PayPal and Venmo to Raise Instant Transfer Fees for US Customers
PayPal is making changes to its Instant Transfer pricing structure for US consumers and merchants within the next few weeks the company announced today that will impact both PayPal and Venmo customers.
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The new pricing will go into effect for Venmo users on May 23 and for PayPal users on June 17, 2022. PayPal didn’t explain why it chose two different effective dates for this pricing adjustment.
For personal accounts on PayPal and consumer and business profiles on Venmo, users will pay 1.75% of the transfer amount, with a minimum fee of $0.25 USD and a maximum fee of $25 USD.
For PayPal merchant accounts, the company will maintain the existing rate of 1.5% of the transfer amount but will change the minimum fee to $0.50 USD and remove the existing $15 USD cap in place of a new, no-maximum-fee cap structure.
Instant Transfer Option Offers Flexibility for PayPal and Venmo Customers at a Price
“We continue to understand how important it is for PayPal and Venmo customers to have flexibility when accessing their money. That’s why we offer options like Instant Transfer, so customers can choose to transfer their money instantly to a bank account or debit card for a fee, as well as Standard Bank Transfers, so customers who can wait a few days can transfer their money for no fee, which will typically arrive within 1-3 business days,” PayPal said in its announcement.
Both PayPal and Venmo have been offering Instant Transfers to bank accounts since 2019, with the original fee being 25 cents or 1%, capped at $10. PayPal acquired Venmo in 2014 as part of an $800 million purchase of payment processor Braintree.
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Richard Meldner
Richard is co-founder of eSeller365. He has over 17 years of experience on eBay which includes tens of thousands of sales to buyers in over 100 countries and even has experience with eBay’s VeRO program enforcing intellectual property rights for a former employer. And for about two years Richard sold products on Amazon using Amazon FBA in the US.
To “relax” from the daily business grind, for a few weekends a year, he also works for IMSA as a professional race official.