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Venmo Fees: Everything To Know

Looking to make a transaction through Venmo but are scared of the fees? Here's a quick guide compiling the Venmo fee structure.
venmo fees

Venmo, the popular peer-to-peer payment app, is known for its ease of use and social features. Its fee structure is one of the most lenient among peer-to-peer payment services. While many basic transactions are free, there are situations where Venmo charges fees. This blog post will discuss the different types of Venmo fees and how to avoid them whenever possible.

Free Venmo Transactions

Venmo is typically known as a free P2P payment service as it typically lets users send and receive money without having to pay any fee. So before we talk about its fee structure, let's see the different free transactions on the app.

1. Sending money between friends

This is Venmo's basic transfer feature. It is very easy and straightforward to send a payment to a friend or relative on Venmo—and as long as you use your Venmo balance, linked bank account, or debit card to send money to friends and family, you won't incur any fees.

2. Receiving money

There's no charge for receiving personal payments from other Venmo users, regardless of the payment method used by the sender.

3. Standard transfers

Transferring money from your Venmo balance to your linked bank account is typically free (although processing times may apply).

4. In-network ATM Withdrawals

Venmo has partnered with ATM networks such as MoneyPass and Allpoint to offer surcharge-free ATM withdrawals for cardholders. So if you own a Venmo debit card, you can make a free withdrawal at an in-network ATM.

Venmo Fee Structure

Now comes the interesting part. It is always important to know what transactions through Venmo can incur a fee to avoid getting financially frustrated because sometimes, fees can become even more costly than you might think.

Transactions through which you'll be charged a fee on Venmo include:

1. Instant Transfer Fees

This is one of the top features that Venmo and other payment services like Cash App offer for customers who need to make urgent withdrawals from the platform and can be one of the most costly for those looking to withdraw huge amounts. Venmo offers instant transfers to your linked debit card for a fee of 1.75% (with a minimum of $0.25 and a maximum of $25).

2. Credit Card Payment Fees

Venmo lets you link a credit card to your Venmo account and send payments—but be careful, there's a huge fee that comes with such transactions. Sending money using a linked credit card comes with a hefty 3% fee. It's generally cheaper to use your debit card or available Venmo balance.

3. Business and Services Fees

Venmo lets you mark an eligible payment that is being made to a business as a purchase to benefit from its buyer protection program. When you make a payment as "Goods and Services" you'll incur a 1.9% fee + 10 cents for the seller. This fee is intended to cover the added protection offered by Venmo's Purchase Protection Program.

4. Non-Payroll Check Deposits

Depositing checks through the Venmo app comes with a fee. It's typically 5% for non-payroll checks with a minimum of $5, but can be lower for payroll checks.

Venmo Fees to Send Money

Venmo does not charge fees when you send money to friends or relatives. However, if you do so with a credit card, then you'll incur a 3% fee for this particular transaction. Also, as earlier mentioned, Venmo will equally charge you for instant transfers to your linked debit card.

How to Avoid Venmo Fees

Sometimes, fees usually come unaware—and Venmo comes with its own fee structure. Here are some useful tips to minimize fees on Venmo:

1. Plan ahead

If you know you'll need quick access to cash, transfer funds from your Venmo balance to your bank account beforehand to avoid instant transfer fees.

2. Avoid using Credit Cards

Credit card payments are costly and unless you have no choice, stick to your debit card or Venmo balance to send money to minimize fees.

3. Communicate clearly

When splitting bills or paying for goods and services, discuss who will cover the Venmo fee beforehand.

4. Consider alternatives

If you are a business or frequently do business transactions, convert your personal profile to a Venmo Business Profile (which may offer fee waivers) or other payment platforms with lower fees for business transactions.

Final Thoughts

Venmo offers a convenient way to send and receive money, but its fee structure can become a major inconvenience in most cases. This guide compiles everything you should know about Venmo fee structure so you can make informed choices and avoid unnecessary charges. Remember, a little planning can go a long way in keeping your Venmo transactions cost-effective.

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About the Author

Tebid Kelly is a Graphic Designer, Web Developer, Ethical Hacker, Programmer, and Content Creator who showcases his skills and experience on his blogs. He also has much love for finance apps such as Cash App, Venmo, PayPal, Zelle, etc on which he ha…

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