Can You Use Venmo With Credit Card

Advantages Of The Venmo Credit Card

Can You Use a Credit Card on Venmo?

Here are some of the benefits the Venmo credit card has to offer:

Your card information opens directly in the Venmo app. If you are using the app for your other purchases including cryptocurrency you can have a consolidated picture of all of your finances in one place.
Buy cryptocurrency without fees through the monthly cash back rewards when you use the automatic purchase feature.
Youre not liable for purchases made with your card without your consent. If your card is stolen or lost, you can easily disable it within the app.
The Venmo credit card features contactless payment options so you can just tap it at a participating point-of-sale device to check out.

Drawbacks Of Using A Credit Card On Venmo

It’s possible to overspend your credit limit and incur fees from your credit card company.
Tying a credit card to Venmo makes it easier to get into debt.
You will be charged a 3% fee for sending money to friends and family using a credit card as your Venmo funding source.
Your credit card company may view the money you send to friends and family as a cash advance. That typically means a fee of 3% to 5%, and interest begins accruing immediately. It could also mean paying a higher interest rate on the funds sent.

Is Money In A Venmo Account Fdic Insured

That depends on how you use the account. Venmo accounts themselves are not insured by the Federal Deposit Insurance Corp. Theoretically, if you have a few bucks in your Venmo balance from roommates repaying their share of the bills and Venmo goes out of business, you risk losing that money.

If you use direct deposit or check cashing with your Venmo account, it will be eligible to be insured by the FDIC up to the standard maximum deposit insurance amount , according to Venmos site. Venmo explains that this helps protect you against the risk of loss of your funds if the deposit banks it uses to hold those funds would fail.

FDIC insurance would not apply if Venmo itself goes bankrupt, according to its site. In that case, the Venmo site states, We believe that funds that we have on deposit in a custodial account for the benefit of our account holders should be protected from claims by our creditors. But it warns it is possible that you will not have access to those funds while court or other legal proceedings to determine ownership of the funds are ongoing.

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Tips For Using Venmo Safely

Whether you’re paying on Venmo with your bank account, debit card, Venmo balance or credit card, you should follow some basic precautions to help keep your money and identity secure.

Here are six tips for using Venmo safely:

Create a strong password. When it comes to your financial accounts, one of the easiest ways to protect yourself is creating a complex password. Avoid dictionary words, instead selecting a series of lower- and uppercase letters, numbers and symbols.

Add additional security measures. By setting up a PIN, biometrics and multi-factor authentication, you’ll make it much more difficult for fraudsters to gain access to your account.

Only Venmo those you trust. Venmo’s user agreement states you should only transact with “people you know and trust.” If you send a stranger moneyeither due to error or a scamyou’ll have a tough time getting it back.

Stay on top of notifications. Opt into text notifications that immediately alert you to account activity, such as transfers or attempted logins, so you’ll know if something fishy is going on.

Avoid public Wi-Fi. Never sign into your Venmo account while connected to a public Wi-Fi network. Hackers have been known to set up spoof networks or compromise existing ones in order to steal login details and other personal information.

If you ever notice a potentially fraudulent Venmo transaction, contact a customer service representative as quickly as you can. The Venmo app has a built-in chat feature you can use to get help.

Not Sure This Is The Card For You Consider These Alternatives

How Does Venmo Work? Everything You Need to Know About the App

American Express Serve® Cash Back: If youre looking for a prepaid card that could be a viable checking account alternative while also offering cash back, this prepaid card could be exactly what youre looking for. Read our editorial review of all three Serve cards to learn more.
Chase Sapphire Preferred® Card: This card could be a great option if you plan to spend a lot of time overseas. For more info, read our review of the Chase Sapphire Preferred® Card.
Capital One® SavorOne® Cash Rewards Credit Card: This could be the card for you if you want cash back on fun activities with no annual fee. For all the details, read our review of the Capital One® SavorOne® Cash Rewards Credit Card.

