Paypal and Venmo announced on Thursday local time that they will increase the instant transfer fee in the United States.
This change will apply to Venmo customers on May 23, 2022, and PayPal customers on June 17, 2022. PayPal said the changes were introduced to be more in line with the value they presented.
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With this feature, customers can easily transfer funds to a bank account or debit card for a fee. Currently, PayPal consumer account users pay 1.5% of the amount transferred, with a minimum fee of $0.25 and a maximum of $15. The same rates apply to Venmo Consumer and Venmo Business Profile accounts.
After the price increase, the transfer fee for these accounts will increase to 1.75% of the transfer amount. Additionally, the existing cap will be raised from $15 to $ 25.
Meanwhile, Paypal keeps the instant transfer fee for business accounts at 1.5% of the transfer amount. However, the minimum fee has increased from $0.25 to $0.50. In addition, the existing $15 transfer fee cap has been removed. As a result, there will no longer be a maximum fee cap for PayPal business accounts.
Moreover, standard bank transfers in PayPal and Venmo are still free. However, the transaction takes about 1 to 3 business days and maybe a little inconvenient. If in a hurry, customers can only accept higher fees.
