PayPal has announced plans to change the fees related to its Instant Transfer offerings for U.S. consumers and merchants on PayPal and Venmo, according to a Thursday (April 21) press release.
Personal accounts on PayPal and consumer and business profiles on Venmo will pay 1.75% of the transfer amount with a minimum fee of 25 cents and a maximum fee of $25. PayPal merchant accounts will retain the existing rate of 1.5% of the transfer amount, change the minimum fee to 50 cents and remove the existing $15 cap for a no-maximum-fee cap structure, the release stated.
The announced changes will take effect for Venmo customers May 23 and for PayPal customers June 17.
“We continue to understand how important it is for PayPal and Venmo customers to have flexibility when accessing their money,” PayPal said in the release. “That’s why we offer options like Instant Transfer, so customers can choose to transfer their money instantly to a bank account or debit card for a fee, as well as Standard Bank Transfers, so customers who can wait a few days can transfer their money for no fee, which will typically arrive within one to three business days.”
Instant Transfer is an expedited version of PayPal’s Standard Bank Transfers.
Earlier this week, Venmo debuted its #VenmoU “Finals Giveaway” of $500,000, letting students earn money as they keep up their schooling.
Read more: Venmo Offers Prizes to College Students in ‘Finals Giveaway’
A study found that around two-thirds of college students work part time, and one in five co-eds works around 30 hours a week. Because of that, Venmo will offer students chances to win as much as $500, and one winner will get $10,000.
Students with Venmo accounts can enter by scanning a QR code posted on campus, giving a phone number and then entering themselves to win.
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Upcoming Changes to PayPal and Venmo Instant Transfer Pricing
- PayPal and Venmo will be rolling out changes in the coming weeks to Instant Transfer fees for both consumers and merchants.
- These pricing changes will be effective for Venmo customers on May 23, 2022 and effective for PayPal customers on June 17, 2022.
In the coming weeks, we will be making changes to our Instant Transfer pricing structure for U.S. consumers and merchants, on both PayPal and Venmo.
We continue to understand how important it is for PayPal and Venmo customers to have flexibility when accessing their money. That’s why we offer options like Instant Transfer, so customers can choose to transfer their money instantly to a bank account or debit card for a fee, as well as Standard Bank Transfers, so customers who can wait a few days can transfer their money for no fee, which will typically arrive within 1-3 business days.
Instant Transfer is a benefit we provide customers outside of Standard Bank Transfers, and we’re making some changes to be more in line with the value we provide.
For personal accounts on PayPal and consumer and business profiles on Venmo, users will pay 1.75% of the transfer amount, with a minimum fee of $0.25 USD and a maximum fee of $25 USD. For PayPal merchant accounts, we will maintain the existing rate of 1.5% of the transfer amount, change the minimum fee to $0.50 USD, and remove the existing $15 USD cap in place of a new, no-maximum-fee cap structure. These pricing changes will be effective for Venmo customers on May 23, 2022. The pricing
changes will be effective for PayPal customers on June 17, 2022.
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No one likes waiting to get their money, especially when you’re stuck waiting for PayPal to process it. Fortunately, PayPal is addressing that today with a new option that will let users instantly transfer funds to their bank account (for a small fee, of course), via TechCrunch.
It’s essentially an expansion of the existing instant money transfer feature that PayPal (and Venmo, which PayPal owns) has offered since 2017. That feature only let users instantly transfer funds from PayPal to a Visa or Mastercard debit cards; the new option will let users move it directly to their banks just like they would with PayPal’s free transfer option, just much faster.
PayPal charges 1 percent for the faster transfer (up to $10 max)
Like the debit card transactions, PayPal says that the “instant” transfers will vary by bank and may take up to 30 minutes to clear, but that’s still far faster than the “one to three business days” that the company quotes for the free, standard transfer. PayPal is also charging the same fee for instant transfers, whether they be to a bank or debit card: 1 percent of the total transaction, maxing out at $10.
The new instant transfer feature for banks is only available in the US for now, and it should be rolling out over the next few weeks. PayPal COO Bill Ready has already commented in an interview with TechCrunch that it’s looking to launch the feature in other countries in the future.