[patio11]

In many cases they’ll be paying 1% of e.g. $40 either to avoid having to think about this any more or because they have extremely toothy consequences to not having the cash today. e.g. The implicit interest rate on an NSF fee if they don’t fund the $10 overdraft currently happening on their checking account due to the rent check being deposited, which they have 3 hours to cover before the cutoff, is on the order of 3.8e200%. ($35 interest to borrow $10 for a day.)

[pbreit]

My sense is that's the vast minority.

I think most of the % fee-based "instant withdrawals" are done without understanding the effective APR. "It's only 1%!"

[moftz]

Venmo used to have a flat fee of $0.25 then they changed it to 1%. I'm guessing for most people, it would never be a problem since most people are usually only sending small amounts to eachother on Venmo (paying someone back for lunch or splitting utilities) but now Paypal gets a larger cut of people doing instant transfer of things like rent payments.