Venmo is a digital wallet that allows you to spend and transfer money between friends and family members from one app. It’s become one of the most-used digital wallets because it’s so easy to send money to friends and split purchases without fees.
In addition to using the app and debit card, Venmo has a Visa credit card that earns up to 3% back on purchases without an annual fee.
In this Venmo Credit Card review, I’ll cover the card’s main benefits and compare it to other no-fee cash back cards to help you decide whether it warrants a place in your wallet.
Table of Contents
- How the Venmo Credit Card Works
- How to Qualify for the Venmo Card
- Best Venmo Credit Card Benefits
- Up to 3% Back on Purchases
- Automatic Cash Redemptions
- No Annual Fee or Foreign Transaction Fee
- Track Spending Within the Venmo App
- Personalized Card Design
- Virtual Card Number
- P2P Fee Waiver
- Visa® Perks
- Card Fees
- Venmo Credit Card Pros and Cons
- Who Should Use the Venmo Credit Card?
- Venmo Credit Card Alternatives
- Venmo Credit Card vs. Debit Card
- Venmo Credit Card Review: Summary
How the Venmo Credit Card Works
The Venmo Credit Card is a no-annual-fee cash-back credit card available exclusively to Venmo app users. The Visa product, issued by Synchrony Bank, doesn’t require an initial security deposit as it’s an unsecured credit card.
For many, the best perk is the unlimited 3% cash back on your qualifying top-spend category and 2% cash back on your second-highest top-spend category. The earn rate for all other purchases is 1%.
You can also use the credit card to split purchases between other Venmo users while enjoying the purchase protection benefits and rewards of a credit card.
And you won’t pay an annual or foreign transaction fee, a nice perk when traveling internationally.
How to Qualify for the Venmo Card
To qualify for the card, you must have a Venmo personal account that’s been open for at least 30 days and is in good standing.
You can join Venmo for free by downloading the Android or iOS app. Once you’re eligible to apply for the credit card, you will submit your application through the credit section within the app. At this stage, you may find out that you’re pre-approved.
Here is some information you’ll need to provide Venmo to continue with your application:
- Email address
- Phone number
- Residential address
- Last four digits of your Social Security Number (SSN)
- Date of birth
- Net annual income
Unfortunately, the Venmo Credit Card doesn’t allow joint or authorized users – other household members must apply for their own card.
The Venmo application process is similar to other credit cards as you undergo a hard credit check to determine your eligibility and spending limit.
Best Venmo Credit Card Benefits
Let’s take a closer look at some of the key features of the Venmo Credit Card.
Up to 3% Back on Purchases
One unique reward feature is earning bonus cash back on your two top spend categories each month. Purchases in your most popular category earn 3% back, and the runner-up gets 2% back. 1% cash back is applied to all remaining purchases for the month.
The Top Spend categories can include any two of the following (in alphabetical order):
- Bills and utilities
- Dining and nightlife
- Health and beauty
Venmo automatically awards the 3% and 2% rewards each month. No opt-in is necessary, so you don’t have to worry about not getting the maximum reward if your monthly spending doesn’t match the preselected bonus categories.
Cash-back rewards are perhaps the best reason to consider applying for the Venmo Credit Card.
Automatic Cash Redemptions
As you accumulate rewards, they are automatically deposited into your Venmo account. You can use the balance to cover purchases or send money to friends. There is no minimum redemption amount, so you don’t have to wait to accumulate rewards before cashing out.
While you can’t redeem your rewards as a statement credit, you can apply the balance towards your monthly payment after it arrives in your general Venmo account balance.
No Annual Fee or Foreign Transaction Fee
As mentioned, the Venmo Visa is a no annual fee credit card. In addition, you will not be charged foreign transaction fees when making purchases outside of the US. This is a nice feature, as foreign transaction fees are often as high as 3%.
Track Spending Within the Venmo App
You can receive spending insights and schedule balance payments within the Venmo mobile app. You can also view your Venmo crypto purchases within the app.
Personalized Card Design
Each Venmo Credit Card comes with a personalized QR code that other Venmo users can scan to pay you or to request payment from you.
In addition to your unique QR code, Venmo lets you choose from five different card designs. The card is set up for contactless payments, for added convenience.
Virtual Card Number
You can access a virtual card number from the app for digital purchases. Your virtual number will be different than your physical card number, adding an extra layer of security against unauthorized purchases.
For example, if your virtual number becomes compromised, you can still use your actual card.
In addition, new account holders can use their virtual number for purchases with a reduced spending limit before their physical card arrives by mail. The average delivery time is 7-10 business days.
P2P Fee Waiver
When you use your Venmo credit card to send money to friends, the transaction is subject to a 3% P2P fee, as no goods or services are being purchased. There is no fee for sending the funds from your debit card or Venmo cash balance, so the 3% is steep, and credit card transfers should be avoided.
Note: All Venmo credit card users will be exempt from this fee between 11/1/2022 to 12/31/2023.
Depending on which product you qualify for, you will enjoy Visa Traditional or Visa Signature® credit card benefits, an added value.
Some of the universal benefits include:
- Emergency Cash: Receive emergency cash wire transfers to nearby locations when your card is lost or stolen.
