Paypal, Venmo announce increase to instant transfer fees in the US

Paypal and Venmo announced on Thursday the changes that will be rolled out regarding the instant transfer fees for US customers. These changes will apply on May 23, 2022 for Venmo customers and June 17, 2022 for PayPal customers. These changes were introduced to be more in line with the value that they are rendering, PayPal said. 

With this feature, customers could easily transfer their money to bank accounts or debit cards for certain fees. Currently, PayPal Consumer Account users pay 1.5% of the transfer amount with a minimum fee of $ 0.25 and a maximum of $15. The same rate applies to Venmo Consumer and Venmo Business Profile account users. With the new instant transfer pricing, these accounts’ transfer fees will be increased to 1.75% of the transfer amount. Further, the existing cap will be raised from $15 to $25. 

Meanwhile, Paypal retains the instant transfer fee for business account users to 15% of the transfer amount. However, the minimum transfer fee was increased from $0.25 to $0.50. Further, the existing $15 cap for the transfer fees was removed. Therefore, there will no longer be a maximum fee-cap structure for the PayPal Business accounts.  

The standard bank transfer in PayPal and Venmo remains free. However, the transaction takes around 1 to 3 business days from the moment you made the request for transfer. This is a bit inconvenient in the era where most transactions where customers use these transfers require quick processing. In such cases, customers would simply have to embrace the higher rates that fees will scrap away from their transfer amount. 

For almost two decades, PayPal focused on the peer-to-peer payments business. However, as competition emerged which best offer involved the ability to instantly cash out to a customer’s bank account, Paypal eventually rolled out its own instant transfer feature in 2017.

Sharron Bennet

Recent Posts

Microsoft releases PowerToys 0.61.1 with no new features

After releasing PowerToys 0.61.0 a few days ago, Microsoft releases PowerToys 0.61.1 to bring more fixes and improvements to improve…

7 hours ago

Microsoft releases Skype 8.86 with new reaction features and more

Microsoft has just released Skype 8.86 for all the supported platforms, adding some new features and bug fixes. Skype 8.86…

7 hours ago

Microsoft updates Edge 104 for Beta Channel users

Microsoft released Edge v104 to Beta Channel users almost a month ago, bringing not-so-important changes for consumers. But yesterday's feature…

10 hours ago

All Microsoft Teams improvements and new features in July 2022

Microsoft is consistently rolling out new features to its products every month, and Microsoft Teams is one of those that…

16 hours ago

5MB Outlook Lite for Android devices is here

[gallery columns="1" size="full" ids="404732"] Despite the advancing tech in smartphones and other devices, a lot of “lite” versions of different…

18 hours ago

Microsoft Rewards Program is now available in 58 countries

Microsoft Rewards is giving everyone the chance to earn prizes by doing their activities within the Microsoft environment. The program…

20 hours ago