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.
- 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.
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!
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
Do
- Use your Venmo balance or debit card: To avoid fees when sending money.
- Double-check payment details: Ensure you’re sending or requesting money from the correct person.
- Stay updated: Keep an eye on Venmo’s fee changes to avoid surprises.
Don’t
- Use credit cards for personal payments: Unless necessary, to avoid the 3% fee.
- Overlook fee-free options: Standard bank transfers are free if you can wait a bit longer.
- Ignore security practices: Protect your account with strong passwords and two-factor authentication.
At TuitionHero, we help you find the best private student loans by comparing top lenders and breaking down eligibility, interest rates, and repayment options. Whether you need additional funding beyond federal aid or a loan without a cosigner, we simplify the process. We also provide expert insights on refinancing, FAFSA assistance, scholarships, and student credit cards to support your financial success.
Frequently asked questions (FAQ)
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.
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.
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.
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.
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.
151 Calle San Francisco