Introduction:
Venmo is one of the most popular money transactions apps. The app has been trending for quite some time in the United States of America. Vanmo lets you send and receive money quickly. And the best thing is that you can do it by only using your smartphones. Venmo has many amazing and innovative features. One of the best among them is their instant transfer option. This feature helps you to move money from your Venmo account to your bank account within minutes. This makes the transaction of money more fast, easy and super convenient.
Don’t you know if Venmo charges fees for instant transfers?. You need not to worry. In this article, I will be telling you everything you need to know about the fees of Venmo’s instant transfer. I will also be telling you about how much Venmo charges and how these fees are calculated. Moreover, I will be telling you about whether you can avoid them or not. Then what are you waiting for?. Let’s begin the show.
What Are Instant Transfers on Venmo?.
Instant transfer is a very good feature of Venmo. This feature lets you move your money from your Venmo balance to your linked debit card faster. You can also move your money with it to your bank account within 30 minutes. This is very good for you when you need money right away. This is also great if you need quicker money for your groceries, rent, bills or any urgent expense.
Venmo also offers you a standard transfer option that takes 1 to 3 business days which is completely free. But if you are in a hurry, then instant transfer is the way you should go. But this comes at a price for you.
Does Venmo Charge Fees for Instant Transfers?.
The straightforward answer for this question is Yes. Venmo charges you a fee when you use the instant transfer option. The fee is 1.75% of the total amount you transfer. There is also a minimum fee of $0.25 and a maximum fee of $25 per transfer.
Example 1:
Let’s suppose that you transfer $50 instantly. In his case, Venmo will charge you 1.75%, which is $0.88.
Example 2:
Let’s suppose that you transfer $2000 instantly. Then Venmo will charge the maximum fee of $25.
Remember that this fee is automatically deducted from the amount you send. So if you send $100 using instant transfer, then you will receive $98.25 in your bank account.
Why Does Venmo Charge for Instant Transfers?.
Venmo charges an amount of fees for the instant transfers. It is because it partners with banks and card networks to move your money faster than usual. These systems cost Venmo extra to use. And due to this, they pass on some of that amount to the user.
It is like paying for overnight shipping instead of regular mail. Remember that you are not required to do it, but it saves your time if you are in a hurry.
How to Avoid Venmo Instant Transfer Fees?.
If you want to avoid the Venmo instant transfer fee, then you should use other options. These options are:
Use the standard bank transfer option:
You should go for the standard bank transfer to avoid fees. To use it, you should choose “Standard” instead of “Instant” when you are cashing out. After that, you should wait for 1–3 business days and the money will arrive in your bank account without any fee.
Keep in mind that standard transfers are completely free. So if you are not in a rush, then this is the better option.
When Should You Use Instant Transfer?.
You should use the instant transfer option when you need money right away. You should also use it when you are covering an emergency expense. You should use it when you don’t mind paying a small fee for the speeding process.
But if it is not urgent, then you should use the standard transfers option. It is because this will save you money in the long run.
Which Cards and Banks Are Eligible for Instant Transfer?.
Not all cards or banks support Venmo’s instant transfers. You can only use this feature if you have linked a Visa or a Mastercard debit card that is eligible for instant transfer. You can also use it for a participating bank account that supports fast payouts.
If your card or bank does not support this, then Venmo will let you know during the transfer process. In that case, you will have to use the standard transfer.
How to Check the Fee Before Transferring?.
Before you finalize an instant transfer, Venmo will show you the exact fee. You will see the breakdown of your fee like this:
- Transfer amount: $100
- Fee (1.75%): $1.75
- You will receive: $98.25
In this way, you know exactly how much money you will get after the fee is taken out.
Is It Safe to Use Venmo for Instant Transfers?.
Yes. Venmo is very safe to use. It uses bank-level encryption for the protection of your money. The platform also has advanced security features to protect your financial data. So if you use it for standard or instant transfer, don’t worry as your information is always secure.
If you want it to be more secure, then you should enable two-factor authentication (2FA). You should also use a strong password and keep your app updated. This will add an extra layer of security to your account.
Conclusion:
Venmo is a great online money transaction platform. The platform is very famous among users from different states of the U.S. It has many amazing and interesting features. Venmo offers you to transfer your money instantly to your bank account. But it charges some fees for these instant transfers. This fee is 1.75%, with a $0.25 minimum and a $25 maximum. So if you are in a rush and do not mind paying a small fee, then instant transfer is very useful. But if you can wait a few days, then you should go for a standard transfer. It is because this is 100% free and a smart way to save money.
FAQS:
Q: How much does Venmo charge for instant transfer?.
Ans: Venmo charges 1.75% of the transfer amount. The platform charges a minimum fee of $0.25 and a maximum fee of $25.
Q: Can I avoid Venmo’s instant transfer fee?.
Ans: Yes. You can use the standard transfer option instead. This will take 1–3 business days but is completely free.
Q: Is the Venmo instant transfer fee worth it?.
Ans: If you need money fast, then it can be worth paying a small fee. But for non-urgent transfers, the standard (free) option is better.
Q: Does Venmo charge fees to receive money?.
Ans: No. Receiving money on Venmo is always free no matter how much someone sends you.
