Venmo Instant Transfer Fee
Venmo charges a small percentage fee for accessing the cash in a short time; the feature is called instant transfer. While you can withdraw cash
Venmo charges a small percentage fee for accessing the cash in a short time; the feature is called instant transfer.
While you can withdraw cash from a Venmo account for free by choosing a standard transfer, keep in mind that the funds will take 1 to 3 business days to arrive.
It is crucial to understand the Venmo instant transfer fee before you tap that button so you aren't surprised when the final amount that hits your bank account is slightly lower than your total balance.
What is the Venmo Instant Transfer Fee?
Venmo offers two ways to move money: the Standard Transfer (which is free but slow) and the Instant Transfer. The Instant Transfer allows you to send money to your eligible U.S. bank account or Visa/Mastercard debit card; it is usually transferred within minutes, but sometimes it can take 30 minutes.
Cost Breakdown
As of the latest update, the Venmo instant transfer fee is structured as follows:
- Rate: 1.75% of the total transfer amount.
- Minimum Fee: $0.25 (even if 1.75% of the total is less than a quarter).
- Maximum Fee: $25.00.
Instant Transfer vs. Standard Bank Transfer
Is the fee worth it? That depends on your urgency. Here is how the two options compare:
- Standard Transfer: Free ($0). These transfers rely on the ACH (Automated Clearing House) banking system and typically take 1 to 3 business days to arrive.
- Instant Transfer: 1.75% fee. These funds utilize different payment rails to arrive in your account usually within minutes, though technically Venmo states "within 30 minutes."
How to Use Instant Transfer
Initiating a transfer is simple, but ensuring you don't accidentally select the wrong option requires attention to detail.
Step-by-Step Guide
- Open the Venmo app and go to the "Me" tab (profile icon).
- Tap the "Manage Balance" or "Transfer Money" button.
- Enter the amount you wish to transfer.
- Select "Instant" (you will see the fee calculation displayed on the screen).
- Choose your bank account or debit card.
- Tap the green "Transfer" button to finalize.
Transfer Limits and Timing
Even if you are willing to pay the Venmo instant transfer fee, there are limits to how much you can move at once. While limits vary based on identity verification, the general rolling weekly limit for transfers is typically $999.99 for unverified users and up to $19,999.99 for verified users. Transfers are reviewed for security, which may occasionally cause delays.
Troubleshooting Instant Transfers
Sometimes, you may find that the option to transfer instantly is grayed out or unavailable.
Why can’t I use Instant Transfer?
There are a few reasons why this feature might not be working for you:
- Debit Card Incompatibility: Not all debit cards support instant transfer services (such as Visa Fast Funds or Mastercard Send). If your card isn't supported, you must use the Standard option.
- Network Issues: Occasionally, the bank's network may be down for maintenance.
- Security Flags: If Venmo's automated security system detects unusual activity, it may block an instant transfer to protect your account.
What happens if the transfer fails?
If an Instant Transfer fails, the funds—and the fee—are usually returned to your Venmo balance. However, keep in mind that once a transfer is initiated successfully, it cannot be cancelled.
Alternatives to Instant Transfer
If you want to avoid the 1.75% deduction, consider these alternatives:
- Venmo Debit Card: If you have the physical Venmo Debit Card, you can use your balance directly at stores or ATMs without transferring the money to a bank first.
- Plan Ahead: If you know you have bills due on Friday, initiate a free Standard Transfer on Monday or Tuesday.
- Zelle: If your friend uses Zelle, ask them to pay you there instead. Zelle transfers go directly from bank to bank instantly with no fees.