Venmo raising and adding fees

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Fox Business 29 June, 2021 - 07:28pm 45 views

Is venmo charging transaction fees?

Last week, Venmo announced a new way for users to conduct “goods and services transactions,” giving people with personal accounts the ability to toggle between transaction types. Venmo takes a 1.9% cut of commercial transactions—previously only applicable to registered businesses—plus a 10-cent fee. QuartzVenmo is charging a fee for any business transactions on the app.

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Venmo will soon be adding fees for some previously-free services and hiking existing fees on others, the mobile transaction service informed its customers.

PayPal, the cash app's parent company, also announced forthcoming increases in its own consumer and merchant fees.

In an email to users last week, Venmo informed its customers that starting July 20, "users who receive payments that are identified by senders as for goods and services will be charged a seller transaction fee of 1.9% + $0.10." Such transactions have thus far been free on Venmo except for credit card transactions, which carry a 3% charge on the service.

The company further informed users that its current fees for instant transfers to bank accounts would also be going up soon. Starting Aug. 2, the charge for an instant transfer estimated to take 30 minutes or less will be 1.5% with a minimum fee of $0.25, and a maximum of $15. The current instant transfer fees are at 1% with a $10 maximum. However, slow transfers, which typically take around one to three business days, will remain free on the app.

PayPal explained in a press release that the new ability for users to tag items as "goods and services" on Venmo means those transactions will also be covered by Venmo's Purchase Protection Program. Fees are paid by the seller.

Meanwhile, PayPal itself is hiking its own customer and merchant fees come Aug. 2, when the payment giant will charge 3.49% plus another $0.49 on most transactions. That is up from the current standard fees of 2.9% plus $0.30.

Fast Company's Arianne Cohen pointed out that competitors Apple Pay and Google Pay do not charge transaction fees.

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PayPal, Venmo increasing transaction fees

ABC15 Arizona 31 December, 1969 - 06:00pm

Venmo users will soon see an increase in instant transfers.

The peer-to-peer payment app said that beginning Aug. 2, their pricing fee for instant transfers would increase from 1% to 1.5%.

The way instant transfers work allows consumers to get access to funds and transfer the money to any bank account or debit card within 30 minutes.

Venmo added that it's also increasing its maximum fee from $10 to $15.

Venmo is also increasing its fee for goods and services transactions, the Wall Street Journal reported. Starting July 20, sellers will be charged 1.9% plus 10 cents, the newspaper reported.

This comes as PayPal also announced that it would be raising its transaction fees for most online transactions from 2.9% plus 30 cents per transaction to 3.49% plus 49 cents.

You should never leave a balance in Venmo—here's why

CNBC 29 June, 2021 - 08:41am

If you use your smartphone to send money to friends and family, chances are good that it's happening on Venmo. The peer-to-peer payment service has more than 50 million users in the U.S. who sent nearly $160 billion to each other in 2020. 

But despite the ease with which Venmo allows you to pay rent or split the dinner bill, you should always keep an eye on your Venmo balance and make sure it doesn't get too high.

Here are three reasons why you should always transfer the bulk of your balance to the bank.

Unlike money in your investments or savings account, your Venmo balance isn't working for you. Rather than increasing in value over time, your balance remains the same no matter how long you keep it in the app.

Instead, putting that money into a high-yield savings account will allow it to grow. High-yield accounts currently offer rates as high as 0.6% APY.

Unlike your bank account, your Venmo balance isn't insured by the Federal Deposit Insurance Corp. If your bank were to go under, the government insures up to $250,000. But Venmo has no such guarantees.

That means that in the unlikely event that the service goes down, Venmo isn't responsible for you getting back whatever funds you had sitting in your account. 

It's smarter to minimize your risk by not leaving any significant sums of money in the app.

Because Venmo reviews all of its transfers, you could be left unable to pay a bill because your funds are stuck in limbo.

Venmo says transfers typically arrive to user bank accounts within one to three days, but warns that reviews may cause delays. If rent is due and you don't have access to your funds, that could be a big problem. 

While it may be convenient to keep some cash in Venmo for quick transfers, keep the majority money safe and working for you

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Here's why you need to transfer your Venmo balance

CNBC 29 June, 2021 - 08:39am

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Yes, Venmo is offering $100,000 in payments to users for follows and reposts on social media

WKYC.com 28 June, 2021 - 04:34pm

CLEVELAND — Editor's note: The video above is from a story about the rise in use of contactless payment platforms, which aired in May 2020.

It may seem hard to believe, but the posts circulating on Twitter and Instagram today promising a chance at a piece of a $100,000 payout from Venmo are verified.

While the posts share many of the features that make them look suspiciously like common scams meant to gain followers, a spokesperson for Venmo confirmed to 3News that this is a sanctioned promotion.

The offers appear on both Venmo's verified Twitter and Instagram accounts, dangling the opportunity for one of 200 payments of $500, in exchange for a follow and a repost.

When asked what the motivation might be for Venmo to share such a generous offer, the Venmo representative told 3News:

"We often do various giveaways and promotions for our Venmo community, as a way to surprise and delight our customers. Promotions or giveaways that are shared on our verified Twitter and Instagram accounts are legitimate."

This is part of an initiative called '#VenmoMe' and users are being asked to share their Venmo usernames in hopes of scoring a deposit into their accounts.

Users have to be at least 18 years of age at the time of entry, and have to follow Venmo's account on either Instagram or Twitter, repost the announcement of the drawing, and comment on the post with their Venmo handles by 11:59 PM Pacific to be eligible.

Good luck to those who choose to enter the drawing!

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Venmo Is Giving Away $100,000 on Social Media

Entrepreneur 28 June, 2021 - 04:20pm

If you took to social media at all on Monday, your Instagram stories and Twitter feeds were probably flooded with the logo of popular money-sharing app Venmo.

It wasn’t just because your social media connections are obsessed with the app to the point that they just want to talk about it (though they very well might be) — it turns out the social campaign is a part of a monetary giveaway.

Venmo announced that it will be giving away more than $100,000 to be divided up between 100 lucky social media users, 50 from Instagram and 50 from Twitter.

Each winner will receive $500, with the drawing for the two rounds of winners set to take place throughout the day on June 29.

The giveaway will last until the end of the day Monday, and participants must be 18 or older to enter.

The company announced the contest on its Twitter account, where users can enter to win by simply retweeting the company’s tweet to their own feed and adding their Venmo handle, the hashtag #VenmoMe and tagging the company.

Interested participants can also enter by commenting their Venmo handle on the company’s latest Instagram post before reposting it to their Instagram story.

On both platforms, users must be following the respective @Venmo account to be entered.

The company didn’t specify what exactly the giveaway was for or inspired by, but this marks the second month this year that the app is handing out money, following the #VenmoItForward sweepstakes in April.

Venmo is owned by PayPal, which is up over 74% year over year.

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