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Quick Tips for Your Credit Health

Venmo Credit Card Features

Heres a look at some of the features of the Venmo credit card:

Personal QR code: Your Venmo code is printed on the front of your card, making it easy to have a tangible item for friends and acquaintances to scan and pay you.
Split transactions: Just like in the Venmo app, you can split transactions made on your card. Make a purchase on the card and then accept partial payment through the app. You can put this payment right on your card, reducing your balance.
Choose a card color from five options: Whether its just a personal preference or you want to make it easier to keep track of, you can pick the color for your card.

What Happens If I Send A Venmo Payment To The Wrong Person Or For The Wrong Amount

Once you send money via Venmo, its gone. Venmo payments cannot be canceled.

One exception: If you sent the payment to a new user meaning you paid an email address or phone number that isnt associated with an active Venmo account yet you can go ahead and cancel the payment, says Sinlao.

There are several controls Venmo has in place to help users avoid sending money to the wrong person, one of which is an automatic flag to a sender when we have reason to believe they might be transacting with the wrong user, says Erin Mackey, spokesperson for Venmo.

For instance, indications that the sender and recipient, both of whom must hold Venmo accounts, dont know each other, she adds. We look at information such as whether the sender and recipient have previously transacted on Venmo or share any friends on Venmo. In the event they have not previously transacted or share friends, Venmo will ask the sender to confirm the recipients identity by entering the last four digits of their phone number as an added security measure to avoid paying the wrong user.

If you send the wrong amount or to the wrong person, Venmo recommends you ask the recipient to return it. If you dont hear from the person who received the funds by mistake or need help sending a charge request, Venmo suggests contacting its support team.

Find out if your bank offers recourse, too, says John Breyault, vice president of public policy, telecommunications and fraud for the National Consumers League.

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For Active Venmo Users Only

The Venmo Credit Card is a unique card that has only been available to active users of the popular payment app, Venmo. Its free to sign up and use this credit card as well.

There are also no monthly fees associated with signing up for your account so when you receive rewards on purchases after theyve been processed by the retailer .

Those funds will be directly deposited into your bank account within two business days at most usually sooner than that if it was near one of our supported locations like NYSE trading hours today.

The Venmo Credit Card is not yet available to all users of the app, so its important for you as a customer with access and eligibility that your account stays up to date.

Personalized Rewards Across A Broad Range Of Categories

How To Add Credit Card To Venmo Account

The Venmo Credit Card doesn’t require opting in or activating bonus categories. You don’t really even need to “track” anything. For each monthly billing cycle, you’ll simply earn bonus rewards in the top two categories you spend the most on , and 1% back on other spending. Once the billing cycle ends, your earning opportunities reset.

Heres how this could work: Lets say you booked a trip this month requiring plane tickets and a hotel booking, so you spent the most on travel and would earn 3% cash back on those expenses. Your next highest spending was on bills and utilities, so that earns 2% back. The next month, you go on your trip and dine out often, turning that activity into your 3% cash-back category.

Some business and consumer credit cards also offer this automated personalization. The HMBradley credit card features it, but you must open an HMBradley deposit account first. The Citi Custom Cash Card earns 5% cash back on up to $500 in spending each billing cycle in your highest eligible spending category , and 1% on all other purchases).

Important Information About This Agreement

Assignment We may sell, assign or transfer any or all of our rights or duties under this Agreement or your account, including our rights to payments. We do not have to give you prior notice of such action. Any person, company, or bank to whom we assign this Agreement shall be entitled to all of our rights under this Agreement. None of your rights or obligations shall be affected by such assignment. You may not sell, assign or transfer any of your rights or duties under this Agreement or your account. Enforceability If any part of this Agreement is found to be void or unenforceable, all other parts of this Agreement will still apply. Governing Law Except as provided in the Resolving a Dispute with Arbitration section, this Agreement and your account are governed by federal law and, to the extent state law applies, the laws of Utah without regard to its conflicts of law principles. This Agreement has been accepted by us in Utah. Waiver We may give up some of our rights under this Agreement. If we give up any of our rights in one situation, we do not give up the same right in another situation.

Venmo May Also Charge A Fee If You Use Instant Transfer Or Have A Venmo Card

There will be a fee if you transfer money to your bank account with an Instant Transfer. If you choose an Instant Transfer, Venmo charges one percent .

