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.