- Roadside Dispatch®: Pay-for-use roadside assistance for fuel delivery, jumpstarting, lockout service, standard towing and winching, and tire change.
- Zero Liability Policy: Cardholders are not responsible for unauthorized transactions.
You’ll need a good credit score to qualify for the following Visa Signature® travel and lifestyle benefits:
- Golf Benefits (Troon): 10% off at over 95 golf courses worldwide
- Rental Car Discounts: Up to 15% off of Silvercar rentals
- Travel and Emergency Assistance Services: Receive emergency help when traveling away from home. Placing the call is free, but third-party fees apply.
- Visa Luxury Hotel Collection: Enjoy discounted rates and complimentary on-property amenities such as continental breakfast and space-available upgrades.
Here is a summary of the Venmo Credit Card fees:
- Annual Fee: $0
- Foreign Transaction Fee: 0%
- Purchase APR: 18.24% to 27.24% variable APR
- Cash Advance Fee: $10 or 5% (whichever is greater)
- Cash Advance APR: 27.24% variable APR
- Late Payment: Up to $41
Like any unsecured credit card, you should only consider this card if you can pay your balance in full each month to avoid sky-high interest rates.
Venmo Credit Card Pros and Cons
There’s a lot to like about the Venmo Credit Card, but it won’t be for everyone. Here is my list of pros and cons:
- Earn up to 3% back on purchases
- Automatic reward redemptions each month
- No annual fee
- No foreign transaction fee
- Personalized QR code on card design
The Venmo Credit Card has an easy-to-understand rewards program. You can effortlessly earn cash back that deposits into your Venmo account after each statement period that you’re able to spend (or save) as you think is best.
- The 3% fee for sending money is steep.
- The only rewards redemption option is Venmo account deposits.
- Must have a Venmo account to apply
- No signup bonus
While you earn a competitive reward rate on purchases, this card lacks flexibility in some areas compared to other cash back credit cards. For example, most cards let you redeem your rewards for gift cards or statement credits and offer a welcome bonus worth $200 or more.
Who Should Use the Venmo Credit Card?
The Venmo Credit Card is ideal for anyone who shops with a credit card and regularly sends money to friends and family.
You should also consider this card if you want to maximize your cash rewards each month. Because Venmo automatically rewards your top spending categories, you don’t have to guess what they will be and then activate your bonus categories manually, a requirement of many cash back cards.
Venmo Credit Card Alternatives
Before signing up with Venmo, you should compare its features with other top cash back credit cards. For example, the following cards may be a better fit depending on your spending habits or redemption preferences.
Chase Freedom Unlimited
The no-annual-fee Chase Freedom Unlimited Card allows you to earn 5% on travel purchases through Chase Ultimate Rewards in addition to the following cash back categories:
3% on dining
3% on drugstore purchases
1.5% back on everything else
Chase Ultimate Rewards can be redeemed for cash back, credit card statement credits, gift cards, or booking award travel.
There is a 3% foreign transaction fee, but new cardholders can earn a $200 signup bonus if they spend $500 in the first three months.
Bank of America®Customized Cash Rewards
The Bank of America®Customized Cash Rewards Card lets you earn 3% cash back on one category of choice that you can reset monthly. The participating categories are dining, drug stores, gas, home improvement/furnishings, online shopping, and travel.
You’ll earn 2% back at grocery stores and wholesale clubs (first $1,500 combined quarterly purchases), and all other purchases earn 1% back.
There is no annual fee, and the foreign transaction fee is 3%.
Venmo Credit Card vs. Debit Card
Venmo also offers a free debit card that makes it easy to make purchases online or in-store. It also earns cash back at participating stores through DOSH. You can apply for either or both products.
The Venmo Mastercard Debit Card may be the better option if you’re worried about carrying a balance on the credit card and potentially paying interest. You also won’t need to undergo a credit check to apply, however, debit cards won’t help you build credit history.
But if cash back rewards are the main attraction, then the Venmo Credit Card is the way to go.
Unfortunately, the Venmo Credit Card doesn’t offer an ongoing signup bonus. While this is a drawback, it’s not uncommon for cash back credit cards. Instead, you can start earning as much as 3% back on purchases immediately.
The Venmo Credit Card is an excellent option if your priority is to earn cash back on every qualifying purchase, especially if most of your monthly spending falls into the top spend categories.
Existing Venmo members can apply for the Venmo Credit Card through the Venmo mobile app.
The minimum credit limit is $250, but the actual limit varies for each approved application based on several credit factors.
Venmo Credit Card Review: Summary
The Venmo Credit Card is an excellent choice, especially if you already use their payment app to split purchases with friends or make purchases. You can earn up to 3% cash back, a generous earn rate for a no-annual-fee credit card. And Venmo makes it easy to redeem your rewards through the app.
I consider the foreign transaction fee waiver a bonus, and while no one will mistake this card for a travel rewards credit card, it’s a feature that will save you money when you are outside the US.
If you’re not a Venmo user, and the cash back categories don’t mesh with your spending patterns, I would consider a different card, like the aforementioned Chase Freedom Unlimited.