Paypal and Venmo Increase Instant-Transfer Fee to 1% (up from $.25)

Update 10/17/18: Paypal now has a notification showing that they’ll be increasing the fee to 1% on November 7th as well. They do put a cap on the fee to $10.

Original Post:

Venmo sent out an email indicating a change in the fee for the instant cash out option. Previously it was a flat $.25. Beginning November 6, it’ll be 1% of the withdrawal amount. You can still withdraw free of charge, it just takes a day or two to come through to your bank.

…we’re adjusting the fee we charge for Instant Transfers.* Effective on or after November 6, 2018, each Instant Transfer will cost 1% of the transfer amount (minimum fee $0.25). We continue to offer our standard bank transfer option free of charge. You can find out more information on this fee change and our other fees on our fees page.

I believe Paypal still charges the flat $.25, though I wouldn’t be surprised to see that increase as well. (IIRC, Paypal business accounts already charge 1%.) It’s useful especially for large withdrawals where you’ll happily pay $.25 to see the money immediately. With the new 1% fee, it’s way less useful.

 

Hat tip to reader YS