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Venmo is a popular digital payment app with many options for sending and receiving money. If you’re unfamiliar with or new to the app, or even if you are a loyal Venmo user, you probably wonder about Venmo fees when you hover your phone over any particular QR code. Does it charge them, and can you avoid them? This quick guide has answers for you before you transfer funds with the mobile app and payment service.
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Quick Take: Does Venmo Charge a Fee?
Venmo does impose fees for specific types of transactions, while others are free. It’s essential to familiarize yourself with Venmo fees when sending money to minimize the cost of using the app. If you are wondering how much Venmo charges or how to avoid Venmo fees when possible, here are a few key takeaways when making personal payments:
- A 3% processing fee for sending money via credit card.
- A 1% to 5% Venmo fee to cash checks, with a minimum of $5, for immediate access to funds from deposited or cashed checks.
- 2.99% of the Pay with Venmo transaction to receive payment for goods or services after July 1, 2024.
- 2.29% of the Pay with Venmo transactions to receive payment for goods and services using contactless payment.
- 1.75% or a minimum of 25 cents or a maximum of $25 to transfer money instantly to a bank account or debit card.
- Variable fees for cryptocurrency transactions, starting at 49 cents.
- 1.9% Venmo non-profit fee, plus 10 cents for each donation received through a verified charity profile
- Notably, Venmo doesn’t charge an account set-up fee or monthly fee.
Sending Money With Venmo
To send money to others, Venmo charges a fee of 3% of the transaction amount when using a credit card. It’s free if you use your:
- Venmo balance
- Debit card
- Bank account
If you want to send money using Visa+, you can for free if the recipient is a PayPal digital wallet. But if you want to send money with Visa+ to another type of digital wallet, you’ll face a 1.75% fee with a minimum fee of 25 cents and a maximum fee of $25.
Receiving Money on a Personal Account
You might be wondering: Does Venmo charge a fee to receive money? You won’t incur a fee to receive money on Venmo unless the sender flags the transaction as payment for purchasing a product or service.
Depositing Money
You could incur the following fees when adding money to your account:
- A 1% fee with a $5 minimum to deposit payroll or government checks and get immediate access to the funds.
- A 5% or $5 minimum fee to deposit non-payroll and non-government checks and get instant access to the funds.
If you want to avoid fees when depositing checks, opt to wait for your funds. After ten days, you can tap into the funds from your cashed check without a fee. Also, if Venmo rejects your check deposit for security reasons, then you won’t encounter a fee because the funds won’t make it into your account.
Venmo Transfers
Venmo charges a 1.75% fee that can add a minimum of 25 cents and up to a maximum of $25 when transferring money to a debit card or bank account using the Instant Transfer withdrawal option.
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You can avoid this fee by opting for a standard transfer. Depending on your situation, it might take a few business days for a standard transfer to hit your account. But the wait can help you make the most of your funds by avoiding a fee.
Venmo Business
If you use Venmo to accept payments from customers, you’ll encounter several fees. Starting July 1, 2024, you’ll pay a Venmo goods and services fee of 1.99% when receiving the payment with a business or charity account. When a payment is sent to your business account via the Tap To Pay feature, the fee is 2.29% + $0.09 fee.
This fee increases to 2.99% if you’re using a personal account to receive payment for goods and services.
Receiving money through a Venmo business transaction doesn’t typically come with a fee. However, if you opt for an instant transfer you could incur a fee.
How To Avoid Venmo Business Fees
Understanding where Venmo fees come from is the first step to avoiding them or at least finding a few workarounds. Here are some ways you can possibly avoid fees through Venmo:
- Link a bank account
- Pay with your Venmo balance
- Accept payments through PayPal
- Avoid purchase protection
- Provide your tax ID
Venmo Non-Profit Fees
Donations received through Venmo are subject to a fee of 1.9% plus 10 cents. Venmo charges nonprofits this fee and the fee structure is similar to other digital payment processing rates. However, donors are not subjected to the fee so any charitable donation can be transferred for free. This is good to know if you are looking to donate, as Venmo may not be the preferred platform by your nonprofit.
Buying or Selling Cryptocurrencies
The fees for buying or selling cryptocurrencies with Venmo vary based on the value of the crypto being bought or sold:
| Transaction Amount | Fee |
|---|---|
| $1 – $4.99 | 49 cents |
| $5 – $24.99 | 99 cents |
| $25 – $74.99 | $1.99 |
| $75 – $200 | $2.49 |
| $200.01 – $1,000 | 1.80% |
| $1,000.01 and up | 1.50% |
If you are receiving a cryptocurrency transfer, you won’t encounter a fee. If you are transferring cryptocurrency to another Venmo or PayPal account, you also won’t face a fee.
Venmo Mastercard Fees
It’s free to get a Venmo debit card. When using the card, you won’t face any in-network ATM withdrawal fees. But out-of-network ATM withdrawals will cost $2.50 per transaction. If you want to withdraw funds over the counter, you’ll face a $3 fee.
How Do I Avoid Fees on Venmo?
If you want to minimize the fees you pay through Venmo, put the following tips into practice.
- Read the fine print: Don’t let yourself get surprised by a fee. Read the details closely to understand what fees you might encounter.
- Don’t use your credit card: Use your Venmo balance, bank account or debit card to avoid the 3% credit card fee.
- Wait for standard transfers: Standard electronic withdrawals allow you to bypass instant transfer fees. If possible, always opt for the standard transfer. Although you might have to wait a few days to use your funds, the lack of a fee might be worth it.
- Be patient for check deposits: Postpone accessing funds from check deposits to avoid check-cashing fees.
Venmo Fees vs. PayPal Fees
Venmo is owned by PayPal, and the two platforms share some of the same transaction features. Is one more expensive than the other? This table provides a quick comparison of some of the transaction fees common to both platforms.
| Transaction Type | Venmo | Paypal |
|---|---|---|
| Sending money | – 3% when using a credit card – Free when using Venmo balance, debit card or bank account | – 2.90% + 30 cents when using credit and debit cards to send USD – Free when using PayPal balance or bank account |
| Receiving payment for goods and services | – 2.29% + 9 cents for Tap To Pay transactions | – 1.75% for PayPal Zettle card transactions |
| Instant money transfers | 1.75% or a minimum of 25 cents or a maximum of $25 | 1.75% or a minimum of 25 cents or a maximum of $25 |
| Instant access to deposited checks | – 1% or $5 minimum fee for payroll or government checks – 5% or $5 minimum fee for non-payroll and non-government checks | – 1% or $5 minimum fee for payroll or government checks with a pre-printed signature – 5% or $5 minimum fee for all other accepted checks |
| Buying and selling cryptocurrencies | At least 49 cents or as much as 1.80% | At least 49 cents or as much as 1.80% |
Is Venmo Safer Than Zelle?
Venmo is no safer or riskier than Zelle for sending money to and receiving it from people you know and trust. However, users of both platforms have experienced scams, so it’s essential to stay up to date on how to avoid common scams on any payment app you use.
Final Take To GO
Venmo offers a convenient and secure way to handle personal and business transactions. However, understanding and navigating its fee structure is key to avoiding unnecessary costs. Opting for non-credit card payment methods and being patient with fund transfers can significantly reduce Venmo fees.
Caitlyn Moorhead contributed to the reporting of this article.
