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Venmo is a popular way to send and receive money, largely due to its ease of use and ability to see transactions in real-time. In fact, it can often prove outright hilarious to see the payment captions fly by on your feed. Gems like, “I’m really sorry I ate all your food!” and “Shut up and take my money” or the ever-popular “Free from the ATM fee” can all keep you tuning back in to see what people think up next.
But it’s not all fun and games–or necessarily true. Venmo fees do exist for certain services and can quickly eat into your bottom line if you’re not careful. Wondering which of their services cost the most? Here’s what you need to know.
Well known as one of the best digital platforms for sending money, Venmo has 10 million users and more signing up every day. While it started as a fun way to send money between friends, its acquisition by PayPal opened the doors for it to become much more.
Now, you can use this payment system to shop, collect business payments, and even buy cryptocurrency. All that extra goodness comes at a cost, however, in the form of Venmo fees, but not every service costs money.
You are still able to open an account for free. There are no monthly maintenance fees or charges if the system declines your transaction due to not having enough money in your account. If you decide to get the Venmo Mastercard debit card, it won’t cost anything to get your card, check your balance, reload your balance, or replace lost cards.
All their basic services are still free as well, such as:
· Sending funds from your Venmo balance
· Using a linked bank account or debit card to send money
· Requesting a standard bank account transfer
· Getting money from friends
· Securing a refund from a merchant
· Receiving direct deposit payments
If you stick to these services, you won’t see any Venmo fees come through on your account.
Venmo fees only kick in once you start using their premium features. As they add new features, new fee schedules land alongside, increasing what you might pay to use the platform. Its most recent fee increase occurred on July 10th, 2021, and another will occur on August 2nd. To help you avoid paying too much, here’s a look at all its paid services.
Although standard bank account transfers are free, you’ll pay extra for instant service. As of August 2nd, the fee increases to 1.5% of the amount you’re transferring. The minimum fee is $0.25, and it maxes out at $15. Prior to this change, the fee was 1% with the same minimum and a max of $10. By paying the fee, you can get your money within just a few minutes instead of the standard one to three business days.
If you don’t have enough money in your Venmo account, you can send money using your credit card. Although convenient, you’ll pay a 3% fee for that option. It does not have any minimums or maximums connected to this charge. When sending just $5, you’ll pay $0.15 in fees while a $1,000 payment costs $30. Beyond these fees, keep in mind what you’ll pay on the credit card side for adding charges to your balance. Credit card interest and fees can add up quickly, so it’s best to minimize how much you use it.
As your pet care side hustles or other business ventures take off, you can use Venmo to collect your payments. A seller transaction fee does apply, however, in the form of 1.9% plus $0.10 of your proceeds. This fee kicks in whenever you use your business profile to collect payments–and if the sender identifies the charges as for goods and services. So, if your friends are pranksters, make sure that they don’t accidentally activate this charge with their hijinks. Or if they do, they should at least cover the extra charge with their own funds.
The cash-a-check feature is convenient when you simply don’t want to go to the bank, but it will cost you. When cashing your paycheck or a government check, the system charges 1% with a $5 minimum. When depositing other types of checks, the fee increases to 5% with the same minimum. With either option, the balance will land in your account within minutes. If the check does not go through, you should not see a fee come out of your balance.
If you’re using the Venmo Mastercard debit card to pull money out of your account at an out-of-network ATM, expect to pay $2.50 per transaction. You can also get money out over the counter at the bank by paying a $3 fee. For no-fee withdrawals using your card, look for an ATM in the MoneyPass network. You can also buy a small pack of gum at the store or do your regular shopping and ask for cash back at the register.
Venmo now allows you to buy and sell cryptocurrency through the platform. The fees for this service are based on the transaction amounts. There’s a $0.50 minimum.
When buying and selling crypto, expect to pay:
· $0.50 for $1.00 to $24.99
· 2.3% for $25 to $100
· 2.0% for $100 to $200
· 1.8% for $200 to $1,000
· 1.5% for over $1,000
When you’re just holding onto your crypto and waiting for your balance to grow, you won’t pay any fees.
As Venmo grows, you can expect even more fees for its premium services. They’re also likely to raise their rates as they gain new customers and increase their market share.
While breaking your impulse shopping habit can save you tons of money, it’s all for nothing if you allow small fees to nickel and dime you to death. Unfortunately, the only way to fully avoid Venmo fees is by only using their basic features. When you start diving into their premium offerings, you’re bound to end up paying for the convenience.
Many other platforms charge fees as well for similar services, so the best you can do is compare their rates. As you do that, you can reflect on whether you really need that service. If so, just go with the lowest rate, confident in the fact that you saved yourself as much as possible along the way.
Just keeping all the different Venmo fees in mind is a great start in controlling where your money goes. Remember to check their terms often since things can change fast. Then, do the same with all your other accounts to avoid paying for services that might not be worth the price.