How Does Venmo Make Money? (Full List of Ways)

Venmo is a popular money transfer app that has been available on Apple and Android devices since 2012. It allows users to send and request money from friends, transfer it to their bank, and pay businesses.

But how does Venmo make money? Well, there are actually more means of revenue for Venmo than you may expect, and this article will tell you all you need to know!

How Does Venmo Make Money in 2024?

There are many ways in which Venmo makes money as a company in 2024. One common way is through the instant transfer service, which charges a percentage rate to each user. In addition, Venmo has fees related to its debit and credit card services, such as interchange fees, withdrawal fees, and credit card fees for paying friends.

There are many more specific ways in which Venmo generates revenue, so keep reading to learn about fees that you should know about as a Venmo user!

1. Instant Transfers

One of the most simple ways Venmo makes money is from fees charged for instant transfers.

If a user wants to instantly transfer funds from their Venmo account to their bank, this will cost a fee of 1.5% of the amount transferred.

Venmo makes a significant amount of money off of people using the instant transfer feature.

The alternative to instant transfers is either leaving the money in your Venmo account or waiting 1-3 business days for the funds to arrive in your checking account.

2. Credit Card Fees

You can link a credit card to your Venmo account and use it to send money to family and friends.

However, this will cost a 3% fee when you use your credit card to send money through Venmo.

This is one of the ways the Venmo app generates revenue. In addition, Venmo cardholders pay annual percentage rates, which depend on the account type and prime rate.

However, keep in mind that there is no fee if you make an online purchase through Venmo using your credit card, as long as it’s a business that accepts Venmo payments.

3. Cash Interest

Venmo loans cash that’s already in the system to various banks. In return, the company receives an average lending fee, or net interest margin. In 2019, the lending fee was 3.35%.

4. Withdrawal Fees

If a Venmo user has an official Venmo Debit Card, they can use it to withdraw cash out of their Venmo balance at an ATM.

However, withdrawing funds from your Venmo balance will cost a $2.50 domestic withdrawal fee and a $3.00 over-the-counter fee.

5. Interchange Fees

5. Interchange Fees

Venmo offers special credit cards to users powered by Visa, and these are accepted at thousands of businesses nationwide.

In addition, Venmo offers a debit card branded by Mastercard.

Both of these are available to Venmo account holders, and can be used in the “real world” to pay for items and services using Venmo balance.

When a customer uses a Venmo credit card to pay at a business, it costs the merchant a percentage of the purchase, along with a $0.10 flat rate.

Venmo makes a lot of money from interchange fees charged to businesses who accept Venmo credit cards. However, this type of fee isn’t charged to the Venmo user.

6. Cash a Check

Cash a Check is a newer feature that allows users to deposit checks into their Venmo account. This includes paychecks and government stimulus checks.

Venmo charges a 1% fee on all payroll and government check deposits, and 5% on all other acceptable checks deposited in Venmo.

To deposit a check, it must have a value between $5 and $5,000.

As well, in order to use this feature, you need to have a verified email address and a direct deposit or official Venmo Debit Card.

7. Cryptocurrency Fees

For transactions that involve buying and trading cryptocurrency on Venmo, there are fees that apply. Note that these fees change depending on how much you spend on crypto.

For example, a purchase of between $25 and $74.99 for cryptocurrency will cost you a $1.99 fee paid to Venmo.

Further, flat-rate dollar fees turn into percentages once you spend over $200 on crypto.

8. Cashback Program

Venmo Debit and Credit Card holders qualify for a cashback program that allows them to earn cash back when they shop at certain vendors that have a deal with Venmo.

When Venmo cardholders shop at these select businesses, Venmo receives a referral commission based on how many customers were gained.

This amount will depend on the agreement made between Venmo and the merchant.

To know more, you can also read our posts on whether or not Venmo works in Canada, how to delete Venmo history, and why is my Venmo account frozen.


Venmo makes money from various types of fees and other aspects of the business model. For example, Venmo Debit and Credit Card users often pay withdrawal and credit card fees.

Businesses pay a percentage fee and flat rate when customers use their Venmo credit card to purchase goods and services. In addition, cashing a check on Venmo will cost 1% of your payroll or government check, or 5% of other accepted checks.

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Marques Thomas

Marques Thomas graduated with a MBA in 2011. Since then, Marques has worked in the retail and consumer service industry as a manager, advisor, and marketer. Marques is also the head writer and founder of

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