Venmo Fees & Rate Increases: 2023 Update

Venmo fee changes are not unusual in the world of fintech. As more and more people turn to online payments and digital wallets, companies like Venmo are under pressure to generate revenue and cover their costs. Several other payment apps, including Cash App and Zelle, have also increased their fees in recent years. However, these fee increases can be frustrating for users who have come to rely on these apps for their daily transactions.

Does Venmo charge a fee? Yes, Venmo charges fees, but they vary depending on how and why you use the platform. Venmo is one of the most popular apps for sending money. Since its launch in 2009, Venmo has evolved from a simple payment system into a social network that allows you to share your purchases with friends and family. The app also allows some businesses to accept payments from customers easily. But, if you have a high-risk business, Venmo may not work for you. Venmo has fees and charges that can add up like many other apps.

Why Does Venmo Charge Fees?

Venmo, like other money transfer apps, charges fees to make money. The company generates revenue by charging a percentage of each payment. The fee you pay depends on the type of transaction and where it’s sent. For example, Venmo charges a flat rate of 3% for sending money to another bank account in the US, while international payments can cost anywhere between 1% and 4%. Venmo also has a network fee, a percentage of the total amount sent. This fee is not charged to you directly; it goes to the credit card companies and banks that process the payment.

Venmo Fees: Effective May 25, 2022

The fees can be confusing if you’re new to Venmo. The Venmo app is free to download and use, but there are fees involved for some transactions.

Instant transfer fees for consumer and business accounts have been increased by Venmo effective 5/23/2022:

• Instant transfers for consumer accounts: 1.75% per transaction with a 0.25 USD minimum and 25 USD maximum (from 1.5% per transaction with a 0.25 USD minimum and 15 USD maximum).
• Venmo payment fees for consumer accounts: 3% of the transaction total if you use a credit card. Consumers are exempt from the 3% credit card usage fee if they are sending a payment to a business account.
• Seller transaction fees for business accounts: 1.9% plus 0.10 USD for every payment received over 1 USD.
• There are no fees for sending money using a debit card, bank balance or Venmo balance.

Venmo Mastercard Fees

Venmo offers a debit card through Mastercard. Users can enjoy 0 USD fees on most Venmo debit card transactions, such as Venmo debit card acquisition, in-network ATM withdrawals, ATM balance inquiries, automatic reloads using your bank account, and debit card replacement.

The only fees associated with the Venmo Mastercard debit card are for out-of-network ATM withdrawals at a rate of 2.50 USD per transaction and over-the-counter cash withdrawals at a rate of 3 USD per signature-required withdrawal.

Venmo Visa & Venmo Visa Signature Credit Cards

Venmo also offers credit cards through Visa and three different account types. Some rates accompany Venmo credit cards, just like other credit cards. The rates are as follows:

• The Annual Percentage Rate (APR) for purchases varies for each account type and is the prime rate plus 11.99%, 17.99% and 20.99%, respectively.
• The APR for cash advances is 20.99% for all account types.
• Your due date is 23 days after the end of a billing cycle, and you won’t be charged interest if you pay your balance within the same month as the purchases.
• If you’re charged interest, you will pay a minimum of 2 USD.

Venmo Visa and Venmo Visa Signature cards also carry fees. The fees are as follows:

• 0 USD for annual fees or foreign transactions.
• Cash advance transaction fees are 10 US or 5% of the amount of each cash advance, whichever is greater.
• Late payment fees are up to 41 USD.
• Returned payment fees are up to 29 USD.

Buying & Selling Cryptocurrencies With Venmo

Cryptocurrencies have become increasingly popular in the last five years. Venmo allows you to buy and sell cryptocurrencies using their platform, but some fees are associated. The Venmo cryptocurrency fees are below organized by purchases or sales amounts of crypto:

• 1 USD – 4.99 USD = 0.49 USD fee
• 5 USD – 24.99 USD = 0.99 USD fee
• 25 USD – 74.99 USD = 1.99 USD fee
• 75 USD – 200 USD = 2.49 USD fee
• 201 USD – 1000 USD = 1.80%
• >1000 USD = 1.50%

Other Venmo Fees

While many of Venmo’s features are offered free of charge, there are others that carry a fee that you may be less familiar with.

