
Venmo transfers are instant and free, meaning there's no fee charged when you send money to other Venmo users. However, there's a fee involved when you use Venmo's instant transfer option to get cash to your linked debit card or bank account.
This fee varies depending on the amount you send. Before we see how much Venmo charges for instant transfers of $500, let's understand the fee structure for instant transfers.
Venmo Instant Transfer Fees
Venmo charges 1.75% as fees for all instant transfers from your Venmo account to a linked debit card or bank account. There's a minimum and maximum fee imposed as charges at $0.25 and $25 respectively. These fee changes were implemented, according to Venmo, on the 23rd of May, 2022 with respect to banking regulations.
So the minimum you can be charged as fees for an instant transfer is $0.25 and the maximum you can charged for instant transfers is $25.
How Much Does Venmo Charge for an Instant Transfer of $500?
Now that we know Venmo charges a 1.75% fee for instant transfers, it should be easy to calculate the fees for a $500 instant transfer.
That said, to know how much you'll be charged for an instant transfer of $500, you'll simply have to multiply the amount you're transferring times the fee percentage, that is;
1.75% of $500 = 0.0175 x 500 = $8.75.
So Venmo will charge you $8.75 for transferring $500 from your account.
When transferring the exact amount, you'll need to anticipate the fees, as these fees will be deducted from the total amount you're sending. In other words, Venmo will send $491.25 for a total of $500.
If you want your funds to be sent in an exact amount, that is $500, you'll need to send a total of $508.75 through the instant transfer option. This way, you'll anticipate the fees to be charged.
How Much Does Venmo Charge for an Instant Transfer of $1000?
Considering the fee structure mentioned above, the fees for an instant transfer of $1000 from your Venmo account should be 0.0175 x 1000 = $17.5.
What is the Maximum Fee for an Instant Transfer on Venmo?
Venmo has a fee cap of $25 for instant transfers and this is regardless of how much you're transferring.
Why Does Venmo Charge Me for Instant Transfers?
Standard transfers through Venmo take 1-3 business days to complete because they pass through the ACH banking process which takes longer to complete. Instant transfers use another network to transfer funds quickly which is why it comes at a cost.
How Long Does it Take for an Instant Transfer to Complete?
Instant transfers to linked debit cards or bank accounts should take a few minutes to reflect and should not take more than 30 minutes. If it does, means there's an issue with the transfer or with your linked payment method (maybe it doesn't support instant transfers).
Is there a Transfer Limit for Instant Transfers?
Yes, there's a transfer cap of $5,000 per single instant transfer and this will depend on a few factors including;
- Your account activity.
- Whether or not your account is verified.
- Violations of Venmo's TOS.
That said, if you're using an unverified account, you'll only be allowed to send $999.99 per rolling week to your bank account. Once your Venmo account gets verified, you'll be able to send up to $19,999.99 to your bank per week.
As you should have probably understood, if you need to make an instant transfer of more than $5,000, you'll need to request the transfer multiple times (with a maximum being 4 times) to reach the total amount you want to transfer.
The maximum fee per $5,000 transfer is $25 as mentioned earlier, so if you want to instantly transfer let's say $10,000, you'll have to pay a fee of $25x2 = $50.
Final Thoughts
Instant transfers on Venmo are convenient for getting cash quickly from the platform—but this comes for 1.75% of the total amount you're transferring. So if you're looking to transfer $500 through the instant transfer option, you'll be required to pay a fee of $8.75 which is deducted from the total amount you're sending.
With all that said, only use this option if the need for you to get cash is an urgent one because it is always best to avoid fees when using money transfer apps.