Venmo announced it is rolling out an instant money transfer to bank account service without requiring an eligible Visa or Mastercard debit card.
The rollout will start today and should become available to most accounts within the next few weeks.
The cost of the service is the same 1 percent fee as the company charges for using the debit card instant money transfer option (minimum fee $.25, maximum fee $10).
“We’ve seen a great response from the Venmo community, so we’re thrilled to now offer Instant Transfer to your bank account within minutes for the same small fee.”
Instant money transfers should be available in bank accounts within 30 minutes, but that is subject to the account holder’s bank policy.
In addition, Venmo said that transfers are still reviewed which could result in delays or funds being frozen or removed from a user’s Venmo account.
The new Venmo feature is similar to PayPal
For online merchants that accept Venmo through eligible payment gateways, this new instant bank transfer feature is similar to PayPal’s instant money transfer. Venmo is owned by PayPal.
Especially for smaller merchants that often need access to funds quicker to maintain cash flow, his new option could be a great benefit.
The company will continue to offer the free standard transfer option to bank accounts which typically takes about 1 to 3 business day.
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