Venmo Fees Explained – All You Know
Venmo, a popular mobile payment service, is known for its convenience and social features. However, like any financial service, it has a fee structure that users need to understand to make the most out of it. This detailed guide will break down Venmo fees in a personalized and easy-to-understand way, so you can use the app efficiently and avoid unexpected charges.
- Free Transactions
1.1 Sending Money to Friends and Family:
- No Fees for Bank Accounts or Debit Cards: When you send money to friends or family using your Venmo balance, linked bank account, or debit card, Venmo does not charge any fees.
- Note on Credit Cards: While sending money via credit card is convenient, it incurs a 3% fee. To avoid this, use your bank account or debit card.
1.2 Receiving Money:
- No Fees for Receiving Payments: Whether it’s a repayment for dinner or a birthday gift, receiving money from others on Venmo is completely free.
1.3 Venmo Balance:
- Using Venmo Balance for Purchases: If you have money in your Venmo balance, you can use it for free to make payments without any additional charges.
2. Standard Transfer Fees in Venmo
2.1 Standard Bank Transfer:
- No Fees for Standard Transfers: Transferring your Venmo balance to your bank account via the standard transfer option is free. However, it takes 1-3 business days for the transfer to complete.
3. Instant Transfer Fees
3.1 Instant Bank Transfer:
- 1.75% Fee (Minimum $0.25, Maximum $25): If you need to transfer your Venmo balance to your bank account instantly, you can do so for a 1.75% fee. The transfer happens within minutes, but remember this convenience comes at a cost.
4. Buying with Venmo
4.1 Online Purchases:
- No Fees for Authorized Merchants: When you use Venmo to make purchases with authorized merchants, there are no additional fees.
4.2 In-Store Purchases:
- No Fees with Venmo QR Code: If the store accepts Venmo QR codes for payments, you can pay without any extra charges.
5. Business and Premium Accounts
5.1 Receiving Payments for Goods and Services:
- 1.9% + $0.10 Fee: If you have a business profile or use your personal account to receive payments for goods and services, Venmo charges a fee of 1.9% plus $0.10 per transaction.
6. Cryptocurrency Fees
6.1 Buying and Selling Cryptocurrencies:
- Variable Fee Structure: Venmo allows users to buy, sell, and hold cryptocurrencies. The fees for these transactions vary:
- Transactions under $5: Fee of $0.49
- Transactions between $5 and $25: Fee of $0.99
- Transactions between $25 and $75: Fee of $1.99
- Transactions between $75 and $200: Fee of $2.49
- Transactions over $200: 1.5% of the transaction amount
- ATM Withdrawals
7.1 Venmo Debit Card:
- Free at MoneyPass ATMs: If you have a Venmo Debit Card, you can withdraw cash for free at MoneyPass ATMs within the U.S.
- $2.50 Fee at Non-MoneyPass ATMs: For withdrawals at ATMs outside the MoneyPass network, a $2.50 fee applies.
8. Foreign Transaction Fees
8.1 Using Venmo Abroad:
- 3% Fee for International Payments: If you use your Venmo card or account to make payments abroad, there is a 3% foreign transaction fee.
9. Pro Tips for Avoiding Fees in Venmo
9.1 Link Bank Accounts and Debit Cards:
- To avoid the 3% fee on credit card transactions, always link your bank account or debit card to your Venmo account.
9.2 Plan Your Transfers:
- Use standard transfers whenever possible to avoid the 1.75% instant transfer fee. Plan ahead to ensure you don’t need to transfer money urgently.
9.3 Utilize MoneyPass ATMs:
- Find and use MoneyPass ATMs for free cash withdrawals with your Venmo Debit Card.
9.4 Monitor Business Payments:
- If you use Venmo for business, keep track of the 1.9% + $0.10 fee per transaction and consider including these fees in your pricing.
Understanding Venmo’s fee structure can help you use the app more effectively and avoid unnecessary charges.