For Venmo transactions, here’s everything you need to know about using your credit card. Mobile apps, such as Venmo, have made it a snap to send money to friends and relatives. When you don’t want to deal with the hassle of transferring cash, Venmo is a convenient alternative. If you want to keep track of your transactions and share them with others, Venmo is the app for you.
When using Venmo, it’s normally advisable to transfer money from a bank account linked to the Venmo service rather than using a credit card, because you will be charged a fee if you do so. Venmo purchases don’t need using a credit card, though. Consider charging your Venmo transaction if you’re looking for the best credit card for the service.
Don’t know which credit cards to use for Venmo transfers? You’ll be better able to make a decision after reading this information.
About Venmo
You can use Venmo to make a variety of different payments, for different purposes. Friends and family members with a Venmo account can be contacted using the app to transfer money to them. Venmo may also be used to pay your business partners. Because PayPal owns Venmo, you may use it to make purchases from merchants who show the PayPal logo.
Venmo allows users to send money to others by entering their Venmo username, phone number, or email address. A credit or debit card or the money in your Venmo balance can all be used to fund your transfer, or you can use your Venmo credit card. Additionally, cash received can be instantly transferred to an associated bank account through your checking account.
Both Android and iOS devices may use the Venmo mobile app. Venmo’s social page displays your transaction, but not the payment amount, which sets it different from other services. Commenters on this feed who use Venmo are often known for making lighthearted posts.
Adding to the convenience, you may use Venmo to identify friends who already have an account by synchronizing your Facebook or phonebook.
Finally, you can even use your Venmo account to invest in cryptocurrencies.
Is there a fee to use Venmo?
The majority of transactions on Venmo are completely free of charge. There
- Free of monthly or yearly charges
- There are no fees associated with receiving money from other Venmo users or with sending money from connected bank accounts.
- There is no charge for using a debit card to transmit money.
- Sending money using a prepaid card is free of charge (depending on the card issuer)
- If you use money from your Venmo balance to send money, there is no cost.
- Reloading your Venmo balance with your bank account has no fees attached to it.
Sending money through a credit card, on the other hand, will cost you 3% of the total amount you send. There is a 3-percent charge on all payments made through Venmo Purchase Support, regardless of how the funds are sent to Venmo.
Purchase Support allows Venmo to assist you in resolving any complaints that may arise from qualifying purchases.
Can you add credit cards to Venmo?
Yes, you can absolutely add a credit card to your Venmo account. As a bonus, you can add a credit card from a specific credit card issuer that lets you earn credit card rewards when using a credit card through your Venmo account.
You can get a rewards credit card that provides you with a variety of perks, such as earning an additional dollar for every dollar spent on everyday purchases that qualify.
Before we cover some of the top credit cards to add to your Venmo account, there’s a few things that you should keep an eye out for, such as any associated fees involved with using a specific credit card.
Which credit cards charge a fee for Venmo?
There are many advantages to using a credit card to pay for things, such as fraud protection and the opportunity to earn rewards, but if you don’t pay off your bills on time, you’ll be charged interest.
However, you should exercise caution when sending money to others using Venmo, as there is a 3 percent charge associated with this method.
Venmo transactions should also be monitored by your card company. Venmo payments may be considered cash advances by some, in which case you may be subject to an extra cash advance cost of up to 5%.
Unlike ordinary purchases, cash advances often carry a higher interest rate and interest begins collecting immediately. In most cases, interest on purchases doesn’t start accruing until a monthly payment is missed.
Unless the benefits you get surpass the fees, it is generally not suggested to use credit cards with Venmo because of the additional charges you might pay.
You may utilize your credit card on Venmo in order to meet the spending requirements for a welcome offer worth tens of thousands of miles or points.
However, in most cases, this is only an option if you have no other means of meeting the required spending thresholds.
Only four credit cards can be linked to your Venmo account in a rolling six-month period, so choose wisely. Every six months, a new card is added to your account and deducted from your allotted four.
The Venmo Credit Card is an option to explore. Customers of Venmo may get this card, which includes a special QR code on the front and can be scanned to swiftly divide purchases, instead of a standard credit card.
Cashback rates are automatically assigned to your purchases depending on your spending history with the Venmo Credit Card.
