![]() ![]() As of today about 60% of US checking/savings accounts can receive RTP. Users using their cards through Venmo to transfer to authorized businesses for purchases do not have to pay this fee. But this fee only applies when users send money to their friends or family. However, RTP isn't yet available to every bank. Yes, Venmo does charge a standard 3 fee on Venmo transactions made with cards. Note: there's a relatively new payment rail in the US called "Real-Time Payments" (RTP) that promises to deliver "instant payments" at a lower cost. However, Visa & Mastercard charge a per transaction fee (%) to Venmo for using their networks, so Venmo must in turn "pass on" the cost to you the consumer. ![]() When companies like Venmo sends payments to your bank, they will typically use ACH because of the lower cost.īut if you want "instant" transfers, then Venmo sends the money using one of the credit card payment rails (Visa or Mastercard). Since they are designed to handle credit card transactions, these networks are designed to operate "instantly" (in real time). More recently, ACH supported "same day" transfers at an increased cost, but it's still not "instant".Īnother common way to send payments is via the credit card networks, e.g., the Visa and Mastercard networks. ![]() The average ACH transfer takes 1-2 days to complete (and can take up to 5 days). While most users add their bank account or debit card as the primary method of sending money to save on transaction fees, users can use a credit card on Venmo. While efficient, ACH payments are not instant. ACH uses a "batch process" - meaning many payment transactions (both debits and credits) can be processed together in batches. In the US, the most common payment rail is called "ACH" (Automated Clearing House). Instant transfers use the credit card networks to send money - which does cost more to use. TL DR: there are several funds transfer mechanisms ("payment rails") in the US. ![]()
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