In this article, we’re answering “Does Venmo charge a fee?” In short, the answer depends on the type of account activity you engage in and the type of Venmo account you have.
This is similar to more traditional banking options in the United States, including brick-and-mortar options that foreign non-residents can access remotely.
We’ll explore both of these variables below along with the factors that can result in you being charged fees for using the Venmo app.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Does Venmo Charge a Fee?
- Is There a Fee to Set Up a Venmo Account?
- Does Venmo Charge Fees to Receive Money?
- Does Venmo Charge Fees to Send Money?
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
Does Venmo Charge a Fee?
Venmo does not charge a fee for personal accounts. This includes opening a personal Venmo account, maintaining an account, or sending personal transfers. However, if a credit card is used to complete a payment, Venmo charges a 3% fee. Additionally, instant transfers incur a 1.75% fee.
That said, Venmo fees for business accounts are structured differently. While it is also free for businesses to open and maintain accounts, Venmo charges transaction fees for payment processing. These fees range from 1.9% to 3.49%, depending on the method used for capturing payment details.
With this in mind, if you are looking for a personal payment app to send and receive funds to friends and family members from your bank account, Venmo costs you nothing to use. That said, there are relatively strict limitations on the amount of money you can send each day and week on Venmo. So, if you are looking for volume transactions, you should compare these limits to your needs.
However, if you are looking for a payment platform for a business, it’s important to compare Venmo pricing to the pricing of each of the other payment services you might be considering. Otherwise, you may find that the cost of processing a transaction through Venmo is higher than you’re comfortable with.
In the following sections, we’ll take a look at some of the most common questions we receive about using Venmo and the associated fees.
Before diving in any further, if this is your first time visiting GlobalBanks, don’t forget to download your FREE US Banking Starter Guide. It’s designed to help non-residents with opening bank accounts at top financial institutions in the US.
Is There a Fee to Set Up a Venmo Account?
No, there is not a fee to set up a Venmo account. This is true whether you are interested in setting a personal Venmo account or a Venmo for business account.
Does Venmo Charge Fees to Receive Money?
No, if you have a personal account, Venmo does not charge fees to receive money. Instead, Venmo may charge the sender of a transfer if they use a credit card to pay. That said, if you have a Venmo business account, Venmo does charge fees to receive money through payment processing fees. The specific fees charged vary by the method used to capture payment information.
Does Venmo Charge Fees to Send Money?
No, Venmo does not charge fees to send money if you are sending from your personal account to friends and family through your bank account. However, if you send a transfer that is paid through a credit card, Venmo will charge a 3% transaction fee. Likewise, Venmo will charge a 1.75% fee if you send payment through an instant transfer.
Frequently Asked Questions
Below are four of the most common questions we receive from people looking into whether or not Venmo charges fees. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
Does Venmo Charge a Fee for Every Transaction?
No, Venmo does not charge a fee for every transaction. Instead, Venmo only charges a fee for payments sent using your credit card and electronic withdrawals using the instant transfer method. The charge for credit card payments is 3% while the charge for instant transfers is 1.75%.
How Do I Avoid Fees on Venmo?
To avoid fees on Venmo for a personal account you should not send money to people using your credit card and you should not conduct an electronic withdrawal using instant transfer. If you avoid using these two features, you will be able to use your Venmo personal account while avoiding fees.
How Much Can You Send on Venmo for Free?
The amount of money users you can send on Venmo is set by account type and verification status. The weekly limits for personal accounts range from USD 299.99 to USD 19,999.99. The weekly limits for business accounts range from USD 999.99 and USD 49,999.99. You can send this amount on Venmo for free as long as you use the free withdrawal and transfer methods available.
How Much Does Venmo Charge For an Instant Transfer of $500?
For an instant transfer of $500, Venmo charges a 1.75% fee which equals to $8.75. Importantly, the 1.75% fee is capped at a maximum of $25.00 and there is a minimum charge of $0.25.
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