Venmo fees? What are they and how much does Venmo charge? All the information regarding Venmo fees has been covered in this article. Read on to know more about Venmo and Venmo fees!
Before knowing about Venmo fees, it is helpful to have a basic understanding of Venmo and its background. Venmo was found in 2009 and was used as a mobile payment service. It was introduced to solve the problems of spitting the bills among friends who hang out at movies, restaurants, etc. A group of friends who hang out a little often would understand the pain in splitting the bills, as a person might always pay more or less than their equal share, and money as cash is not always in people’s wallets. So according to the company, Venmo is an app for money transfer or a peer-to-peer transaction service, which enhances friendships and not complicates them.
Andrew Kortina and Iqram Magdon Ismail were the founders of the company Venmo. The idea to set up a mobile payment service gradually took shape and developed in the lives of Kortina and Iqram. While visiting a jazz show, the founders had an idea of how easy it would be to buy an mp3 of the show with just a show of text message. Later, when Kortina went to meet Iqram, he forgot his wallet and that experience really had an impact on them. Storing money always in a physical wallet seemed to become harder and harder with a lot of shortcomings too. All these experiences pushed the founders to create a mobile payment service with wallets too.
TIMELINE OF VENMO:
Their company was acquired by Braintree, another mobile payment service corporation, at a rate of $26.2 million in 2012. Later in 2013, the online payment service giant Paypal decided to acquire the company Braintree at $800 million. In 2016, Paypal announced that merchants can now start to accept Venmo as a payment method and opened it up to the public. It has also been found that across some of the popular restaurants in New York City, the usage of the app Venmo has increased exponentially for money transactions in 2018. According to the company’s first-quarter report of 2018, Venmo handled $159 billion in transactions in the first quarter of 2018.
The company Paypal announced in October 2020 that the services of Paypal, along with Venmo, will allow the users to buy, sell and hold cryptocurrencies like Bitcoin, Ethereum and Dogecoin in the start of 2021. Cryptocurrencies are decentralized digital currencies that can be used as payment methods too. Later in April of 2021, Venmo announced that it has started to allow its users to purchase, trade, and invest in cryptocurrencies. But the features were only for a limited amount of users and were not completely opened up to the public.
In May 2021, Venmo has planned to completely open up their services of cryptocurrencies and as the recent news, Venmo has also allowed for the withdrawals of cryptocurrencies into third-party wallets. This move will pull more investments into the cryptocurrency space and also increase the easy usage of Venmo as the app for purchasing cryptocurrencies. Read on to know more about Venmo fees.
Venmo debit card:
The company Venmo decided to come up with its own debit card in 2018. Venmo rolled out their debit card feature with the use of Mastercard. As a Mastercard, Venmo debit card can be used anywhere the Mastercard services are offered. Introducing their own debit cards was a great move by the Venmo Company and it helped the users to have a physical presence of their money. The debit card uses the money stored in the user’s Venmo account and helps in transacting the same money physically.
This move also had brought several perks for the debit card users of Venmo. It provides them with a lot of cashback offers regularly. It makes the process of addition of money to the Venmo account a lot easier. Also, the Venmo debit cards can be used to just tap and let the money process, instead of inserting the card or swiping. This made the transaction a lot more time-efficient and simple. The ATM access provided by the Venmo debit card is an important feature. With all these features, it is normal to also charge Venmo fees for these products. Read to know more about Venmo fees.
Any transaction service, including the recent cryptocurrency, always levies transaction fees for their service. So for a popular company like Venmo, it is expected of Venmo fees for transactions. But like many other companies, the company does not charge Venmo fees for a lot of simple, regular money transactions. So let us just list out all the services for which the company charges Venmo fees. Few services come with a small amount of transaction fee.
Transactions with Venmo fees:
- Sending money to someone else using the credit card. Venmo fees are charged at 3% for this service.
- Adding money to your account using the Cash a check feature. This type of transaction is used to deposit payrolls or government checks (with pre-printed signs) within a very quick time using the Venmo app. Venmo fees are charged at 1.0% (minimum of $5 fees) for this service.
- Adding money to your account using the Cash a check feature with non-payroll and non-governmental checks. This type of deposit of non-payroll and non-governmental checks are performed within a very short span of time using the Venmo app. The Venmo fees are charged at 5% (minimum of $5 fees) for this service.
- For receiving the money to the business profiles from Venmo users, the Venmo fees are charged at 1.9% + $0.10
- While transferring money from your account, performing an electronic withdrawal with the instant transfer is charged Venmo fees at 1% (minimum $0.25 fee, maximum $10 fee).
- The image below will explain the Venmo fees for buying and selling cryptocurrencies through the Venmo app.
That is all for Venmo fees. Always verify the information with the Venmo website while doing a transaction. We hope this article has been helpful to you.
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