Tuesday, March 21, 2023

Can You Use Venmo To Get Credit Card Points

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“To be honest, I haven’t used any of the mountains of points I’ve racked up,” Frank Zhang, a 25-year-old consultant in New York City, said in a Facebook post. “It’s more because not everyone wants to or is allowed to pay with cards, and if someone is Venmo-ing, it’s much easier to have one person keep track of it. Not to mention it takes a load off the waiters.”

“It’s more about getting it done quickly rather than my racking up points, though that helps,” Laura Bedrossian, a 31-year-old senior manager at a strategic communications and public relations agency in New York City, said in an email. “People are definitely grateful about not having to split. I think speed and ease are really important for transactions now, so if an app helps, my friends and I are for it.”

Benefits Of Using A Credit Card On Venmo

  • When the credit card you’re linking to Venmo is a rewards card, it’s possible to rack up a greater number of rewards, particularly if you use Venmo to pay for everyday purchases.
  • Using a credit card means not having to worry about the ebbs and flows of your checking account. So you could use Venmo to pay for things even when your checking account is low.
  • Repaying your credit card each month helps build your credit score.

Paying Your Mortgage With Paypal

PayPal is an online payment platform that allows you to send and request money online with ease. You create a free account linked to either your credit card, debit card, or bank account to use PayPal. You can directly make mortgage payments with PayPal if your lender accepts them.

If they do not accept PayPal, you can use it to get a cash advance on your credit card. You can then use this to pay for your mortgage. To do this, you can transfer money to another user and have them move the money to their bank account and make the payment for you. They could also transfer the money to your bank, and you can make the payment yourself.

Since you are drawing money from your credit card, the high interest that applies to credit card loans applies here. You should think about it very carefully before you do this, to ensure that the benefits outweigh the risk. Usually, lenders give a 15-day grace period to pay your mortgage, after which a heavy late fee is imposed.

If you need more time to make the payment but do not want to pay the late fee and damage your credit score, you can choose to pay this way. As long as you pay back with the acceptable limit, you avoid paying the heavy credit card interest. If you can’t pay back within that time frame, you could end up paying a lot more interest.

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Concerns About Using Venmo

There are two areas of concern when using Venmo for this purpose. First, Venmo is known for freezing accounts if it determines they are being used to support illegal activities or for purposes they dont approve of. To ensure your fund transfers are viewed as legitimate by Venmo, be certain your payment descriptions reflect a valid purpose, such as repaying a debt.

Secondly, Venmo had been in the news for security lapses that resulted in the hacking of its users bank accounts. Venmo has since beefed up its security, and there have been no recently reported cyber breaches. However, it is always something to be mindful of whenever you use any digital payments app.

If you are in a crunch to meet your spending requirement for credit card signup bonus points, Venmo could be a way to go as long as its fee doesnt completely erase your profits. If you use Venmo for any other purpose, youll save money by linking your Venmo account to a free money source, such as your bank checking account or debit card.

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How Do You Add A Credit Card To Venmo

The process of adding a credit card to Venmo is simple and straightforward. You can add a card manually or by taking a photo of it with your phone.

1. Start by logging into the Venmo app and clicking the three horizontal lines on the top left-hand side.2. Click ‘Settings’ and ‘Payment methods’3. Click ‘Add bank or card’, then ‘Card’4. You’ll then have the option to enter your card manually, or you can take a picture of it with your phone and the info will appear automatically.

The Final Word On The Best Credit Cards For Venmo

While it’s possible to use a credit card on Venmo, it’s generally not the best option due to the 3% transaction fee. If you’re a frequent Venmo user and you’re looking for the best payment method, you may even find that you’d be better off opting for a Venmo debit card and looking for other ways to earn credit card rewards so you won’t be stuck paying costly fees for your Venmo transactions.

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Dont Make This Mistake

In many cases, a cards sign-up bonus could be worth hundreds, even thousands of dollars depending on the card. One of the biggest mistakes a consumer can make is failing to meet the minimum spending requirement within the allotted time and missing out on a cards sign-up bonus. I always suggest waiting to apply for a credit card until you have a major expense lined up that will bring you close to, if not meet, the minimum spending requirement of that card.

