Last Updated: 1/3/2024
Venmo and PayPal are two popular platforms for both merchants and individuals. Each offers mobile payment system, making it easy to send money from anywhere.
Whether you’re using Venmo or PayPal payments for personal use or for your business, there are some new fee changes that you must be aware of.
New Venmo Fees (2024)
Venmo is increasing instant transfer fees for both Venmo Consumer accounts and Venmo Business Profile accounts:
- Instant Transfers – 1.75% per transaction ($0.25 minimum and $25 maximum)
- Sending Money With a Credit Card – 3%
- Seller Transaction Fees to Receive Money – 1.9% + $0.10
- Standard Electronic Withdrawal – $0
- Instant Electronic Withdrawal – 1.75% (minimum $0.25 and maximum $25)
- In-Network ATM Fee – $0
- Out-of-Network ATM Fee – $2.50
- Adding Money Using Cash Check Feature – 1% (minimum $5) for government or payroll checks and 5% (minimum $5) for all other checks
There are no fees for using Venmo to send money using a debit card, bank balance, or Venmo balance.
Does Venmo Charge a Fee?
Sellers with a Venmo Business Profile using Venmo to accept customer payments are charged a fee of 1.9% + $0.10 per transaction. There are no setup fees and no monthly fees charged to Venmo Business accounts.
Users making payments to a Venmo Business profile via credit card are except from the standard 3% credit card fee (that’s normally applied when users send money on Venmo with a credit card).
PayPal Merchant Fees (2024)
Here are the latest PayPal merchant fees, as of July 24, 2023:
- PayPal Checkout – 3.49% + $0.49 per transaction
- PayPal Guest Checkout – 3.49% + $0.49 per transaction
- QR Code Transaction ($10 or less) – 2.40% + $0.05
- QR Code Transaction ($10.01 or more) – $1.90% + $0.10
- QR Code Transactions via Third-Party Integration – 2.29% + $0.09
- Pay with Venmo – 3.49% + $0.49
- Send/Receive Funds for Goods/Services – 2.99%
- Standard Credit Card Payments – 2.99% + $0.10
- Standard Debit Card Payments – 2.99% + $0.10
- Receiving Domestic Charity Transactions – 1.99% + $0.49
- All Other Commercial Transactions – 3.49% + $0.49
The rates above are for US-based merchants getting paid in USD. International commercial transactions will incur an additional 1.50% fee. The fixed fee also varies for different currencies, and you can refer to this table from PayPal for specific rates.
Other PayPal Fees and Updates
PayPal is increased transfer fees for both business and consumer accounts on 6/17/2022.
- PayPal Business Account instant transfer rate is changing to 1.5% per transfer with a $0.50 minimum fee and no maximum per transaction (up from 1.5% with a $0.25 minimum and $15 max).
- PayPal Consumer Account instant transfers are increasing from 1.75% per transfer to a linked bank account with a $0.25 minimum and $25 max (up from 1.5% with a $0.25 minimum and $15 max).
About Venmo and PayPal
PayPal is an industry leader in the online payments space and P2P money transfers. The platform facilitates more than 40,000+ transactions per minute, for a total of $1.25 trillion in payment volume per year.
There are more than 426 million active consumer and business accounts associated with PayPal.
Venmo was originally founded in 2009, and was acquired by PayPal in 2012. Today, Venmo is trusted by 60+ million users worldwide. What initially started as a mobile solution for fast money transfers between friends and family has evolved into a merchant solution in recent years.
Today, businesses can collect payments from customers with a Venmo account.
Both platforms offer a wide array of solutions for consumers and merchants alike. Consumers can use the PayPal Cash Card and Venmo Debit Card to make payments with a PayPal or Venmo balance.
Venmo users can transfer money to other Venmo accounts from a bank account or Venmo balance. Transferring money from a checking account is equally simple with PayPal.
You can read our complete guide to interchange fees and rates here.
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FAQs
New Venmo Fees (2024)
Instant Transfers – 1.75% per transaction ($0.25 minimum and $25 maximum) Sending Money With a Credit Card – 3%
Do Venmo and PayPal charge fees? ›
Both Venmo and PayPal allow you to choose a standard transfer speed of one to three days for free, or to upgrade your transfer to take place within seconds for a fee of 1.75% of the money transferred. Both services cap the transfer fee at $25 and stipulate a minimum charge of 25 cents.