Standard bank withdrawals, which take 1-3 business days, are always free.

If you get the optional Venmo Card, there are additional fees associated with it, including an ATM cash withdrawal fee and an over-the-counter cash withdrawal fee at the bank .

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Unique Card Design That Makes Splitting Costs Simple

Each physical card features its own QR code on the front, which comes in handy when youre splitting a purchase with another person. They can scan the QR code from the Venmo app and be brought to your Venmo profile. From there, they can send money, or request money from you. Keep in mind that paying a friend over Venmo using the Venmo Credit Card means youll pay a 3% fee, which is the same as using any other credit card for peer-to-peer transactions.

What Happens If I Dont Have Enough Money To Cover A Payment

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If there isnt enough in your Venmo balance, the entire payment would be charged to your linked payment device. If you dont have one or theres not enough money available there, your account will be temporarily frozen until the funds are paid back, according to the site.

If you dont repay the money you could face collection, as well as the reversal of charges, and Venmo can also recover the money through other accounts you have with Venmo or its affiliates, like PayPal, according to the Venmo site.

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What’s The Difference Between Paypal And Venmo

PayPal owns Venmo. PayPal is widely used by businesses and individuals for online transactions. Venmo is used more frequently for peer-to-peer transactions. You can use credit cards on both platforms. PayPal allows significantly higher payments than Venmo and can be used by those living outside the U.S.

Do Everything Through The Venmo App

With the Venmo app, theres functionality to track activity in real-time organized by spending categories, split and share purchases with friends, view cash back status and make payments. These arent unique features but the simplicity and already-familiar platform are strong selling points for Venmo.

The card gives our customers the same unique Venmo experience they already know and love, in an intuitive, easy-to-use card and rewards program, thats all seamlessly managed and controlled from the Venmo app, said Darrell Esch, SVP & GM of Venmo, in a written statement.

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Should You Get The Venmo Credit Card

If you already use Venmo and you want an easy-to-manage card with decent ongoing rewards, the Venmo Credit Card could certainly be a contender. The cards seamless user experience makes it feel like the future of credit cards.

But if youre after a lucrative sign-up bonus, you have less-than-ideal credit or you have no desire to use Venmo as a payment tool, you’ll want to look elsewhere.

Dont Make This Mistake

Can Venmo Be Linked To A Credit Card?

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.

Transfer Money From Venmo To Bank Account

Transferring from your Venmo account to your bank also requires a linked bank account. If you havent, check this section otherwise you can continue.

Go to the Venmo app.

Select the menu icon at the top left corner.

Find and tab Manage Balance that is at the top of the menu.

Select Transfer to Bank.

Put in the amount you want to add to your bank account.

You can select either Instant or 1-3 Biz Days. The instant option will charge you a small fee while the latter option doesnt charge you.

Select your bank account.

Check the transfer details and tap Transfer.

Manage Donations With Venmo

Venmo is the perfect place to raise money for a cause you care about. A few weeks back I decided to raise money for the George Floyd Memorial Fund over Instagram. By using a bingo board and listing my Venmo name, friends and family were able to donate to me on Venmo. I deposited these funds into my checking account and then donated to the GoFundMe. Without Venmo, I wouldnt have been able to raise the additional $218 dollars. And it would have been much more difficult to collect cash and checks from my followers around the country.

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When Is It Worth It

You may be debating whether or not Venmo is a suitable option for you. Ask yourself the following question: are the benefits going to outweigh the 3% fee? Nine times out of ten, Venmo is only beneficial when trying to meet a cards spending requirement for a sign-up bonus. The 3% fee dampens the benefits of earning standard purchase points, since the cashback/rewards earned on non-category spending typically tops out at about 1.5% per dollar spent. However, the 3% fee is justified if it makes the difference between getting a sign-up bonus or not.

Consider the Following Scenario:

You have three months to spend $3,000 in order to earn 50,000 miles, worth about $500 in airfare. You have already spent $2,000 on the card, but only have 6 days left to spend the remaining $1,000. There are no other necessary purchases you need to make, leaving you with very few options. Venmo would be a perfect solution for this particular scenario. You could Venmo a friend the $1,000 using your credit card.