Venmo will soon increase fees for services that have never been done before, and will soon be increasing existing fees on other services.
PayPal, the parent company of the Cash app. It has also announced an increase in consumer and store fees.
|PYPL||PayPal Holdings, Inc.||292.76||-0.89||-0.30%|
In an email to users last week, Venmo informed customers that starting July 20, “Users who receive payment specified by the sender for goods and services will be charged a merchant transaction fee of 1.9% + $0.10.” Such transactions through Venmo are free, except for credit card transactions where There is a 3% service charge.
CRYPTOS NOW IS PART OF VENMO OFFERS
The company further informs users that the current fee for instant bank transfers will also increase soon. Starting Aug 2, fees for instant transfers expected to take 30 minutes or less will to 1.5%, with a minimum fee of $0.25 and a maximum of $15. The current instant transfer fee is 1%, with a maximum of $10. However, slow transfers, which usually take one to three business days, will remain free on the app.
PayPal explains in the press release that New ability for users to tag items as “Goods and services” on Venmo means that those transactions are also covered by Venmo’s purchase protection program. Fees are paid by the merchant.
Click here to read more about the FOX business.
PayPal, meanwhile, is raising its own customer and merchant fees on August 2, when the payments giant will charge 3.49 percent plus an additional $0.49 for most transactions. This is a 2.9% increase from the current standard fee, plus $0.30.
Fast Company’s Arianne Cohen points out that competitors like Apple Pay and Google Pay don’t charge transaction fees.