Venmo Credit Card Review: Cash Back on Your Biggest Spending Categories
Financial apps can make sending and receiving money easier. Venmo is one of the most popular options for person-to-person payments.
The key highlight:
The cash back rewards program is designed to provide the most cash back automatically based on what you spend on most.
This card easily syncs with the Venmo app. If you normally use Venmo to pay, you might find the card a welcome addition to your wallet.
But should you consider the Venmo Credit Card? Here's more on how the card works to help you decide if it's a good fit.
Venmo Credit Card Pros & Cons
Earn Cash Back Rewards Tailored to How You Spend
The Venmo Credit Card is a cash back rewards credit. But the rewards program isn't like other cash back cards.
With other cards, you might earn a flat cash back rewards rate.
Or, you might earn tiered rewards, with some spending categories offering a higher cash back rate than others.
The Venmo Credit Card keeps things simple. With this card, you earn:
- 3% cash back on the category you spend the most
- 2% cash back on the next category you spend the most
- 1% cash back on everything else (including send money to friends and family)
So say, for example, that you charge $2,000 a month to your card. Most of that -- $1,000 -- went to grocery purchases.
You'd earn 3% cash back, or $30 in rewards, for that category.
Now say you spend the second highest amount -- $500 -- on gas. You'd earn 2% cash back, or $10 in rewards, for that category.
The remaining $500 in purchases would earn 1% back or $5 in rewards. And again, that includes sending money to people through the Venmo app.
There are no rotating bonus categories or rewards tiers to keep up with. Venmo reviews your spending and calculates your cash back rewards for you automatically.
You can earn rewards with the Venmo Credit Card in these categories:
- Dining and nightlife
- Bills and utilities
- Health and beauty
- Other (meaning anything that doesn't fit one of the other categories)
The great thing about Venmo cash back rewards is that they fit how you spend at any given time.
So say you're shopping for the holidays, for example. You might earn 3% back on department store purchases in November and December. Then in January, your top spending category might be groceries or gas.
With a card that offers rotating bonus categories, you might get a higher cash back rate. But you only get it on certain purchases each quarter and your rewards are capped.
The Venmo Credit Card doesn't have those restrictions.
Rewards are unlimited and you don't have to opt in to receive bonus rewards. And rewards are added to your Venmo account at the end of each statement cycle.
You can use them to pay your Venmo Credit Card bill or send money to friends and family. Or you can shop or pay other bills with your cash back rewards.
Cash back rewards are worth 1 cent each so you're always getting the same value, regardless of how you redeem them.
Other Card Features and Benefits
The Venmo Credit Card's most impressive feature is its rewards program. But there are some other things worth noting about this card.
Sync card to Venmo app
First, you can sync the card to your Venmo app account.
It's automatically added as a payment option so you can use it to shop and pay anywhere Visa is accepted, either online or in-person.
Sending money and splitting bills
Next, you can use your card to send payments to friends on Venmo quickly and easily. Or, you can pick up the tab when you're out to dinner with a crowd and split the payments just like you would in the app.
Your card has a unique QR code that your friends can scan and use to pay you. You can apply payments to your Venmo account or directly to your credit card bill.
If you're approved for the Visa Signature version of the Venmo Credit Card, you get added benefits like:
- Zero liability fraud protection
- Lost or stolen card replacement
- Emergency cash disbursement
- Roadside dispatch
- Travel and emergency assistance services
- Access to the Visa Luxury Hotel Collection
- Rental car discounts
- Visa Concierge service
These are nice additions to have whether you're using your card to shop or plan a trip. And you can easily manage your Venmo Credit Card through the Venmo app.
The Venmo Credit Card goes pretty easy on fees.
You won't pay an annual fee or foreign transaction fees, which is good if you think you might use the card outside the U.S.
There is a fee for cash advances, which is typical of what you'd find with other cards. There's no balance transfer fee, as this card doesn't allow for balance transfers.
Venmo Credit Card Fees
|Annual Membership Fee||None|
|Balance Transfers||Either 3% of the amount of each transfer or $5 minimum, whichever is greater.|
|Cash Advances||Up to 4% or a $20 minimum, whichever is greater, depending on how the cash advance is completed.|
|Late Payment||Up to $40|
|Returned Payment||Up to $35|
It's also worth noting that this card doesn't offer an introductory APR for purchases.
Compared to Other Rewards Credit Cards
If you use the Venmo app to manage your finances, then getting the Venmo Credit Card might seem like a no-brainer.
But before you apply, here are three other rewards credit cards to consider.
Citi Double Cash
The also has a unique rewards structure.
With this card, you earn:
- Unlimited 1% cash back when you make a purchase
- An additional 1% back as you pay for those purchases
There are no rewards categories or caps on the amount of cash back you can earn. This card also has no annual fee.
You can transfer balances to this card and there's a lengthy introductory APR period. But there is a balance transfer fee of $5 or 3%, whichever is greater.
Capital One Quicksilver Cash Rewards
The is a solid flat-rate rewards option for earning cash back.
With this card, you earn unlimited 1.5% cash back on all purchases. The more you spend, the more cash back you can earn.
Unlike the Venmo Credit Card, this one offers an introductory cash back bonus. You do have to meet the minimum spending requirement to qualify.
The Capital One Quicksilver Cash Rewards Card has no annual fee. There's also no foreign transaction fee.
U.S. Bank Cash+ Visa Signature
You might like the if you want to be able to choose your cash back categories.
This card offers:
- 5% cash back on the first $2,000 in combined purchases from two categories you choose each quarter
- 2% cash back on one everyday spending category you choose
- 1% cash back on all other purchases
This one could work well if you like flexibility.
For example, if you want to earn 5% back at furniture stores or department stores, you can. Or if you want to get 2% back at gas stations, you can choose that option.
Like the other cards included here, this one has no annual fee.
What’s the Verdict?
The Venmo Credit Card is a newer rewards credit card option. But it's worth a look for a few reasons.
First, this card offers flexibility with cash back rewards that you don't always find with other cards. And, since you don't have to remember to opt in to any rotating bonus categories, you don't have to worry about missing out on a higher rewards rate.
The fact that you can link your card to the Venmo app is also a plus. If you're already using the app to send money then having the Venmo Credit Card might make sense.
It's easy to use the card alongside the app to pay. And you can just as easily get paid back if you're using your card to pay for shared purchases.
If you had to look for a downside, there are a couple.
First, this card isn't widely available yet. While it's expected to be available to all U.S. Venmo users soon, right now it's only being offered on a limited basis.
The lack of an introductory cash back bonus takes away from the card's value somewhat. Many of the most popular cash back rewards cards offer a few hundred dollars as an initial sign up bonus.
So if you're hoping to earn some quick cash back, you can't do that with the Venmo Credit Card.
Not being able to transfer a balance to the card or snag a low introductory APR on purchases could also be a drawback. Of course, if you aren't interested in a balance transfer and you pay your bill in full each month anyway that might not matter.
Overall, the Venmo Credit Card is a promising addition to the cash back rewards card options.