The instant transfer fees for consumers and merchants of PayPal and Venmo are expected to increase in the United States. Users are expected to see an increase leading to a 1.75% fee for PayPal and a 1.5% fee for Venmo.
PayPal and Venmo to See Increase in Fees for Instant Money Transfers
PayPal recently announced that both them and Venmo will be increasing their consumer and merchant instant transfer fees. The instant transfers allow users to send money instantly for a premium fee.
The transfer fee is applicable for money instantly sent to bank accounts or debit cards. Personal PayPal accounts and Venmo consumer and business profiles will see users pay a transfer fee of 1.75%.
PayPal Retains 1.5% Transfer Fee but Increases Minimum Transfer Amount
According to the story by TechCrunch, the smallest amount users are set to pay is $0.25, with the maximum amount being $25. Before the increase, PayPal personal accounts and Venmo consumer and business profiles saw a 1.5% transfer amount.
The previous fees charged a minimum of $0.25, going all the way to $15. When it comes to merchant accounts, however, PayPal will be keeping its 1.5% transfer fee but will change its minimum fee from $0.25 to $0.50.
PayPal to See No Maximum Fee Payment Structure
The new implementations by PayPal will see the removal of the existing fee cap of $15 to a new "no-maximum fee" type of structure. Venmo customers are set to see the new price increase on May 23, while PayPal users are expected to see the increase on June 17.
During PayPal's announcement, the company said that it will be implementing the price change in order for the company to be more in line with the provided value. Regular users of both PayPal's and Venmo's services will be seeing a larger amount going towards the fees.
Instant Transfer Fee Increase Announced in 2017
Users, however, still have an option to send transfers for free on both services. The downside, however, is that they would have to send the typical bank transfer that arrives in one to three days after the transfer has been requested.
The instant transfer fee increase was initially announced back in 2017 by PayPal and Venmo. TechCrunch stated that for about two decades, PayPal has been in the peer-to-peer payments business.
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App Users Take Advantage of Instant 'Cash Out' Feature
The company was first challenged by how newcomers were trying to take advantage of the platform's feature to allow "cash out" instantly to bank accounts. This reportedly led to the implementation of the newer version of the feature by PayPal.
Money transfer feature is one of PayPal's top-selling points allowing its users to see funds transferred instantly to other users all across the globe. Unlike other providers, PayPal and Venmo's instant fund transfers is what makes it stand out.
Related Article: PayPal to Offer 3% Cashback Through Credit Card: Here's How to Get It
This article is owned by Tech Times
Written by Urian B.
