Venmo Crypto Fees and PayPal's Changes

Venmo's crypto fees have been a topic of discussion among users, with some expressing frustration over the high costs associated with buying and selling cryptocurrencies.

Venmo charges a 1.75% fee for buying cryptocurrencies, which is in addition to the market price of the asset.

This fee can add up quickly, especially for larger purchases.

PayPal, which acquired Venmo in 2020, has been making changes to its crypto offerings, including the introduction of a new fee structure for some users.

Venmo's crypto fees have changed, effective March 21, 2022. The new fees apply to transactions under $200.

Smaller trades are subject to a new flat fee, which varies depending on the amount. For example, purchases between $1 and $4.99 are charged $0.49, while those between $5 and $24.99 are charged $0.99.

Venmo's old fee structure had a minimum fee of $0.50 for transactions under $25, and a percentage fee for larger transactions. The new fees are designed to maximize revenue from the crypto exchange, which has high profit margins.

The new fees are not favorable for small investors, as purchasing an amount on the low end of a bracket results in a higher fee. For instance, a purchase of $10 used to cost $0.50 in fees, but now costs $0.99.

Venmo's new fee schedule is as follows:

The fees for transactions over $200 will stay the same, with a 1.8% fee for transactions under $1,000 and a 1.5% fee for larger transactions.

PayPal's fee changes are worth noting, especially for those who frequently use the platform for crypto transactions. From March 21st, all crypto transactions up to $200 will incur a flat fee.

Purchases between $1 and $4.99 will now be charged $0.49 for each purchase, with no exceptions. This is a change from the previous fee structure.

Transactions of $5 up to $24.99 will be charged a flat fee of $0.99. This is a relatively small increase for users who typically make transactions in this range.

Moving higher, transactions between $25 and $74.99 will attract a flat fee of $1.99. This is a more substantial increase for users who make larger transactions.

For transactions between $75 and $200, the flat fee charge will be $2.49 for all users. This is a significant increase for users who make large transactions.

The new flat-fee charges could be beneficial for some, while also becoming more expensive to transact for others. Users who carry out smaller transactions would find themselves paying more.

Transactions larger than $200 will see no change to their fee structure. The flat fee rates for transactions under $1,000 remain a 1.8% fee, and 1.5% for transactions greater than $1,000.