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Most people trust that Venmo instantly sends and receives money to their friends and family. But if you’ve taken a look at the app’s other features, you’ll notice that there’s a lot more that the mobile payment service offers – such as the Venmo credit card.
With the non-annual fee and the contactless Venmo credit card, users can participate in a tailor-made rewards program that earns them money back in the place where they spend the most. From the Venmo app, cardholders can then redeem their rewards for paying their credit card bills, completing Venmo requests, paying authorized resellers, withdrawing to their bank account and even buying crypto.
In addition to the card being automatically added as a payment method in your Venmo app, you can also use your Venmo credit card wherever Visa® credit cards are accepted. In addition, your friends can easily “Venmo” you or request an on-site payment by simply scanning the QR code on your Venmo credit card.
Below, Select divides the rewards, benefits, and fees associated with the Venmo credit card to help you decide if it’s the right card for you.
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Venmo Credit Card Review
Venmo credit card
Information about the Venmo credit card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
3% back on the category where you spend the most, 2% back on the second highest category and 1% back on all other purchases
Balance transfer fee
Foreign transaction fee
Benefits and perks
Venmo cardholders earn money back every month based on their personal spending: they will automatically earn 3% cash back on the top eligible top spending category, 2% on the next and 1% on the rest.
This could for example look like earning 3% back on groceries, 2% back on bills and utilities and 1% back on everything else if those were your best expense categories. Eligible categories of expenditure are expansive, including bills and utilities, restaurants and nightlife, entertainment, gas, groceries, health and beauty, transportation and travel.
For those who do not want to wait for the physical Venmo credit card to arrive in the mail, Venmo offers instant access once you are authenticated with a virtual card number. And if your card is compromised, you can reset your virtual card number.
As part of the Visa network, the Venmo credit card also comes with Visa Signature® card benefits, such as zero liability policy, lost or stolen card replacement, emergency cash assistance, Roadside Dispatch® assistance program, travel and emergency services, Visa Luxury Hotel Collection benefits (such as room upgrades , when available), Audi discounts on rental cars and 24/7 Visa Concierge to help make reservations, reservations or gift purchases. You can read more about Visa Signature benefits on Venmo’s website.
Although Venmo does not offer a welcome bonus for its credit card, you can see if you are eligible for a special offer by checking the credit card section of your Venmo app.
How to earn and redeem money back
Make Money Back With Your Venmo Credit Card
Choose calculated how many rewards the average American can earn if they optimize the way they use their Venmo credit card. We worked with the location intelligence firm Esri, which gave us an example of an annual spending budget of $ 22,126.
The budget includes six main categories: groceries ($ 5,174), gas ($ 2,218), dining ($ 3,675), travel ($ 2,244), utilities ($ 4,862), and general shopping ($ 3,953). Here is an overview of how much money back you would earn with the Venmo credit card.
- Groceries (3%): $ 155
- Gas (1%): $ 22
- Eating out (1%): $ 36
- Travel (1%): $ 22
- Utilities (2%): $ 97
- General purchases: 39 USD
- Total: $ 371
With all the expenses taken into account, you could end up earning around $ 371 within the first year. Over a five-year period, cardholders can potentially earn $ 1,855, though the total amount will depend on a person’s annual spending habits.
Redemption of Venmo credit card cash back
Venmo automatically calculates your cashback rewards, so it’s pretty convenient to keep track of your own spending. Your earned cash back will be reflected in your Venmo account at the end of each inventory period, and your top expense categories will be reset each month, tailored to your personal spending.
There are a few ways you can redeem your money back, from using it to make purchases at authorized Venmo resellers, to redeeming to pay off your credit card bill or completing Venmo requests. You can also take the money back and deposit it directly into your bank account.
As a bonus, Venmo cardholders interested in digital currency can redeem their cash back rewards for buying crypto. Simply turn on the “buy crypto” feature through the app and choose from the four available cryptocurrency tokens. Once your cashback is transferred to your Venmo account at the end of each month, Venmo will use it to automatically purchase crypto at no transaction fee. However, users will still incur fees for any crypto bought or sold outside of the cash-back feature.
Prices and fees
The Venmo credit card has a regular variable APR of 15.24% to 24.24%.
There is no annual fee and no foreign transaction fees. Late payment fees can be up to $ 40.
Please note that the Venmo credit card, like the use of other credit cards, is subject to Venmo’s standard 3% fee when used to make person-to-person payments.
If you are considering the Venmo credit card, you are probably already an avid user of the Venmo app. But is its credit card the best way out there to make money back? Here’s how the Venmo credit card measures up to two other credit cards that offer money on your spending.
Venmo Credit Card Vs. PayPal Cashback Mastercard®
PayPal Cashback Mastercard® is a straightforward cashback card that gives a fixed rate of 2% cash back on all purchases. The money back you earn goes directly into your PayPal account and the card has no annual fee.
If you use PayPal more than Venmo, or vice versa, it’s probably worth going with their respective credit cards. While the Venmo credit card’s cash-back earnings are based on consumption categories, 3% cashback on your eligible top expense category and 2% on the next top category, it may be worth it over a flat 2% cashback rate across the board. You can analyze your spending habits to see which one can provide more rewards.
Venmo Credit Card Vs. Chase Freedom Flex℠
Chase Freedom Flex℠ is another cashback card that gives up to 5% back on selected purchases. Cardholders earn cash back for every purchase: 5% cash back of up to $ 1,500 on combined purchases in bonus categories each quarter they activate. Plus, earn 5% cash back on travel purchased through Chase, 3% on dining including takeaway and pharmacies and 1% on all other purchases.
There is no annual fee and new cardholders can earn a $ 200 bonus after spending $ 500 on purchases in their first three months of account opening.
Chase Freedom Flex offers a more robust cashback program at a higher rate, but pay attention to the rotating bonus categories to first see if they make sense for your spending. Take a look at the Chase Freedom 5% cashback calendar and its previous bonus categories – previous categories include Amazon, grocery stores, Walmart and more. The money back you can earn along with the welcome bonus can make the Chase Freedom Flex a better choice than the Venmo credit card.
Chase Freedom Flex℠
5% cash back up to $ 1,500 in combined purchases in bonus categories each quarter you activate (then 1%), 5% cash back on trips booked through Chase Ultimate Rewards®, 3% on pharmacy purchases and dining (including takeaway and qualified delivery services) .1% cash back on all other purchases
$ 200 cash back after spending $ 500 on purchases in your first three months from account opening
0% in the first 15 months from account opening for purchases and balance transfers
15.24% to 23.99% variable
Balance transfer fee
Introductory fee of either $ 5 or 3% of the amount of each transfer, whichever is greater, for transfers made within 60 days of account opening. Then either $ 5 or 5% of the amount for each transfer, whichever is greater.
Foreign transaction fee
Who is the Venmo credit card best for
If you are a frequent user of Venmo, the Venmo credit card may be worth considering if you want to centralize your financial life in the app. In addition to the credit card, Venmo also allows you to have a debit card and receive your direct deposit to your Venmo account. You can manage your credit card and Venmo balance in the app while using your cashback rewards to pay your friends, use with authorized Venmo dealers or set off your credit card bill.
The card can also be appealing to those who want their bonus reward categories to automatically adjust to their monthly spending habits.
Editorial note: Opinions, analyzes, reviews or recommendations expressed in this article are solely those of the Select editorial staff and have not been reviewed, endorsed or otherwise endorsed by any third party.