Venmo is one of the most widely used mobile payment services across the United States.
It’s convenient, easy to navigate, and quick to complete your transactions. But this doesn’t stop a lot of people from wondering about its fees, especially since they get updated regularly and users need to keep track of changes.
This brings us to today’s question: how much does Venmo charge per transaction?
Venmo charges the sender a 3% fee for credit card usage. However, Venmo doesn’t charge per transaction for basic transactions including money transfers from a user’s debit card, bank account, or Venmo balance.
Certain transactions will cost you an extra fee depending on their type.
These include credit card transactions, receiving business payments, instant withdrawals, cashing in a physical check, some Venmo Mastercard transactions, and buying or selling cryptocurrencies.
Continue reading to learn about the different fees that Venmo could charge you and how you can keep them to a minimum.
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Does Venmo Charge Fees?
Yes, Venmo charges fees of 3% on credit card transactions and only on some of its services, not all of them.
For starters, signing up for a Venmo account is completely free. Keeping a Venmo account active is also free because you don’t have to pay a monthly fee.
Additionally, you can use standard Venmo services without extra costs. These include money transactions from one Venmo user to another from their debit card, bank account, or Venmo balance.
As such, Venmo is free for the majority of users who only use it for such services.
However, let’s not forget that Venmo is still looking to make a profit like any other company. So it’s expected that some of the services that Venmo offers will cost a fee per transaction.
When Does Venmo Apply a Fee?
Venmo applies an additional fee on a few specialized types of transactions and services. Here’s a breakdown of each one:
Credit Card Transactions
As we mentioned earlier, you won’t be charged extra when sending money to other Venmo users via your debit card, Venmo balance, or bank account.
However, if you use your credit card to make transactions, you’ll pay an additional 3 percent fee. This also applies to your Venmo Credit Card.
Receiving Business Payments
If you use a business account on Venmo to receive payment as a seller, you’ll need to factor the transaction fees into your budget plan.
For every received payment of $1.00 or more, your business account will have to pay a charge of 1.9 percent plus 10 cents.
Even if you don’t own a business account, the same fees will apply if the sender marks a transaction as payment for products and services.
- We should mention that Venmo users who use credit cards to send payment to a business profile won’t be charged the standard 3 percent Venmo fee on credit card transactions.
Instant Withdrawals
If you want to send money to your bank account or debit card via Venmo, you can do it completely free of charge if you choose the standard transfer option that involves a waiting period of 3 to 5 business days.
However, if you don’t want to sit around waiting for your money to reach your bank account so you can withdraw it, Venmo offers an instant transfer option. This convenient feature uses your linked debit card to send money to your bank account within a few moments.
There’s a catch though, using the instant transfer feature costs an additional charge of 1.75 percent, costing at least 25 cents and up to $25 per transaction.
Cashing in a Physical Check
Venmo offers you the convenience of adding money to your account from physical checks, but you’ll need to pay a fee for it.
If you use Venmo to deposit non-government or non-payroll checks, the charge is a minimum of $5 or 5 percent.
If you use Venmo to deposit government or payroll checks, the charge is a minimum of $5 or 1 percent.
Some Venmo Mastercard Transactions
If you use Venmo’s Mastercard Debit Card to withdraw money from an out-of-network ATM, you’ll be charged an extra $2.50 (not including any separate ATM fees).
Also, there’s a $3 charge if you use Venmo’s Mastercard Debit Card to withdraw money over the counter from a bank or establishment where you need to sign to authorize the transaction.
Buying or Selling Cryptocurrencies
If you’re interested in the cryptocurrency scene, you’ll be pleased to know that you can deal with various cryptocurrencies right from your trusty Venmo app.
However, there’s an extra charge that you’ll need to pay depending on how much money you’re using to buy or sell cryptocurrency.
Here’s a summary of Venmo fees on crypto transactions:
- For sales and purchases of $1 up to $4.99, the fee per transaction is 49 cents.
- For sales and purchases of $5 up to $24.99, the fee per transaction is 99 cents.
- For sales and purchases of $25 up to $74.99, the fee per transaction is $1.99.
- For sales and purchases of $75 up to $200, the fee per transaction is $2.49.
- For sales and purchases of $200.01 up to $1,000, the fee per transaction is 1.8 percent.
- For sales and purchases of more than $1,000, the fee per transaction is 1.5 percent.
Can You Minimize Venmo Fees?
Here are a couple of ways you can reduce Venmo fees:
- Use your bank account, debit card, or Venmo Balance to avoid the 3 percent fee on credit card transactions.
- Choose the standard transfer option when sending money to your bank to avoid the 1.75 percent fee on instant transfers fee.
Wrap Up
All basic transactions through Venmo are free such as transferring money from one user’s debit card, bank account, or Venmo balance to another.
However, specialized services will cost you an extra fee that contributes to the company’s revenue. These include credit card transactions, receiving business payments, instant withdrawals, cashing in a physical check, some Venmo Mastercard transactions, and buying or selling cryptocurrencies.
Each type of transaction demands a different fee, so be sure to go through our list of fees to find out how much charge you should expect in your particular case.
