Turn cash back into crypto
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Most people rely on Venmo to instantly send and receive money to friends and family. However, if you have taken a look at the other features of the application, you will notice that there is a lot more that the mobile payment service offers, such as the Venmo credit card.
With the Venmo no-annual-fee, contactless credit card, users can participate in a personalized rewards program to earn money where they spend the most. From the Venmo app, cardholders can then redeem their rewards to pay their credit card bill, fulfill Venmo requests, pay authorized merchants, withdraw money to their bank account, and even to buy crypto.
In addition to automatically adding the card as a payment method in your Venmo app, you can also use your Venmo credit card anywhere Visa® credit cards are accepted. Plus, your friends can easily “Venmo” you or request payment on the spot by simply scanning the QR code on your Venmo credit card.
Below, Select breaks down 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 information was independently collected by Select and was not reviewed or provided by the card issuer prior to posting.
3% cash back on the category you spend the most in, 2% back on the second highest category and 1% back on all other purchases
Balance Transfer Fee
Foreign transaction fees
Venmo cardholders earn cash back each month based on their personal spending: they will automatically earn 3% cash back on the most eligible spend category, 2% on the next and 1% on the rest.
This might look like, say, earning 3% cash back on groceries, 2% on bills and utilities, and 1% on everything else, if those were your top spending categories. Eligible expense categories are broad, including bills and utilities, restaurants and nightlife, entertainment, gas, groceries, health and beauty, transportation, and travel.
For those who don’t want to wait for the physical Venmo credit card to arrive in the mail, Venmo offers instant access once you’re approved with a virtual card number. And if your card is compromised, you can reset your virtual card number.
Part of the Visa network, the Venmo credit card also includes Visa Signature® card benefits, such as zero liability policy, lost or stolen card replacement, emergency cash assistance, Roadside Dispatch® assistance, travel and emergency assistance services, Visa Luxury Hotel Collection Benefits (such as room upgrades when available), Audi rental car discounts and 24-hour Visa Concierge /24/7 to help you with reservations, reservations or gift shopping. You can learn more about the benefits of Visa Signature on the Venmo 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.
Make money with the Venmo credit card
Select calculated how many rewards the average American can earn if they optimize how they use their Venmo credit card. We worked with the firm location intelligence Esriwho provided us with an example of an annual expense budget of $22,126.
The budget includes six main categories: groceries ($5,174), gas ($2,218), restaurants ($3,675), travel ($2,244), utilities ($4,862), and general shopping ($3,953) . Here’s a breakdown of how much cashback you’d earn with the Venmo credit card.
- Grocery (3%): $155
- Gas (1%): $22
- Restaurants (1%): $36
- Travel (1%): $22
- Utilities (2%): $97
- General purchases: $39
- Total: $371
With all expenses taken into account, you could end up earning around $371 in the first year. Over a five-year period, cardholders could potentially earn $1,855, although the total amount depends on an individual’s annual spending habits.
Using Venmo Credit Card Cash Back
Venmo will automatically calculate your cash back rewards, so keeping track of your own spending is pretty handy. Your earned cashback will reflect in your Venmo account at the end of each statement period, and your top spending categories will reset each month, based on your personal spending.
There are several ways to redeem your cash back, use it to make purchases from authorized Venmo merchants, cash out to pay your credit card bill, or fulfill Venmo requests. You can also withdraw the cash back and deposit it directly into your bank account.
As a bonus, Venmo cardholders interested in digital currency can redeem their cash rewards to buy crypto. Simply activate the “buy crypto” function through the app and choose between the four available cryptocurrency tokens. Once your cashback is transferred to your Venmo account at the end of each month, Venmo will then use it to automatically buy crypto without any transaction fees. Users, however, will still have to pay a fee for any crypto bought or sold outside of the cashback feature.
Rates and Fees
The Venmo credit card has a regular variable APR of 15.24% to 24.24%.
Note that, like when using other credit cards, the Venmo Credit Card 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’re probably already an avid user of the Venmo app. But is his credit card the best option to earn money? Here’s how the Venmo credit card measures up to two other credit cards that offer cash back on your spending.
Venmo Credit Card vs. PayPal Cashback Mastercard®
the PayPal Cashback Mastercard® is a simple cash back card that offers flat 2% cash back 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 than Venmo, or vice versa, it’s probably worth using their respective credit cards. While Venmo credit card cash back earnings are based on spend categories, 3% cash back on your eligible top spend category and 2% on the next top spend category, it might be worth it on a flat 2% cash back rate across the board. You can analyze your spending habits to see which ones could earn you the most.
Venmo Credit Card vs. Chase Freedom Flex℠
the Chase Freedom Flex℠ is another cash back card, offering up to 5% back on select purchases. Cardholders earn cash back for every purchase: 5% cash back on up to $1,500 on combined purchases in bonus categories each activated quarter. Plus, earn 5% cash back on travel purchased through Chase, 3% on meals including takeout and drugstores, and 1% on all other purchases.
There is no annual fee and new cardholders can earn a $200 bonus after spending $500 on purchases within the first three months of account opening.
The Chase Freedom Flex offers a more robust cash back program at a higher rate, but pay attention to the rotating bonus categories to see first if they make sense for your spending. Take a look at the Chase Freedom 5% cash back schedule and its past bonus categories – previous categories include Amazon, grocery stores, Walmart and more. The cash back you can earn, along with the welcome bonus, can make the Chase Freedom Flex a better choice than the Venmo credit card.
5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%), 5% cash back on travel booked through Chase Ultimate Rewards®, 3% on pharmacy purchases and meals (including eligible takeout and delivery services), 1% cash back on all other purchases
$200 cash back after spending $500 on purchases within the first three months of account opening
0% for the first 15 months from account opening on purchases and balance transfers
15.24% to 23.99% variable
Balance Transfer Fee
Introductory fee of $5 or 3% of each transfer amount, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of each transfer amount, whichever is greater.
Foreign transaction fees
If you are a frequent Venmo user, the Venmo credit card might be worth considering if you want to centralize your financial life in the app. In addition to credit card, Venmo also allows you to have a debit card and receive your direct deposit to your Venmo account. You can manage your Venmo credit card and balance in the app, while using your cash back rewards to pay friends, spend with authorized Venmo merchants, or offset your credit card bill.
The card can also be great for those who want their bonus categories to automatically adjust to their monthly spending habits.
Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.