Most people rely on Venmo to send and receive money instantly to their friends and family. However, if you take a look at the app’s other features, you’ll find that mobile payment services offer even more features, such as the Venmo credit card.
With the contactless and free Venmo credit card, users can participate in a tailored rewards program to get refunds where they spend the most. Through the Venmo app, cardholders can redeem their rewards to pay credit card bills, complete Venmo requests, pay authorized merchants, fund their bank accounts, and even buy cryptocurrencies.
In addition to automatically adding the card as a payment method in your Venmo app, you can use your Venmo credit card anywhere Visa® credit cards are accepted. Plus, your friends can easily request your “Venmo” or pay locally by simply scanning the QR code on your Venmo credit card.
Benefits and Allowances
Venmo cardholders earn cash back every month based on their personal spending: they automatically get 3% cash back on the highest eligible spend category, 2% on the next, and 1% on the rest.
For example, this looks like earning 3% cash back on groceries, 2% cash back on bills and utilities, and 1 on everything else if those are your highest spending categories % cash back. Eligible expense categories are broad and include bills and utilities, restaurants and nightlife, entertainment, gas, groceries, health and beauty, transportation and travel.
For those who don’t want to wait for a physical Venmo credit card to arrive, Venmo provides instant access once you’ve been approved for a virtual card number. If your card is stolen, you can reset your virtual card number.
As part of the Visa network, the Venmo Credit Card also offers the benefits of the Visa Signature® Card, such as select luxury hotel benefits (such as available room upgrades), discounts on Audi car rentals, and 24-hour Visa Concierge service for your reservations, reservations, or gift purchases. Visit the Venmo website to learn more about Visa Signature benefits.
While Venmo’s credit card doesn’t offer a welcome bonus, you can check to see if you qualify for special offers by checking the credit card section of the Venmo app.
How to Earn and Redeem Cash Back
Earn cash back with your Venmo credit card
Select calculates how much rewards the average American can earn by optimizing how they use their Venmo credit card. We partnered with location intelligence company Esri, which provided us with a sample annual spending budget of $22,126.
There are six main budget categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862), and general purchases ($3,953). Here’s a breakdown of how much cash back you can get with your Venmo credit card.
- Groceries (3%): $155
- Natural gas (1%): $22
- Eating out (1%): $36
- Travel (1%): $22
- Utilities (2%): $97
- General purchase: $39
- Total: $371
If you factor in all the expenses, you can earn about $371 in the first year. Over five years, cardholders may earn $1,855, but the total amount will depend on an individual’s annual spending habits.
Redeem Venmo Credit Cards for Cash Back
Venmo automatically calculates your cash back rewards, making it easy to track your spending. The cash back you earn will also be reflected in your Venmo account at the end of each billing cycle, and your maximum spend categories will reset each month, adjusted for your personal spending.
You can redeem your cash back in a variety of ways, from using it to shop at authorized Venmo retailers, to redeeming it to pay your credit card bill or fill out a Venmo request. You can also withdraw money and deposit it directly into your bank account.
As a bonus, Venmo cardholders interested in digital currencies can redeem their cashback rewards to purchase cryptocurrencies. Simply activate the buy cryptocurrency feature through the app and choose from the four available cryptocurrency tokens. After your cashback is deposited into your Venmo account at the end of each month, Venmo will use it to automatically buy cryptocurrencies with no transaction fees. However, users still have to pay for cryptocurrencies purchased or sold outside of the cashback feature.
Prices and Fees
Venmo credit cards have regular variable annual interest rates ranging from 15.24% to 24.24%.
There are no annual fees and no foreign transaction fees. Late fees can be as high as $40.
Please note that Venmo credit cards are subject to the standard Venmo 3% fee when used for person-to-person payments, similar to using other credit cards.
Map comparison
If you’re considering a Venmo credit card, chances are you’re already an avid user of the Venmo app. But are credit cards the best way to make money? That’s how the Venmo credit card measures up to two other credit cards that fund your expenses.
Venmo Credit Card with PayPal Cash Back Mastercard®
The PayPal Cashback Mastercard® is a convenient cashback card that offers a flat 2% cashback on all purchases. The cash back you earn goes directly to your PayPal account, and the card has no annual fee.
If you use PayPal more often than Venmo or vice versa, it might be worth using their respective credit cards. While Venmo credit card cash back earnings are based on spending category, 3% cash back on the highest eligible spending category and 2% on the next highest category, it’s probably worth it compared to the flat 2% cash back rate. You can analyze your spending habits to see which ones generate more returns.
Venmo Credit Card with Chase Freedom Flex℠
The Chase Freedom Flex℠ is another cash back card that offers up to 5% off select purchases. Cardholders earn cash back on every purchase: 5% cash back on combined purchases in the Rewards category up to $1,500 in each active quarter. Plus, earn 5% cash back on travel purchases from Chase, 3% cash back on dining including takeout and drugstores, and 1% cash back on all other purchases.
There is no annual fee, and new cardholders receive a $200 bonus after spending $500 in the first three months of account opening.
Chase Freedom Flex offers a stronger cash-back program at a higher price, but check out the rotating bonus categories first to see if they make sense for your spending. Check out the Chase Freedom 5% Cash Back Calendar and its past reward categories – past categories include Amazon, Grocery, Walmart, and more. The cash back and welcome bonus you can get might make Chase Freedom Flex a better choice than a Venmo credit card.
Who is the Venmo credit card best for?
If you use Venmo a lot, it might be worth considering a Venmo credit card if you want to focus your financial life on the app. In addition to credit cards, Venmo also allows you to use debit cards and deposit your direct deposit into your Venmo account. You can manage your credit card and Venmo balance in the app while using your cash back rewards to pay your friends, spend at authorized Venmo retailers or settle your credit card bill.
The card may also appeal to those looking to automatically adjust bonus reward tiers based on their monthly spending habits.
bottom line
The Venmo Credit Card is a great choice for personalised cash back rewards and frequent Venmo users.
People who don’t use Venmo can often consider other cashback cards on the market, such as the ones mentioned above.
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