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For basic users, the fees associated with Venmo are relatively low. You can purchase products online without paying anything. Additionally, there are no Venmo transaction fees in place if you’re simply sending money to someone using a connected bank account.
Here’s everything you need to know about Venmo’s costs.
How Does Venmo Work?
Venmo is a simple peer-to-peer and online payment service, similar to the likes of PayPal. As of 2021, around 70 million people were using Venmo to process transactions. However, despite the popularity of this service, many still don’t understand how Venmo works, or whether Venmo is charging fees for users to access their accounts.
Learn more:
Mobile Payment Statistics of 2024
Venmo gives users access to a digital wallet, where they can store money, send and receive cash, and make transactions using a connected bank account. There is no monthly fee for having an account, and no fees for setting up your account. Here are some of the other things you can do without incurring any Venmo fees in 2024.
Transfer money from a bank account
Receive money in your personal account
Receive a merchant refund
Receive cash using a direct deposit
Withdraw money to a bank account (standard)
Use the Venmo debit card for purchases or ATM withdrawals
Does Venmo Charge a Fee?
Although there are no Venmo fees for many of the things you can do with your online account, there are some expenses you still need to keep in mind. For instance, if you want to send someone money using a credit card, there will be a 3% charge on your transaction.
If you want to add money to your Venmo account using a check or cash, there’s a Venmo service fee of 1% or 5% depending on the payment. For the most part, there is no Venmo fees to send money, but if you want to receive payments as a business, you’ll be charged 1.9%, plus 10 cents.
There are also some new Venmo fees coming into place for certain transfers. After May 2023, an instant withdrawal to your bank account will cost you 1.75% on top of the transaction.
Other Venmo Charging Fees in 2024
So, does Venmo take a percentage of every transaction? Not necessarily. However, there are a number of costs associated with different purchases and withdrawals. Aside from the fees mentioned above, some of the other costs you may need to account for include:
Out-of-network ATM fees: $2.50
Over-the-counter cash withdrawals: $3
Cash advances: The prime rate plus 20.99%
Penalty fees: $40 for a late payment, or $29 for a returned payment
Interest charges: Minimum of $2
Some of the Venmo new fees also add charges for cryptocurrency transactions. The amount you’ll spend on fees depends on how much you’re buying or selling. If you’re selling more than $1000, or receiving more than $1000 worth of cryptocurrency, the fee is 1.5%. For lower-cost transactions the fees are slightly higher.
Learn More: How Much Does PayPal Charge?
Does Venmo Have Any Hidden Fees?
Like all payment processing tools and electric wallets, Venmo has certain transaction fees for different purchases. You can use a Venmo fee calculator before you begin a transaction to determine how much you’re likely to spend.
However, one of the good things about Venmo is most of the features you can access as a personal account holder are free. The Venmo service charge for payments and withdrawals generally only applies to when businesses use an account to take transfers, and when you want to withdraw your money to a bank account.
You can avoid some Venmo fees simply by keeping some of your money in your electronic wallet, or making sure you double-check the fees associated with each transaction before you begin. Keep in mind, the transaction fees Venmo charges businesses and consumers can change over time.
