Venmo transfers are usually free—meaning if you send money from your Venmo account to another Venmo account, you won't be charged a fee for the transaction.
However, some things can come into play that can make Venmo charge a fee when you send money even if it is just to another Venmo user—but why is it so?
Let's see why and when Venmo charges fees to send money.
Why Does Venmo Charge a Fee to Send Money?
Usually, there's no fee when you send money on Venmo, but you'll be charged for sending money in a few cases including;
1. When You Send Money With Your Credit Card
Sending money to other users on Venmo through your linked credit card will incur a 3% fee. This amount is charged to your card as the funds are sent. You can always avoid these fees by using your Venmo balance, linked debit card, or bank account to transfer the funds. You won't be charged for using these funding sources.
2. When You Send Money Using Visa+
Visa+ is Venmo's new feature that allows users to send money to other supported Wallets most especially to PayPal. It offers a practical way to transfer money from Venmo to PayPal without using a bank account as a bridge as we used to do over the years.
Venmo charges a 1.75% fee (with a minimum being $0.25 and a maximum being $25) when you use Visa+ to transfer money out of your Venmo account to other wallets. But this doesn't imply Venmo to PayPal transfers—this one is free through Visa+.
So if you intend to use this method to move funds from your Venmo account, you should now be aware the the fees this could cause you.
3. When You Use Instant Transfers
Instant transfers offer a convenient way to cash out from Venmo to a linked US debit card or bank account—but this comes at a cost. Venmo charges a 1.75% fee for every instant transfer you make through the app.
So if there's no urgency for the funds you're looking to withdraw, it is always preferable to use the standard transfer option which takes 1-3 business days to arrive in your account.
How Much Does Venmo Charge for an Instant Transfer of $500?
Venmo charges a 1.75% fee for instant transfers. This means if you're looking to transfer $500 through the instant transfer option, you'll be charged a $8.75 fee for the transaction.
Does Venmo Charge a Fee for Receiving Money?
Venmo will only charge you a fee for receiving money if the funds were marked as a payment for goods and servers when sent by the sender. Besides that, receiving money on your personal Venmo profile is always free even if the sender used a credit card to send the funds.
How to Avoid New Venmo Fees When Sending Money
The best and only way to avoid fees when sending money to other Venmo users is by using your Venmo balance, debit card, or bank account as a funding source instead of your credit card. This will help you avoid a massive 3% fee for the transaction.
If you're looking to avoid fees when withdrawing funds from Venmo, it's best you use the standard transfer option because though this one takes 1-3 business days to arrive, the instant transfer option, on the other hand, comes at a cost.
Final Thoughts
Venmo is a popular payment services that has won the heart of every Americans. Perhaps, the reason they choose Venmo over the competition is due to its convenience and low-cost transactions.
Usually, there's no fee to pay when sending money on Venmo, but if you use a credit card to transfer funds, you'll incur up to 3% fee—and there are even more situations where you'll incur fees when sending money on Venmo.
This guide compiles all those situations and explains the best way you can avoid these fees imposed on Venmo transfers.