Facebook introduced a new payments feature in 2015 that allows users to send and receive money through its Messenger app. This provides a convenient way for people to transfer funds to friends and family without fees in many countries. However, there are some important things to consider regarding costs when sending money via Facebook.
Does Facebook charge fees for sending money?
Facebook does not charge any fees to send or receive money through Messenger in the United States and many other countries. The transactions are free for both the sender and recipient. This provides a nice alternative to services like Venmo and PayPal that typically charge a small percentage fee per transaction.
Are there any limits on amounts?
Yes, Facebook does impose some limits on Peer-to-Peer payments via Messenger:
- The maximum amount you can send in one transaction is $10,000.
- There is a rolling limit of $10,000 in payments you can send over a 7 day period.
- There is a monthly limit of $20,000 in total payments sent.
These limits are fairly generous for person-to-person transactions between friends and family. For larger business or commercial transactions, a different payment provider would be more suitable.
Does it cost anything to receive money?
No, there are no fees charged to the recipient of funds sent through Facebook. The person receiving the money gets the full amount that was sent by the sender.
What payment methods can be used?
When sending peer-to-peer payments in Messenger, the money can come from:
- The sender’s debit card or credit card linked to their Facebook account
- The sender’s PayPal account linked to their Facebook account
- The sender’s Facebook Pay balance if they have previously added funds
So no costs are involved for the sender as long as they use one of these funding sources. The payment will be processed as a debit card transaction, PayPal transfer, or Facebook Pay balance deduction.
How does the recipient get the money?
The recipient has a few options for receiving the money sent to them through Facebook Messenger:
- Transfer to their bank account linked to Facebook: No fee, arrives in 1-3 business days
- Store as Facebook Pay balance: No fee, can use for payments within Messenger
- Transfer to their debit card: No fee, arrives almost instantly
There are no costs imposed by Facebook for the recipient to collect the money using any of these methods. The cash is made available to them for free.
Can Facebook payments be used internationally?
Yes, Facebook payments through Messenger work between different countries. However, there may be some limitations or extra fees in certain international transfers.
Here are some things to keep in mind:
- Both the sender and recipient need to have international payments enabled in their Facebook Pay settings.
- A foreign transaction fee of 3% may apply if the sender’s debit card charges this type of fee.
- Currencies will be automatically converted using daily exchange rates.
- Some countries restrict international peer-to-peer payments entirely due to local regulations.
So for most international transactions, a foreign transaction fee charged by the bank may be the only cost involved when sending cross-border payments via Facebook.
Does Facebook report payments to tax authorities?
For users in the United States, Facebook is required to report payments received through Messenger to the Internal Revenue Service (IRS) if the amount exceeds $600 in a single year.
This is due to tax regulations that require reporting payments received through third-party payment networks such as Facebook Pay.
If you receive more than $600 total through Messenger in a calendar year, Facebook will issue a 1099-K form detailing the payments and provide a copy to the IRS. You may owe taxes on this income if it is taxable.
Payments sent through Messenger are generally not reportable to the IRS. Only the recipient of funds exceeding $600 annually receives a 1099-K form.
Pros of sending money via Facebook
Here are some of the main benefits of using Facebook Messenger for peer-to-peer payments:
- Free and fast transfers
- Convenience of staying within Messenger app
- Works great for sending money to Facebook friends and family
- Good payment reminders and tracking
- Easy to send money internationally
Cons of sending money via Facebook
Some drawbacks or limitations to keep in mind include:
- Sending limits could be restrictive for large transfers
- Need a Facebook account to participate
- Less protection compared to credit card purchases
- Recipient needs to provide bank details or card number
- Potential foreign transaction fees on international payments
Conclusion
In summary, there are typically no fees charged by Facebook to send or receive money through Messenger in the U.S. and many other countries. Limits on transaction sizes apply and any foreign transaction fees would be charged by the user’s bank, not Facebook. The convenience and simplicity of Messenger payments comes with some trade-offs around protections compared to credit card payments. But for casual peer-to-peer transfers, it provides a free and easy option.
