Banking and Finance

A Breakdown of Google Pay Fees

July 27, 2021

So, you've had your eye on Google Pay. You see that it’s got a pretty good rating in the app stores (and perhaps you’ve checked out our article on Google Pay vs. Samsung Pay vs. Apple Pay). But, you're not sure about the fees associated with using it though and don't know which ones to be concerned about? 

Not to worry! We’re here to break down what some of the most common Google Pay fees are for you so that you can figure out whether this is a payment method that will work for you or even your business.

For starters, there's no flat fee per transaction if you’re just sending or receiving money from friends or family. However, depending on your method of payment (if you’ve connected a credit card vs. a debit card, for example), and a few other factors, you might find that you’ll have to pay a fee to use Google Pay.

Read on to learn more about the costs of using Google Pay.

What is Google Pay?

Google Pay is a free digital payment platform and app that allows you to send and receive money from your contacts, pay for online or in-person purchases with just one tap, and withdraw cash at any ATM. Google Pay also offers rewards points on select cards when you use the Google Wallet app.

Currently, Google Pay is available for both Android and Apple users. However, to use Google Pay with an Apple phone, you have to have iOS version 11 or later.

Which Banks Support Google Pay?

You can currently use Google Pay to make payments from your phone using NFC technology in 40 countries. However, the list of banks that work with Google Pay is much longer. In the United States, you can expect it to work with all of the traditional banks, including:

  • Bank of America
  • Capital One
  • Citi
  • Chase
  • TD Bank
  • Wells Fargo

Here is a list of all the banks that currently work with Google Play.

How to Set Up Google Pay

If you have an Android phone then Google Pay should come pre-installed in your phone (similarly, by the way, if you have an Apple phone, Apple Pay now comes pre-installed in newer phones). If you don’t have it on your phone already, go ahead and download it!

Setup after that is pretty easy. All you have to do is connect a bank account, credit card, or debit card to the app (you can also, in some instances, connect a gift card). After you link your account, the app’s ready to use.

When you go to pay, you open the app and Google Pay will validate your bank information to create a one-time-use digital token. The bank approves the transaction and the merchant accepts your information. All you really need to do, however, is open the app and use the NFC technology it relies on. Simply place your phone near the point-of-sale system and wait for the quick approval.

Does Google Pay Charge Fees?

There’s no feed to download Google Pay or to create and manage an account!

Previously, Google Pay allowed you to also make free peer-to-peer web payments (in the same style that PayPal currently does). However, at the beginning of 2021, they changed this and started to charge a fee to make these types of transfers. 

This means that, if you want to easily send or receive money from friends or family, you’ll, first of all, have to download the app to do so. Then, you’ll be charged $0.31 or 1.5% of the total transaction (whichever is greater).

It’s also important to note, however, that you’re not allowed to transfer money via a credit card. To perform a money transfer to your mom or roommate, for example, you have to link a valid debit card.

The Most Common Google Pay Fees

Transaction Fees with Credit Cards

If you connect a credit card to Google Pay, your credit card provider might charge a fee to the merchant, which can be up to 4%. In this case, a merchant can pass the fee onto you on top of charging you another transaction fee, meaning that you could end up paying up to 6% per transaction just to purchase something.

It’s best to check with merchants before you checkout using Google Pay, and it’s always best to have a linked debit card or bank account so that you can avoid the costly fees in these types of situations.

Money Transfer Fees

As mentioned above, it’s no longer free to send money to friends or family via Google Pay. However, the transaction fee is minimal. For each money transfer you initiate, you’ll be charged $0.31 or 1.5% of the total transaction (whichever is greater).

In this case, if you’re sending large amounts of money (the maximum amount you can pay out per rolling seven-day period is $5,000), it might make more sense to look for another payment app that has lower transfer fees.

Google Pay Fees for Businesses

Good news! Unlike PayPal, which charges fees and has different rules for PayPal Business accounts, Google Pay doesn’t currently charge fees for business or commercial payments and deposits. 

They note, however, that it’s up to you to be responsible and “collect and pay taxes such as sales tax, service tax, VAT or any other similar taxes or levies. Google is not responsible for collecting or paying any taxes related to your business.”

Here’s more about how to accept payments via Google Pay as a business.

Alternatives to Google Pay

While Google Pay doesn’t charge extremely high fees for money transfers and, as long as you link a bank account or debit card, is a cost-effective way to pay in stores, you might be looking for another option.

If you’re not interested in using a mobile app to make payments, you’ll still likely find that utilizing an app to store your debit card and make quick payments is helpful. In that case, check out Cheese.

When you download the Cheese mobile banking app from the App Store or the Google Play Store, you can create an account within minutes and start using your digital debit card immediately after. 

This means that you’ll immediately be able to enjoy 10% cashback at select stores, get up to a 3% deposit bonus, and access your paychecks up to two days early. Plus, you’ll get both a physical card to swipe and a virtual card to use when you wanna go contactless.

And, that’s on top of all of the other perks, such as:

❌ No Monthly Fee                                     🧀️ $5 cash bonus    

❌ No ATM Fee                                          🧀️ Up to 10% cashback with every purchase/transaction

❌ No Overdraft Fee                                  🧀️ Potential Double Cheese Cashback

❌ No Insufficient Fund Fee                       🧀️ Up to 3% Saving Bonus

❌ No Minimum Balance Requirement      🧀️ Early Paycheck

❌ No Int. Incoming Wire Transfer Fee      🔐 FDIC Insured

Get Cheese for free today!

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