If you're a stylist who accepts tips via Venmo, the mobile payment service's latest fee changes may affect you. According to an article on foxbusiness.com, Venmo announced these changes earlier this month.
In an email to users, Venmo informed its customers that starting July 20, "users who receive payments that are identified by senders as for goods and services will be charged a seller transaction fee of 1.9% + $0.10." Such transactions have thus far been free on Venmo except for credit card transactions, which carry a 3% charge on the service.
In addition to seller transaction fees, current fees for instant transfers to bank accounts will also be going up soon. Starting August 2, the charge for an instant transfer (estimated to take 30 minutes or less) will be 1.5% with a minimum fee of $0.25, and a maximum of $15. The current instant transfer fees are at 1% with a $10 maximum. However, typical transfers, which typically take around one to three business days, will remain free on the app.
PayPal, the cash app's parent company, shared in a press release that the new ability for users to tag items as "goods and services" on Venmo means those transactions will also be covered by Venmo's Purchase Protection Program.