For example, you could time the opening of a new account with the planning of a lengthy vacation. You can purchase the airfare and lodging on this new card, as longs as the charge processes within your introductory bonus period. Or lets say your house needs a major renovation and you are anticipating a couple thousand dollars of expenses. These purchases are large enough to justify applying for a new credit card. This strategy is doubly beneficial as it also prevents using credit card bonuses as an excuse to justify frivolous spending.

Unfortunately, life happens and the unexpected can get in the way. Perhaps you no longer need a big purchase, or you lose track of time and only have a few days to spend the remaining $1000 to meet your requirement. This can make it difficult or even impossible to earn a cards sign-up bonus. Fortunately, there are ways to ensure you meet the spending requirement without buying the unwanted or unnecessary.

Many Spending Categories Earn Only 1% Back

Can Venmo Be Linked To A Credit Card?

You earn 3% or 2% cash back in only two spending categories per month. Any other spending earns only 1%. If you have a month where you spend a lot at a home improvement store, for example, other cards will reward you more handsomely. However, you could pair the Venmo Credit Card with a flat-rate card like the Citi® Double Cash Card 18 month BT offer, which earns 2% cash back on all purchases: 1% when you buy, 1% when you pay it back.


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Shift Your Bills Around

If you can use your credit card for something you would normally pay for with cash , go ahead and free up that cash. This could be particularly helpful if you get a new credit card with an introductory no-interest offer that buys you time to catch up without accruing interest.

Some billers and landlords charge a convenience fee when you pay a bill with a credit card, so make sure to compare your overall costs before choosing the most affordable way for you to get cash. Ideally, the fee is less than the cash advance fee you would otherwise pay, but even if it isnt, if youre not hit with a higher cash advance APR, it may still be worth it.

Your Card Is Personalized

If youve used the Venmo app before, you know that each account has a dedicated QR code to simplify the process of paying an individual. You can easily open your phones camera and scan the code to directly pay that Venmo user.

The same now goes for the Venmo Credit Card.

The card comes in five designs, with each card printed with a customers unique QR code on the front. The QR code can be scanned via a mobile phone camera to activate the card, or in the Venmo app by friends to send a payment or split purchases.

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Ways To Pay Someone With A Credit Card

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There are varying reasons you might want to pay someone with a . For example, maybe youre sending money domestically or internationally to a friend or family member.

Another reason to explore paying someone with a credit card could be to buy something from an independent seller, or maybe you need to pay someone whos done work for you.

This could include someone who did in-person work, such as a home contractor, or someone whos done online work for you or your business, such as a freelancer.

In the past, the main way to send money quickly to another person was the use of wire transfers, but a wire transfer can be costly.

You also have to provide quite a bit of information about the person youre sending money to, and that might not be realistic for your situation.

When youre looking for ways to pay someone with a credit card, youll need to consider fees and transfer speed, along with other factors such as the maximum transfer amount allowed.

Today Im going over five ways to pay someone with a credit card, but first Im going to talk about the pros and cons of paying someone with a credit card.

How To Get The Most Out Of Using A Credit Card On Venmo

What you need to know about the Venmo debit card

Heres how to optimize your credit card use on Venmo to avoid fees and get the most value:

  • Avoid a fee by using an American Express credit card with the Amex app: American Express has a new feature, called Send and Split, which it developed in partnership with Venmo and PayPal. When you add your credit card to Venmo using the process outlined above, youll have the option to link your American Express app. According to Venmo, we charge no fee for sending money using your Amex credit cards when you select this option.
  • Use your credit card when it doesnt cost you: If you use another credit card besides American Express, only use it when it doesnt cost you a fee. In other words, use the card when purchasing from a Venmo-authorized merchant, as you wont incur a fee. Remember, using a credit card to Venmo money to friends and family triggers a fee equal to 3% of the transaction amount.
  • Pay your credit card balance in full each month: If you dont pay your balance each month, youll accrue interest charges on your purchases, which will likely negate the value of any rewards you earn by using a credit card on Venmo.

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The Platinum Card From American Express

The Amex Platinum is a luxury travel card that could fit the lifestyle of a frequent traveler. It offers over $1,400 in value from annual credits to help offset the annual fee of $695. You also get airport lounge access with Priority Pass and The Centurion Lounge, as well as complimentary Marriott Bonvoy Gold Elite status and Hilton Honors Gold status. Select benefits require enrollment.

For more info, read our American Express Platinum review.

