Hot take: Venmo isn't actually free and the math proves it

I was looking at my transactions from last year and found I lost about $180 in Venmo fees alone. Not the instant transfer fees, just the ones they sneak in when you pay with a credit card or when someone sends you money. I read the fine print on their site and it says 1.9% plus 10 cents for credit card payments. Most people I know just tap their card and don't realize that adds up fast. Am I the only one who thinks they hide these costs too well?

3 comments

3 Comments

henderson.vera1mo ago

Flip it around and look at what they cost the person sending money too... Venmo pushes that "pay with debit card" as free but then your bank hits you with overdraft fees if you're not careful. Had a friend last month who thought he was paying rent with his checking account but Venmo processed it as a card transaction instead. Three days later he's got a $35 fee from his bank and Venmo won't even refund their cut. They've got this whole system set up where the real costs get buried in fine print and timing tricks.

the_joel1mo agoMost Upvoted

@henderson.vera You're right, it's the same sneaky design as those "free trial" subscriptions that auto-renew.

the_tara1mo agoMost Upvoted

Oh dear, one of my neighbors lost $60 that way when his paycheck deposit was a day late.