In other words, if you spend $3,000, you get 3% cashback, $2,000 gets you 2%, and the remainder of your purchases get you 1% cashback. The following are examples of possible expenditures:
- Bills and utilities
- Dining and nightlife
- Entertainment
- Gas
- Grocery
- Health and beauty
- Transportation
- Travel
How credit card issuers code Venmo transactions
Using your credit card to make a Venmo payment might result in a cash advance fee. This fee can’t be determined by Venmo, so it can’t tell you which cards have this fee and how much it costs. Venmo transactions can be coded in a variety of ways by different card issuers.
Venmo transactions are handled by a number of major credit card providers in this way:
- An Amex credit card may be used to make purchases on Venmo.com. They shouldn’t be charged a fee for a cash advance, but this might change. To save expenses, you may also utilize Amex Send.
- Bank of the United States. Venmo charges a cash advance fee if you use a Bank of America card.
- Venmo users who utilize a Barclays credit card will almost certainly be hit with a cash advance charge if they do so.
- As a cash equivalent, Capital One is likely to see a transfer of funds in this manner. Capital One charges a cash advance fee for cash equivalent transactions. In general, Chase considers P2P money transfers, such as Venmo transactions, to be cash advances, therefore they would likely be charged a cash advance fee. Use a Citi credit card to make Venmo payments and you may be charged a cash advance fee.
- Venmo, PayPal, and Square are all examples of mobile payment networks where Discover cards may be used to make purchases rather than cash advances. A cash advance fee should not be charged. This, too, may alter at any time.
- Cash advance fees are often charged when you pay someone on Venmo using a U.S. Bank credit card, so this is something to keep in mind.
- If you use a Wells Fargo credit card on Venmo, you may be charged a cash advance fee.
The best credit cards for Venmo
Because of the 3 percent transaction charge, using a credit card with Venmo may not be the best option. The transaction might be classified as a cash advance, resulting in an additional cost. However, there are times when this makes sense.
The Send & Split option, for example, is available on American Express credit cards. The Transfer option allows you to use your credit card to send money on Venmo without any fees. This strategy does not qualify you for any awards.
However, if you utilize the Split option, you may make a purchase using your credit card, receive the points, and then get paid by pals through Venmo – still without costs.
Blue Cash Everyday® Card from American Express
For daily expenditures, Blue Cash every day is a great option. It offers a 1% rebate on purchases at U.S. supermarkets, petrol stations, and select department shops. Any benefits you accrue are free because there is no yearly charge.
Blue Cash Preferred® Card from American Express
With a $95 annual fee, the Blue Cash Preferred is a great credit card for grocery shopping and collecting points on some US streaming subscriptions. Equinox members can additionally earn up to $120 in credits (select benefits require enrollment).
American Express® Gold Card
This card is ideal for foodies and tourists alike. In addition to Uber Cash (which can be used for Uber trips or UberEats orders) and dining credits, it provides a total of up to $120 in yearly Uber credits. There is no need to worry about the $250 yearly charge because of these credits. Enrollment in some benefits is required.
The Platinum Card® from American Express
The American Express Platinum is a high-end credit card for frequent travelers. The $695 yearly cost is mitigated by more than $1,400 in annual credits. Aside from these perks, you’ll get free use of Priority Pass and The Centurion Lounge, as well as Gold Elite Marriott Bonvoy and Honors status with Marriott and Hilton respectively. Enrollment in some benefits is required.
Venmo’s three greatest debit cards
If you use a connected debit card or bank account to send money via Venmo, you won’t have to pay any fees. If you have a debit card linked to an online bank like Aspiration or Stash, you may transfer money to Venmo and other payment applications like PayPal without having to worry about high fees.
What’s even better is, when you use your Aspiration debit card to make qualifying purchases, you may earn cashback rewards on your Spend & Save account. You may earn Stock-BackR incentives, which are like cashback for your investment account when you use your debit card with a Stash Banking Account.
While transferring money to a buddy through Venmo will not earn you points from either account, you can receive rewards from other qualified businesses.
You can earn cashback on purchases made at retailers like TOMS, Warby Parker, Reformation, and Blue Apron with the Aspiration debit card However, Stash debit cardholders can receive a tiny percentage of their purchases at prominent shops such as Amazon, Apple, and AT&T.
To avoid confusion with the Venmo Credit Card, regular Venmo users may wish to look into the Venmo Card. You may use your Venmo balance to pay for items with this debit card.
Bottom Line
Venmo accepts credit cards, but the 3 percent transaction charge makes this an unwise choice for most people. A Venmo debit card and other credit card reward options may be the ideal option for frequent Venmo users who don’t want to pay high fees for their transactions.
This is especially true if you don’t have a lot of money to spend on Venmo transactions.