Should You Use A Credit Card On Venmo

There’s no right or wrong answer regarding whether you should use a credit card on Venmo. Your decision depends on several factors, including why you’re choosing to fund Venmo payments through a credit card rather than your bank account. Here are some of the benefits and drawbacks of adding a credit card to Venmo.

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How To Add Money To Venmo

To start using Venmo:

  • for iPhone or Android, or go to Venmo.com.
  • Create a Venmo account.
  • You can also link your account to a bank account, debit card or credit card.

To receive money:

  • Give your Venmo user name or the email or phone number associated with your Venmo account to the sender
  • Or supply them with your Venmo scan code in person or via text, email or AirDrop
  • The money will land in your Venmo balance

To send money:

  • Money you send will be pulled from your Venmo account
  • If the account is empty or doesnt hold enough to cover your purchase, Venmo will draw the total purchase amount from the bank account, debit card or credit card youve linked to your Venmo account

Who Should Avoid Paying Rent With A Credit Card

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As outlined above, this strategy isnt for everybody. Stay away, very far away, if you fall into any of the following categories:

  • You dont have the cash to pay your rent.
  • You have a history of struggling with credit card debt.
  • You are not attempting to earn a signup bonus on a rewards card.
  • You have trouble sticking to a budget.
  • You feel the least bit uncomfortable doing this.

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Is It Safe To Use A Credit Card On Venmo

Venmo uses encryption to protect your private account information, and like banks and other payment services, they monitor your account activity to help identify unauthorized transactions. But, Venmo advises users on its website that their service is meant to facilitate payments between friends and family you trust and to avoid paying for goods and services with businesses other than authorized Venmo merchants.

Your transactions may be more secure on Venmo if you use a credit card as your payment source instead of a debit card. Thats because credit cards typically provide stronger protections for consumers than debit cards. Major credit card issuers offer zero fraud liability, which means you wont be held accountable if someone uses your card to make unauthorized purchases in your name.

No matter how you make payments on Venmo, you should take preventative measures to protect your money and your identity. Set up a PIN or multi-factor authentication to add another layer of protection and safeguard against would-be thieves. Never log into your Venmo account when you are connected to public WiFi, such as at a coffee shop, library or airport. Consider opting into text notifications so that you can stay on top of purchase activity, transfers and log-in attempts.

Are Venmo Payments Protected Against Loss Fraud And Theft

Under new rules, Venmo payments fall under the Electronic Funds Transfer Act, says Saunders.

These are the same regulations that cover debit cards. In cases of unauthorized charges on your Venmo account, if you report the problem to Venmo promptly say, within 60 days you are protected.

However, this most likely wont cover instances of fraud where you sent the money only instances where someone else accessed your account without your knowledge or permission.

If you sent money via Venmo for something that turns out to be a scam , that transaction is not covered under law, says Tetreault. Youre out the money.

Venmo recommends reading its user agreement and cardholder agreement. Also, additional protections can apply if youre buying from a merchant.

Tip: Dont use Venmo to pay anyone you dont personally know or to pay for merchandise you havent received or verified even if you know the seller. And never use it to buy or sell merchandise unless the merchant has been authorized by Venmo.

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Other Yotta Debit Card Perks

  • At least 1 in 500 odds your purchase is immediately reimbursed by Yotta
  • 1 in 100 odds for in-person restaurant purchases
  • 10% tickets back into weekly cash prize drawings for up to $10 million
  • 1,000 bonus tickets after you spend your first $2,000
  • Premium metal card when you refer 10+ friends
  • 55,000+ fee-free ATMs in the US
  • Make cash deposits at 90,000+ locations
  • No foreign transaction fees
  • Lock your card any time from in the app
  • Instant transaction alerts

Purchase A Prepaid Gift Card

You can now use PayPal and Venmo directly within the Amex app

Buy a prepaid gift card with your credit card and then sell it to someone for cash. You may have to accept a little less than the face value of the card to incentivize someone to purchase it from you, but there are several online marketplaces to assist you like Giftcard Granny and Raise, to name a few. Just make sure whatever discount you offer is less than what you would have paid in cash advance fees and interest.

If you have accumulated credit card rewards, you may be able to redeem them for a gift card, sometimes even for more than face value. For example, you may be able to get a $25 gift card for rewards worth $20.

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