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
View Comments (30)
Well that sucks!
Most of the time, the free transfers are next business day anyway, so not an issue for me.
Why pay fees when you can earn rewards? Metal Pay rewards you cashback for making transactions.
You earn back crypto currency, not cash, right?
You earn cryptocurrency, but it's just as good as cash. You can sell the cryptocurrency you earn for cash if you want, and cash it out to your bank.
Anyone knows how to get rid of the stupid AMEX prepaid giftcards (apart from regular spend), like on Venmo/Circlepay/Zelle or Google pay?
No way besides regular spent as far as I know.
PAYPAL/VENMO should be nuked from the orbit.
Zelle is instant and free. No thanks venmo/paypal.
+1
Cap is at least a little releaving but still not good at all.
PayPal at least has a $10 limit to the 1% fee, so transfers over $1,000 get a bit of a break.
The fee before this was $0.25. So everyone gets screwed. Now it's $0.25 minimum and 1% up to $10.00 fee.
Well i dont pay these fees on principal. I always keep a bank account i dont care about linked to venmo for this reason. Im okay with waiting.
Still surprised they send me this despite freezing my account (hell, they even sent me their debit card)