Payment systems

Venmo Transfer Fees: A Complete Overview

Irina Tsymbaliuk
Venmo Transfer Fees

The Venmo app is designed for quick social payments and is part of the PayPal ecosystem. The service is top-rated because it ensures the security of its users' data when sending and receiving money. According to Oberlo, in 2019, Venmo had over 41 million active users. By 2020, that number exceeded 62 million; in 2021, it reached 70 million. And the app's audience continues to grow.

Venmo offers its services to individuals and businesses, providing various transaction options, including transfers to cryptocurrency accounts. Before starting, regardless of your purpose for using the app, it's essential to understand its financial policies. This way, you can avoid unexpected expenses and other unpleasant situations.

In this article, we will explore how much Venmo charges for transferring money and the types of fees it entails. We will also discuss how to calculate and minimize the cost of services for various transactions.

How Venmo Transfer Fees Work

How Venmo Transfer Fees Work

For beginners, we've already explained what is venmo and how does it work, how to use it, and how do you set up venmo in our previous articles.

You can make payments on the Venmo platform using the following methods: bank account, personal Venmo account, and debit or credit cards. You may be charged a fee when transferring funds between your accounts or from one source to another. This may be a flat fee or a percentage of the total amount.

So, what are the fees for Venmo? Let's see what types of transfers are available:

  • Instant transfers — 1.75%. The minimum fee is $0.25, and the maximum is $25.
  • Transferring money from your own credit card to someone else's account — 3%.
  • Electronic withdrawal of funds — 0%.
  • Instant electronic funds withdrawal — 1.75%. The minimum fee is $0.25; the maximum fee is $25.
  • The merchant fee is 1.9% of the transaction amount. An additional $0.10 is charged to receive funds for services/goods.

For operations with cryptocurrencies, the commission is calculated depending on the total sum of purchases or sales. Read the table to learn more:

Buy/sell sum

Venmo service fee

$1 – $4.99

$0.49 

$5 – $24.99

$0.99 

$25 – $74.99

$1.99 

$75 – $200

$2.49

$200.01 – $1,000

1.80% of the total amount

$1,000 and more

1.50% of the total amount

This fintech app is focused on transparent cooperation with its users, so it charges zero percent for basic transactions, for example, for sending and receiving money from your bank account or debit card. In other cases, when Venmo transfer fees are mandatory, they are never hidden.

How to Calculate Venmo Transfer Fees?

There are various transaction fee calculators with pretty simple functionality to help determine the cost of using Venmo for instant transfers. If you regularly send money to different accounts or cards, these tools allow you to avoid manual interest calculation, saving time.

The calculator has fields where you need to enter the following information:

  • Type of transaction
  • Transfer amount

Once you type the needed info, you will instantly receive an accurate result. Use the calculator to find out how much Venmo transfer fees are. Thus, you will be able to perform any transactions and be confident in the safety of your finances and will know exactly how much you should pay.

Strategies to Minimize Venmo Transfer Fees 

Want to minimize the cost of financial transactions made through the app? Take advantage of a few proven strategies to help you save on fees.

Avoid using a credit card

Avoid using a credit card

The service charges a fee for transactions made only via credit card. Thus, you can avoid paying interest when transferring money from your personal Venmo balance, debit card, or bank account.

Use the instant transfers feature only in emergencies

Does Venmo have a transaction fee for instant transfers? Yes, the app charges 1.75% of the total amount for instant transaction services.

In addition, standard electronic transfers of funds to your account are processed without fees. Use this method if you have the time to wait for your transaction to be processed.

Typically, a free transfer takes between one and three business days. Otherwise, you will have to pay fees ranging from 25 cents to $25 for the instant sending and receiving money.

Cash checks by selecting the "in 10 days" option

The app allows you to cash your checks by capturing an image. There are two options to receive the money into your account:

  1. Instantly (in minutes), but with a fee.
  2. After a certain period (in 10 days) — free of charge.

Please note that for security reasons, Venmo may reject your check. For example, if it has someone else's name or if the amount exceeds $5,000. In such cases, no fees are charged since the money will not be credited to your account.

Conclusion

Venmo is a convenient and secure app for promptly managing your finances and cryptocurrencies. Venmo’s payment fees vary depending on the type of transaction. However, the app offers free services to its users. For example, sending and receiving money with a debit card or standard electronic transfers are available to customers without any fees. Depending on your goals, you can choose the most advantageous way to use this fintech solution. Stay updated on the latest developments in the financial technology sector with Rates.

FAQ

What are the fees for using Venmo?

You can use Venmo's services and open your own account on the platform for free. There is also no mandatory monthly maintenance fee for the app. However, you will have to pay for transactions using your credit card or for instant transfers.

What is a seller transaction fee on Venmo?

Fees for Venmo payment, which was made to your business profile, is the standard rate of 1.9%, plus $0.10 of the transaction amount.

Does Venmo provide debit cards?

Yes. The service, in cooperation with Mastercard, issues its own debit cards. To do this, you must apply on the official website and confirm your personal data. The card is available to all users completely free of charge. The physical counterpart is delivered to your home address within 10 business days.

What is the transaction fee for Venmo?

Depending on the type of transaction, different fees are assigned. For credit card transactions, it's 3%, and for transferring money instantly — 1.75%. There is no fee for simple transactions with a debit card or a personal account.