Venmo is one of the most widely used money transfer apps in the United States, with over 70,000 users as of 2021. It’s commonly used to send money between friends and family.
Of course, when you send money to someone, you’d like to avoid hidden fees or subscriptions. So, is Venmo actually free? This article will tell you all you need to know, so keep reading!
Does Venmo Cost Money?
Venmo is free to download and use, but there are some fees you may come across in 2023. If you send someone money, there is no fee. However, if you make an instant transfer to your bank, withdraw cash using a Venmo debit card, or use a linked credit card to make a payment, you’ll be charged fees.
There are a few other Venmo fees you’ll want to look out for, so keep reading to learn all about this topic and how you can be smart while using Venmo!
What Fees Does Venmo Charge?
One of the most common Venmo fees is the instant transfer fee.
This is only applied to bank transfers, but if you want money transferred to your account right away, it will cost 1.75% of the transfer amount, with a $25 maximum.
In addition, if you have a business profile on Venmo, the company will take about 1% of all payments you receive for your business.
Another fee to look out for is when you use your credit card. If you link a credit card to Venmo and use it to send money to people, the company will charge a 3% fee.
Also, you should keep in mind that if Venmo covers an overdraft on your account, the debt will automatically be taken out of your Venmo balance when you have more funds.
Insufficient funds resulting in a negative balance on Venmo will mean your account is temporarily frozen.
However, you can fix this by paying Venmo back with a debit card to cover the debt.
Lastly, if you have a Venmo Debit Card, you may want to withdraw funds from your Venmo balance.
Currently, Venmo charges a $2.50 withdrawal fee at ATMs and a $3.00 over the counter fee if you have to sign your name.
How Do I Avoid Venmo Fees?
Avoiding fees on Venmo is actually pretty simple.
Some good practices on Venmo to avoid fees include the following:
- Only selecting standard bank transfers
- Using a debit card instead of a credit card
- Checking your balance to make sure you have sufficient funds
- Avoiding cash withdrawals
Fees on your business profile are unavoidable, but thankfully the rate is relatively low.
Why Did Venmo Charge Me a Fee?
There are several possibilities as to why Venmo charged a fee. You might’ve selected Instant Transfer instead of the 1-3 business days bank transfer.
You may have used a credit card to send someone money on Venmo.
Or, you could have unknowingly over drafted your bank account and Venmo took money from your Venmo balance to cover the cost.
In addition, someone may have accidentally used your business profile to pay you, which will cost you a 1% fee.
How Much Can You Send on Venmo for Free?
Venmo never charges you for sending money to others if you use a debit card or your Venmo balance. If you use a credit card, you’ll be charged 3% of the amount you send.
Weekly sending limits on Venmo are up to $60,000 per week if you use a verified personal account. Your Venmo debit card will be additionally limited.
How Much Does Venmo Charge for Bank Transfers?
Standard bank transfers on Venmo, which take one to three business days, are free of charge. However, instant bank transfers cost 1.75% on Venmo, with a $25 maximum.
How Much Does it Cost to Venmo $1000?
If you send someone $1000 using your Venmo balance or a linked debit card, you won’t be charged any fees. However, if you use a linked credit card, you will be charged 3%.
To know more, you can also read our posts on how Venmo makes money, whether Venmo reports to the IRS, and whether Venmo is owned by PayPal.
Using Venmo is mostly free. There is no monthly subscription, and you won’t be charged for sending money to friends if you use a normal debit card that’s linked to your account.
However, there are several fees you may come across, including business profile fees that apply to money you receive, instant transfer fees, credit card fees, and cash withdrawal fees.