Venmo Fees

If you’re anything like my friends and I, cash is basically a thing of the past. Instead, we settle dinners out or movie tickets through digital payment methods like Venmo. But let's face it—no one likes unexpected fees popping up when sending money to friends or family.

Key takeaways

• Venmo accounts are free to set up and maintain
• Sending money is fee-free when using your balance, debit card, or bank account; credit card payments incur a 3% fee
• To minimize fees, use fee-free funding sources, opt for standard transfers, and stay informed about Venmo's fee structure

If you've ever wondered why some of your Venmo transactions are free while others come with a charge, you're not alone. In this guide, we'll break down Venmo's fee structure so you can navigate your transactions like a pro and avoid unnecessary costs.

Setting up and maintaining your Venmo account is free

Good news! Getting started with Venmo won't cost you a dime. There are no fees to set up an account, and you won't be hit with monthly maintenance charges. You can download the app, create your account, and start sending or receiving money without worrying about hidden setup costs.

Sending money can be fee-free, depending on how you pay

Did you know that the method you choose to fund your Venmo payments could affect whether you pay a fee?

• Using your Venmo balance, debit card, or bank account: If you fund your payments using your Venmo balance, a linked debit card, or your bank account, you won't incur any fees. It's a great way to send money without extra costs.
• Using a credit card: Opting to pay with a credit card? Expect a fee of 3% of the transaction amount. This fee is standard across all credit card transactions on Venmo, so consider using a debit card or bank transfer to save money.

Receiving money is usually free, unless it's for goods or services

When friends pay you back for dinner or split the cost of tickets, you won't be charged a fee to receive their payments. However, there are some exceptions:

• Personal payments: Receiving money from friends and family is fee-free unless the sender marks the transaction as payment for goods or services.
• Business and charity profiles: If you have a business or charity profile, Venmo charges a seller transaction fee:
  • Business profiles: 1.9% + $0.10 per transaction for payments received.
  • Contactless payments with tap-to-pay: Slightly higher at 2.29% + $0.10.
  • Charity profiles: Also incur a 1.9% + $0.10 fee per transaction.

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Instant transfers come with a convenience fee

Need your money moved to your bank account right away? Venmo offers instant transfers for a fee:

• Instant transfer fee: 1.75% of the transfer amount, with a minimum fee of $0.25 and a maximum of $25.
• Standard transfers: If you can wait 1-3 business days, standard bank transfers are free.

Buying and selling cryptocurrency involves transaction fees

Venturing into crypto with Venmo? Be aware of the fees associated with buying and selling:

• Transaction amounts and fees:
  • $1 to $4.99: $0.49 fee
  • $5 to $24.99: $0.99 fee
  • $25 to $74.99: $1.99 fee
  • $75 to $200: $2.49 fee
  • $200.01 to $1,000: 1.80% of the transaction amount
  • Over $1,000: 1.50% of the transaction amount

Depositing checks may incur fees for immediate access

Venmo's check deposit feature offers convenience, but watch out for fees if you need funds immediately:

• Payroll and government checks:
  • Fee: 1% of the check amount, with a minimum fee of $5, for immediate access of the funds.
• Other checks:
  • Fee: 5% of the check amount, with a minimum fee of $5, for immediate access of the funds.
• Standard processing: Choosing to wait for standard processing times means you won't pay any fees.

Using Venmo cards may lead to ATM and other fees

Venmo offers both debit and credit cards, each with its own fee structure:

Venmo debit card

• Purchases and transactions: No fees for using your debit card for purchases.
• ATM withdrawals:
  • In-network ATMs: Free withdrawals at MoneyPass® ATMs within the U.S.
  • Out-of-network ATMs: $2.50 fee per withdrawal.
• Over-the-counter withdrawals: Withdrawing cash at a bank costs $3.00.

Venmo credit card

• Annual fee: None.
• Other fees:
  • Cash advances: $10 or 5% of the transaction amount, whichever is greater (and the advance APR is the prime rate plus 23.99%).
  • Late payment fee: Up to $41.
  • Returned payment fee: Up to $41.
• Interest rates: Variable APR between prime + 11.99% and prime + 23.99%, based on your creditworthiness.

Stay updated on Venmo fees

While there haven’t been major changes to Venmo’s fee structure lately, it’s important to stay updated and informed on potential changes. The last thing you want is for a simple transfer to your friend to result in unexpected fees for both of you!

TuitionHero Tip

Fun fact: Ever wondered where "Venmo" comes from? It's a combination of the Latin word "vendere," meaning "to sell," and "mo" from "mobile." So, Venmo essentially means "sell on mobile"!

Dos and don'ts of using Venmo

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Frequently asked questions (FAQ)

What transactions on Venmo are free?

Sending money using your Venmo balance, linked bank account, or debit card is fee-free. Receiving payments for personal transactions is also free unless marked as payment for goods or services.

When does Venmo charge a fee for sending money?

If you use a credit card to send money, Venmo charges a 3% fee on the transaction. To avoid this, use your Venmo balance, bank account, or debit card.

Are there fees for transferring money from Venmo to a bank account?

Standard bank transfers (1-3 business days) are free. Instant transfers, however, incur a 1.75% fee with a $0.25 minimum and a $25 maximum.

How do Venmo fees apply to businesses and charity profiles?

Venmo charges a 1.9% + $0.10 fee per transaction for business profiles. Charity profiles also incur this fee. Contactless payments with Tap to Pay have a slightly higher fee of 2.29% + $0.10.

Does Venmo charge fees for cryptocurrency transactions?

Yes, Venmo charges tiered fees based on the transaction amount, starting at $0.49 for transactions under $5 and moving to a percentage for larger amounts.

Final thoughts

Venmo's fee structure might seem complex, but once you know the basics, it's easy to navigate. Most personal transactions remain fee-free when using your Venmo balance, debit card, or bank account.

By understanding where fees come into play, like with credit card usage or instant transfers, you can make informed decisions that keep your transactions cost-effective. Stay informed, choose your funding sources wisely, and you'll minimize fees while enjoying the convenience Venmo offers.

Source

• Venmo fees
• Venmo business fees
• Transfer fees
• Crypto fees
• Check cashing fees
• ATM fees
• Venmo credit card
• Venmo fee updates