How to categorize bank-deducted Venmo payments

BK
BK Member ✭✭✭✭
I pay a merchant via Venmo for goods/services which is immediately deducted from my bank account.  Once downloaded to Quicken it translates to a linked Transfer category between the bank and Venmo.  This restricts the ability to properly categorize the transaction.  I can think of a few inelegant and creative manual entries to categorize this but as the Venmo usage increases, the creativity becomes burdensome.  How do you properly categorize such scenarios?  TIA.
- QWin Deluxe user since 2010, US subscription on Win11
- I don't use Cloud Sync, Mobile & Web, Bill Pay/Mgr

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Answers

  • volvogirl
    volvogirl SuperUser ✭✭✭✭✭
    Do you have Venmo set up as a separate account in Quicken?  You need to treat it like a credit card account or not use it at all.  You either categorize the purchase in the Venmo account or in your bank account.  
  • BK
    BK Member ✭✭✭✭
    Thank you @volvogirl .  I fully understand your suggestions since that is how I treat PayPal where I didn't add my PayPal account to Quicken and works as it should.  And my use of PayPal is now very little.
    Venmo is different for me and I have added it to Quicken as a separate account because:
    - Balance: Typically I carry a balance in Venmo and therefore when I pay for something, I can easily categorize it within Venmo's register - so far so good.  But there are also times where the Venmo balance is zero and hence the payment is deducted from my bank account, which is when I run into this challenge.
    - Description: When downloaded into Quicken, Venmo provides some transaction description.  Hence I don't have to chase down whom I paid for what which save me time.
    In short I want to have it both ways which is why wanted to know about other users' creative methods.
    - QWin Deluxe user since 2010, US subscription on Win11
    - I don't use Cloud Sync, Mobile & Web, Bill Pay/Mgr

  • volvogirl
    volvogirl SuperUser ✭✭✭✭✭
    Oh, I don't know how Venmo exactly works.  My husband uses it to pay 1 person and it just comes directly out of the checking account.  He doesn't have a balance at Venmo.  
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