How much does Venmo charge for $300? ›
How Venmo Transfer Fees Work
| Buy/sell sum | Venmo service fee |
|---|
| $25 – $74.99 | $1.99 |
| $75 – $200 | $2.49 |
| $200.01 – $1,000 | 1.80% of the total amount |
| $1,000 and more | 1.50% of the total amount |
2 more rowsAug 18, 2023
While PayPal is a superior choice as a payment processing platform for small businesses, Venmo does have some unique features that may be worth considering. If you need multiple team members to have access to your business's payment processing platform, use PayPal. Venmo only allows one user per account.
Will Venmo be taxed in 2024? ›
You can generally avoid paying taxes on Venmo transactions if you sell items for less than you paid. If you sold less than $20,000 worth of items, you shouldn't receive a 1099-K for 2023, but you'll receive one for 2024 if your sales exceed $5,000 as the new reporting requirements phase in.
How do I avoid the Venmo fee? ›
If you use your Venmo account to pay friends or businesses, you can avoid fees by only paying with your Venmo balance or connecting a bank account or debit card instead of a credit card.
How much is the PayPal fee for $100? ›
How much is the PayPal fee for $100? For the most common PayPal fee of 3.49% + $0.49, the fee for a $100 transaction will be $3.98, making the total money received after fees $96.02. Example 1: You send an invoice to a client for $500 to be paid via PayPal Checkout or Guest Checkout.
How do I avoid PayPal fees? ›
How to avoid PayPal fees
- Use the "Friends and Family" option. When sending money through PayPal, you have the option to use the 'Friends and Family' category instead of 'Goods and Services'. ...
- Receive payments in the same currency. ...
- Offer local pickup or delivery options. ...
- Use other payment methods if possible.
Some users, in order to increase their sending limit or as PayPal may determine, may be charged a credit card and debit card link and confirmation fee. This amount will be refunded when you successfully complete the credit card or debit card verification process.
Can I receive $5000 on Venmo? ›
Venmo Weekly Limit
For users who have not completed the procedure, the total amount of transferred funds must not exceed $500 per week, which increases to $5,000 after verification.
We don't charge any fees to open a PayPal account or download the PayPal app. We do charge fees for the following: When you receive payments from a purchase. When you receive payments from outside your country or region.
Why is Venmo charging me $10 per transaction? ›
There will be a fee if you transfer money to your bank account with an Instant Transfer. If you choose an Instant Transfer, Venmo charges one percent (with a minimum fee of 25 cents and a maximum of $10). Standard bank withdrawals, which take 1-3 business days, are always free.
Does Venmo report to the IRS? ›
Venmo's IRS 1099-K tax reporting requirements only pertain to payments received for sales of goods and services and DO NOT apply to friends and family payments. For the tax year 2023, the IRS will require reporting of payment transactions for goods and services sold that exceed $20,000 and 200 transactions.
What are the cons to Venmo? ›
What are the cons of using Venmo?
- Can't make international payments. To use Venmo, you must live in the U.S. and have a U.S. phone number. ...
- Transactions are public by default. ...
- Potential scams and hackers.
Is it free to set up PayPal.Me? Yes! There's no fee to create a PayPal account or a PayPal.Me link.
Is Venmo charging a fee now? ›
Venmo offers a free platform for transferring money between private parties, with options to fund transactions via credit card for a small fee. It's also free to pay for purchases in-store using Venmo (but not by tapping into a credit card.)
Why is Venmo charging $10? ›
There will be a fee if you transfer money to your bank account with an Instant Transfer. If you choose an Instant Transfer, Venmo charges one percent (with a minimum fee of 25 cents and a maximum of $10). Standard bank withdrawals, which take 1-3 business days, are always free.
Does Venmo charge 2.9% fee? ›
Fees vary depending on the payment method. For instance, fees for direct payments from Venmo are 1.9% + $0.10 of the payment total. Meanwhile, contactless payments (Tap to Pay) are 2.29% + $0.10 of the total payment. If there's a promo, the seller pays a fee of 1.9% + $0.10 + the promo redemption fee of 2.9%.
Is Venmo getting taxed? ›
If you don't provide your tax ID prior to your first backup withholding date, Venmo is obligated to send 24% backup withholding to the IRS for all of the payments you received for goods and services for the current tax year. This includes payments you received prior to meeting the reporting threshold.
