government benefits, they can set up a direct deposit to your Varo account.

You will provide them with your Varo account and routing numbers (again, found in your Varo app under "Direct Deposit").

They will usually need to fill out a direct deposit form provided by their employer or benefits provider.

Varo often offers early access to direct deposits, meaning you could receive your money up to 2 days faster than traditional banks.

Tap here to find out if Varo works with Zelle.

4. Zelle (if they use Zelle and your Varo account is enrolled):

Varo Bank supports Zelle. If the sender's bank is also part of the Zelle network (and most major U.S. banks are), they can send money directly to your Varo account using your enrolled U.S. email address or mobile phone number.

You will need to make sure your Varo account is enrolled in Zelle within the Varo app using the email or phone number they will use to send the money.

Zelle transfers are generally fast, often arriving in minutes.

5. Cash Deposit (less common for "someone" to send, but possible):

While not a direct "send" from another person's account, someone could physically deposit cash into your Varo account.

Varo partners with CVS locations (and other Green Dot Network retailers like Walgreens, 7-Eleven, and Walmart).

The person would go to a participating retail location, hand the cashier their Varo debit card (and sometimes ID for larger amounts), and the cash they wish to deposit.

This is typically free at CVS, though other retailers might charge a small fee.

What you need to provide to the sender depends on the method:

Varo to Anyone/Zelle: Your U.S. mobile phone number or email address is linked to your Varo account.
External Bank Transfer/Direct Deposit: Your Varo account number and routing number.
Cash Deposit: Your Varo debit card (and sometimes ID).

Always be sure to only share your banking information with people you trust.

Varo Bank Zelle Limit:

Varo Bank, like other financial institutions, sets limits on how much money its customers can send using Zelle. These limits are in place for security reasons and to mitigate fraud.

While the exact Zelle limits for Varo Bank can sometimes vary and are subject to change, it's generally reported that Varo's daily Zelle limit is on the lower end compared to some larger traditional banks, often around $25 per day.

What to keep in mind regarding Varo's Zelle limits:

Internal Limits: Varo, like other banks, determines its own Zelle limits. These are not set by Zelle itself, but by the financial institution you use.

Factors Influencing Limits: Your specific Zelle limits with Varo might be influenced by factors such as:

How long your Varo account has been open.
Your account activity and history.
Varo's internal risk assessment.

Note, the most accurate way to find your current Zelle sending limit with Varo is directly within your Varo mobile app. When you initiate a Zelle transfer, the app will typically display your available sending limit for that transaction.

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Conclusion on Varo To Anyone:

"Varo to Anyone" is a strong offering for Varo customers, providing a competitive edge in the P2P payments space due to its combination of speed, no fees, and broad reach. It effectively bridges the gap between Varo's banking services and the wider financial ecosystem, making it a highly practical tool for everyday money transfers within the U.S.

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