How does Venmo work with credit cards?

Venmo is one of the most convenient and widely used peer-to-peer (P2P) money transfer services. Owned by Paypal and exclusively available in the US, the platform has reached over 70 million users as of 2022.

While most users add their bank account or debit card as the primary method of sending money to save on transaction fees, users can use a credit card on Venmo.

Let’s take a detailed look at how cards can be used for Venmo.

Users can add a credit account to their Venmo through the Venmo app or log into their Venmo account through the website on a laptop or PC.

Through Venmo Website

To add a card through the Venmo website on a PC or laptop, the instructions are:

• Sign in at Venmo.com
• Click on the “Me” tab
• Go to “Settings” and click on “Payment Methods.”
• Click on “Add Bank or Card.” Here, choose “Card.”
• Add card details

Through Smartphone App

After downloading the app and signing up or signing in, users can follow these instructions:

• Tap on the “Me” tab
• Tap on “Settings” in the top right corner. From here, tap on “Payment Methods.”
• Next, tap on adding a bank or card option and choose “Card.”
• Take a picture of the card or enter card details manually

It’s that simple.

Users must note that Venmo does not charge a fee for adding a card to an account as a mode of payment. However, users may see a $0-1 charge on their card statement after adding it to Venmo. This charge may appear as follows:

CHECKCARD XXXX VENMO 646-863-9557 NY 000000000000 $1.00

This charge is run as authorization from Venmo. Venmo checks that the card details entered are valid and usable. Users are encouraged to tally their card balances when they find this charge.

Venmo quickly cancels the authorization after running it. But if it still shows up on a user’s card balance, they can reach out to their bank account to reverse this authorization and receive money.

The bank usually reverses it in a time of five to seven days. Since Venmo cancels it from its end as soon as it occurs, it cannot be helpful.

Please note that the authorization only occurs once, and the authorization amount never exceeds $1.

Yes, Venmo does charge a standard 3% fee on Venmo transactions made with cards. But this fee only applies when users send money to their friends or family.

Users using their cards through Venmo to transfer to authorized businesses for purchases do not have to pay this fee.

In addition, card issuers may also charge a certain percentage rate to users who send money to their friends and family. In some cases, this amount may not be a percentage of the amount but an additional dollar.

Users can find out if their card issuers charge this fee by contacting the credit card company. Users who receive money are not charged any fee.

Funds can only be extracted from a credit card through Venmo. However, users can credit their debit accounts or debit cards with their Venmo balance. Users can then transfer the funds to their credit bank accounts.

Hence, funds from a user’s Venmo must pass through their debit account to be credited to their credit account.

Crediting your debit card from your Venmo balance utilizes a small fee. However, the process is smooth and quick. It only takes a few minutes for the amount in the debit card account to show up.

While Venmo does not and cannot treat transfers from credit cards as cash advances, a credit card company can. If the credit card company allows this service, it can treat payments made through the credit card on Venmo as a cash advance.

A cash advance is a service that allows credit card holders to borrow cash from their credit limit. It doesn’t come from the account holder’s account balance.

Therefore, it comes with an interest and an upfront fee. The interest on these advances can be comparatively much higher than usual credit card interest.

Venmo’s user agreement states that card companies can treat card transactions to peer accounts as cash advances. However, Venmo does not allow users to use its service to give themselves an advance or help someone to do the same.

Paying off these advances through Venmo is similar to crediting an amount to a credit card account through Venmo; there’s no direct way to carry out this action.

However, users can pay these off through their debit cards. They can also contact their credit card companies to change the transaction status.

One credit card on Venmo cannot be used on more than one Venmo profile. Once a card is added to Venmo as a mode of payment, it will be rejected if users try to add it to another account.

However, if card details are deleted from the first account it was added to, they can be used on another account.

But a card on Venmo cannot be used for more than one account at a time. Moreover, a credit or debit card cannot be updated on Venmo. However, users can delete a card from their payment methods and add a new one.

But users cannot delete old payment methods or new ones to their account frequently. Venmo has a limit of 4 cards per six months. These four cards include both active and deleted cards.

Therefore, users must track the period they use a payment method before replacing it. If they delete all four of their allowed payment methods within six methods, their account will become unusable for a few months.

However, tracking cards as the method to send payments on Venmo can also bring other advantages. For example, rotating cards periodically can allow users to achieve maximum rewards for their credit cards.

But if users are interested in credit card rewards, they can significantly benefit from signing up for Venmo Credit Card.

The Venmo Credit Card is a Visa-branded credit card from Venmo. It personalizes and enhances the Venmo experience for users. Users can easily manage their Venmo Card through the Venmo app installed on their smartphones.

It is printed with a personal QR code of the user’s account, enabling them to make contactless payments worldwide.

Benefits of Getting a Venmo Credit Card

It allows the user’s friends and family to add them to their Venmo account efficiently and quickly by scanning the QR code.

The Venmo card can also send money to or split purchase amounts with friends and family more efficiently and request virtual card numbers for their accounts.

Venmo Credit Card holders can pay bills using their Venmo balance and earn cash-back rewards on their purchases too. The rewards offered by Venmo on Venmo Card include:

• 3% cash back on personalized top spend categories
• 2% cash back on second top spend categories
• 1% cash back reward on sending money to peers and other eligible purchases

Venmo automatically adds cash back rewards to the users’ accounts at the end of each statement period.

Moreover, a Venmo Credit Card can be used worldwide like any other credit card. The app automatically adds its card as a payment method once a user signs up for it.

Like other cards, Venmo charges up to a 3% fee when users transfer money between friends with its card. But users can only send money to friends and family through a Venmo Card only in the US.

Signing up for a Venmo Credit Card can be better than using a regular card on Venmo. Venmo Credit Cards are not available for all users.

Users can find out if they are eligible for it or not by checking out the “Settings” section in their app or on their Venmo account when logged in through a laptop or PC. If a user is eligible, they will see a Credit Card section in their Settings menu.

Venmo requires the same information as any other card issuer requires. The information includes the user’s name, phone number, email address, and residential address.

Moreover, identity details such as a user’s date of birth and the last four digits of their Social Security Number may also be required by Venmo. Finally, Venmo also asks for the user’s annual net income before issuing a Venmo Credit Card.

Venmo users can learn more about the sign-up process for Venmo debit cards or credit cards by contacting Venmo’s customer service.