According to an announcement made by PayPal on Thursday, Venmo and PayPal will be raising their immediate transfer fees for American consumers and businesses in the next weeks. Customers may pay a charge to rapidly transfer their money to a bank account or debit card.
Users will pay 1.75% of the transfer amount for personal PayPal accounts and consumer and business profiles on Venmo, with a minimum cost of $0.25 and a maximum price of $25. With a minimum price of $0.25 and a maximum fee of $15, immediate transfer pricing for personal accounts on PayPal and consumer and business profiles on Venmo was 1.5% of the transfer amount prior to this adjustment.
The business is keeping the current 1.5% of the transfer amount rate for PayPal merchant accounts, raising the minimum charge to $0.50 from $0.25, and replacing the existing $15 limit with a new no-cost-maximum cap structure.
Customers using Venmo will start seeing the increased price on May 23 and PayPal users will start seeing it on June 17. PayPal said that the pricing adjustments are being made “to be more in line with the value we deliver” in a blog post on the news.
The new adjustments will result in more money being sucked away by fees for consumers who use PayPal and Venmo as a method to make large payments fast or get some much-needed cash into their accounts. The free regular bank transfer option available via PayPal and Venmo takes between one and three business days to complete.
The rapid transfer capabilities of PayPal and Venmo were first introduced in 2017. Although PayPal had been in the peer-to-peer payments industry for about 20 years, it had faced competition from a number of new players, whose main selling point was the ability to “cash out” to your bank account immediately. As a result, PayPal developed its own version of the service.