• Adding money using cash a check feature for faster check deposits, payroll checks and government checks will cost you 1% with a minimum of 5 USD, and any other accepted checks will cost you 5% with a minimum of 5 USD.
• Receiving payments made to your business or charity profile or payments identified as for goods and services will carry a fee of 1.9% plus 0.10 USD.

Venmo and PayPal

Many people have the misconception that Venmo and PayPal are the same things. In reality, they’re two different products.

PayPal is a payment processor that enables you to send or receive funds in your bank account through an email address or cell phone number. You can also link your credit or debit cards to PayPal and use them for online purchases. It’s associated with many other websites like eBay, Airbnb and Etsy because they also use this system (although some companies offer their own branded version).

Venmo is a social payment app used mainly for personal payments between friends. You can also use Venmo to pay for goods or services at participating merchants. The app lets users send money from their bank account directly into someone else’s account using their username and password.

Presently, companies can acquire payments from customers utilizing a Venmo account.

Both systems offer a vast array of services to both customers and vendors. Shoppers can make payments with either a PayPal Cash Card or a Venmo Debit Card by utilizing their PayPal or Venmo balance.

Those with a Venmo account are able to transfer money to other Venmo accounts from either a checking account or their Venmo balance. Transferring funds from a checking account is just as easy with PayPal.

You can find our comprehensive guide to interchange fees and rates here.

PayPal Fees: Effective June 17, 2022

Venmo is often associated with social media sites like Facebook and Twitter, but PayPal acquired it in 2012.

PayPal increased transfer fees for both business and consumer accounts effective 6/17/2022:

• PayPal Business Account instant transfer rate: 1.5% per transfer with a 0.50 USD minimum fee and no maximum per transaction (up from 1.5% with a 0.25 USD minimum and 15 USD max).
• PayPal Consumer Account instant transfers: 1.75% per transfer to a linked bank account with a 0.25 USD minimum and 25 USD max (up from 1.5% with a 0.25 USD minimum and 15 USD max).

Venmo Fees Frequently Asked Questions

• How much does Venmo charge to send $100?
  • According to Venmo’s FAQ page, there is no fee to send money using Venmo if you use your Venmo balance, bank account, or debit card as your payment method. However, if you use a credit card as your payment method, you will be charged a 3% fee. So, if you send $100 using a credit card, you will be charged a fee of $3.

• What are the fees for instant transfers on Venmo?
  • As of May 23, 2021, Venmo’s fee for instant transfers will be 1.75% per transaction, with a $0.25 minimum and $25 maximum. This is an increase from the previous fee of 1.5% per transaction with a $0.25 minimum and $15 maximum.

• Is there a fee to transfer money from Venmo to a bank account?
  • Starting on May 23, 2021, Venmo will charge a fee of 1.75% of the transfer amount for bank transfers that take 1-3 business days to process. However, there is no fee for bank transfers that take longer than three business days, according to Venmo’s FAQ page.

• What is the fee for using Venmo for business transactions?
  • If you use Venmo for business transactions, you will be charged a 1.9% fee for each transaction. This fee applies to businesses that receive payments through Venmo, not to individuals who use Venmo to pay their friends.

• How can I avoid paying Venmo fees?
  • To avoid paying Venmo fees, you can use your Venmo balance, bank account, or debit card as your payment method when sending money. If you use a credit card, you will be charged a fee of 3%. Additionally, you can choose to receive payments through Venmo using a bank transfer that takes longer than three business days, as there is no fee for this type of transfer.

Choose Zenti

If you’re a Venmo user, it’s important to understand how these fee changes will affect you. You may have seen a significant increase in your fees depending on how you use the app. To avoid paying unnecessary fees, it’s a good idea to review your Venmo usage and consider switching to a different payment app if the new fees are too high. Additionally, you may want to explore other ways to save money on your transactions, such as using a bank transfer instead of an instant transfer or linking your Venmo account to a debit card instead of a credit card.

Venmo has become a trendy way to pay and get paid. It’s convenient and easy to use, but it also comes with some added fees you should be aware of before choosing Venmo over another payment service. While the fees may seem small at first glance, they can add up quickly if you regularly use your Venmo account for payments large or small.

Venmo doesn’t work for everyone. Contact us today if you have a high-risk business and need a payment solution catered to you.