How much does Venmo charge?
Sending and receiving money with friends and family on Venmo is free when you pay from your Venmo balance, a bank account or a debit card. Fees apply in four main cases. Receiving a payment that the sender marks as goods and services on a personal profile costs the seller 2.99%. A business profile pays 1.9% plus 10 cents on each payment, or 2.29% plus 9 cents for Tap to Pay. Sending money with a credit card costs the sender 3%. Moving money out instantly to a bank account or debit card costs 1.75%, with a 25-cent minimum and a $25 maximum.
Personal profile or business profile?
If you sell things or services through Venmo, the business profile is usually cheaper on payments above about $10, because 1.9% plus 10 cents is lower than 2.99% once the fixed amount stops mattering. On a $100 sale the business profile fee is $2.00, while the personal goods and services fee is $2.99. On a $5 sale the business fee is $0.20, and the personal fee is about $0.15, so personal can be cheaper for very small payments. The calculator shows both so you can compare.
Using friends and family payments to avoid seller fees is risky for sales. These payments do not get purchase protection, and Venmo can restrict accounts that use them for business.
Instant Transfer vs standard transfer
A standard transfer to your bank is free but takes a business day or more. An instant transfer reaches a bank account or debit card in minutes for 1.75%. On a $100 balance that is $1.75, and on a $2,000 balance the fee is capped at $25. If you are not in a hurry, choose the standard option and keep the fee.
Taxes on Venmo income
Money you earn through Venmo is taxable income, even if no form is sent to you. Payment apps report to the IRS when you pass reporting limits, and those limits have changed in recent years. Keep your own records, and use our self-employment tax calculator to estimate what to set aside.