| Payment Provider | Typical Fees? |
|---|---|
| Facebook Messenger | No fees charged by Facebook |
| PayPal | 2.9% + $0.30 per transaction |
| Venmo (Owned by PayPal) | 3% for credit card payments |
| Zelle | No fees |
This table compares Facebook Messenger fees to some other leading peer-to-peer payment apps. Facebook and Zelle lead as the only two options with no fees at all. PayPal and its subsidiary Venmo charge a percentage of each transaction in addition to a flat fee per payment.
Facebook Messenger Payment Limits
| Transaction limit | $10,000 per transaction |
|---|---|
| 7 Day rolling limit | $10,000 in payments over 7 days |
| Monthly limit | $20,000 in total payments per month |
This table shows the maximum sending limits imposed on peer-to-peer Facebook Messenger payments. These provide reasonable allowance for personal transactions but may be restrictive for larger business transfers.
Cost to Receive Money via Facebook
| Payout Method | Fee? |
|---|---|
| Bank Account Transfer | No fee |
| Store as Facebook Pay Balance | No fee |
| Transfer to Debit Card | No fee |
There are no fees charged by Facebook for the recipient to collect money sent through Messenger, regardless of payout method. The recipient gets the full amount free.
How Facebook Messenger payments work
Facebook Messenger payments utilize the Facebook Pay system to transfer money between users seamlessly. Here is an overview of how the process works:
- The sender initiates a payment within a Messenger chat by selecting the payments option.
- The sender enters the amount to send and selects a funding source such as a linked card.
- The recipient is notified of the payment and asked to select a payout method.
- Facebook handles the money movement securely between parties with no fees.
- The sender sees confirmation when the transfer is completed.
Payments within Messenger leverage the user’s existing payments credentials, such as a debit card or PayPal account, to enable quick peer-to-peer money transfers. Everything happens within the app for convenient access on mobile devices.
What types of transfers is Messenger payments suitable for?
Facebook Messenger excels at casual payments between friends and family such as:
- Splitting shared bills or expenses
- Chipping in for group gifts or events
- Paying back a friend who covered you
- Allowances or gifts to kids away at college
- Reimbursements for items bought on someone’s behalf
The social integration with Messenger makes it easy to handle payments among groups already connected on Facebook. For more formal business or commercial purposes, a dedicated payment processor may be better suited.
Is it safe to send money through Facebook Messenger?
Yes, Facebook Messenger payments utilize secure systems and encryption to keep your money and information safe as it is transferred. Specifically:
- Bank account and card details are encrypted and not shared with other users.
- Messenger chats are encrypted end-to-end by default.
- Multi-factor authentication can be enabled for added account security.
- Suspicious account activity or payments will trigger alerts and locks.
- Facebook Pay adheres to strict financial regulations and oversight.
The integration with Messenger’s encrypted chat system provides a high level of safety around payment information and activity. Users should still take precautions like avoiding suspicious links and protecting their login credentials.
What are the pros and cons compared to other payment apps?
Pros
- Seamless integration within Facebook Messenger app
- Leverages existing connections and communities on Facebook
- Free transfers with no balance minimums to maintain
- Easy tracking and reminders around payments
- Ability to store balance for future use
Cons
- Need a Facebook account, not standalone service
- Maximum transfer limits could be restricting
- Less purchase protection compared to credit card payments
- Required to collect recipient’s details to pay them
- Can’t earn rewards like some other apps allow
Conclusion
Facebook Messenger provides a free, convenient way to transfer money to friends and family. There are no fees charged by Facebook for peer-to-peer payments, which is a major benefit compared to services like PayPal and Venmo. Limits on maximum amounts apply and recipients have to provide details to get paid. Overall, Messenger payments offer a nice option for casual transfers between Facebook users, but may not suit larger business transactions or strangers. The integration and ease of use are the key advantages that make it useful for personal connections.