Venmo Credit Card Review - Cash Back on Top-Spend Categories
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If you’re already using Venmo, have a good credit score, and are looking for a credit card outside of your primary bank, this card is for you.
8.5/10
Fees
9/10
Cashback
8/10
Credit building
8/10
Bonuses
6/10
Whether it’s to buy my girlfriend a coffee, call an Uber or collect my roommates’ rent, I rely on Venmo. So, when they announced the Venmo Credit Card in October 2020, I was tempted to apply.
The card offers various perks, like cash back on bonus categories that change automatically depending on where you spend the most. The no-annual-fee card is issued in partnership with Synchrony Bank and runs on the Visa network.
As for interest rates, there is no introductory APR for the first year, and the card charges a regular APR of 18.24%, 24.24%, or 27.24%.
Jump To
What is Venmo?
Venmo is a mobile-only payments app founded in 2009 as a means for bills to be split quickly. Its original target audience was friends and family looking to repay each other for small purchases such as dinners or movie tickets. This money could be instantly transferred to your primary bank account for a 1.5% fee. A lot has changed since 2009. Venmo has been acquired twice, first by Braintree in 2012 and then by PayPal a year later, which considerably expanded its acceptance. It also launched a debit card in 2018 powered by Mastercard.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
How do I sign up for a Venmo credit card?
To apply for the credit card, you need to have a Venmo account that you’ve owned for at least 30 days. If you are eligible to apply, you will see a Venmo credit card section in the settings menu of your Venmo app. After a credit check, you’ll either be approved or rejected within 7 to 10 business days.
Related: Best Credit Cards for Bad Credit
How much does a Venmo credit card cost?
Great news: no annual fees! However, two items to keep in mind if you become a user are cash advance fees and late payment charges.
For cash advances, such as using an ATM, on top of the fee that the ATM charges you, Venmo will also charge an additional $10 or 5%, whichever amount is larger. The company will also charge a late fee for each billing cycle in which it does not receive the minimum payment. For example, if you have paid your minimum payment by the due date in each of the prior six billing cycles, you will be charged a $29 late fee. However, that bumps up to $40 if you failed to make the minimum payment by the due date in any of the prior six billing cycles.
In addition, there’s a $29 fee if any check, other instruments, or electronic payment authorization you provide in payment on your account is not honored, returned unpaid, or cannot be processed. There is no foreign transaction fee, however.
Features
Cash back
One of the most appealing features of this credit card is its rewards program, which offers cash-back rewards personalized to your spending habits. The card offers 3% and 2% cash back in the following categories: dining and nightlife, travel, bills and utilities, health and beauty, grocery, gas, transportation, and entertainment. All other cash-back categories earn a standard 1%.
This means that items you buy most frequently earn you more cash back. Let’s say your top-spend categories are groceries, bills and utilities, and gas. You’ll earn 3%, 2%, and 1% cash back on these items.
There are a few other rewards credit cards that offer higher cashback options.
QR code design
Your Venmo credit card has a unique QR code on the front that allows friends to scan the card with their phone and find your Venmo profile to send or request money in a contactless manner. When you’re first starting, this is also a simple way to activate the credit card if you aren’t in the mood to talk with an agent.
Purchase crypto
When it’s time for Venmo to pay up the cash you earned back, you can receive this amount as one of four cryptocurrencies accepted by Venmo — Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. Once it’s time for your rewards to be transferred into your account, Venmo will automatically use this to buy crypto without any transaction fees.
Related: Credit Cards Offering Crypto Rewards
Instant access
Once approved for the credit card, you can begin using the digital version stored on your Venmo app before the physical ones come in the mail. The card can also be added to some digital wallets.
App-centric
Everything related to your card can be done from within the Venmo app. You can view rewards activity, pay from your Venmo balance or track your spending trends through the Venmo app. If your physical card gets stolen or is lost, you can disable it in the app while continuing to use the virtual card.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
Who is this card best for?
Current Venmo users
The Venmo credit card is best for individuals in the Venmo ecosystem. If you already use Venmo and have difficulty envisioning your weekend without an easy way to pay your friends back, why not make money off those transactions?
Extroverts
Okay, not everyone has to be an extrovert to enjoy the card’s benefits, but it's probably a good fit if you love going out. The more expensive brunches, clubs, or shows you like to go to, the more cash back you’ll get from paying your friends. These more indulgent purchases make money just by spending the weekend doing what you normally do: Partying.
People in a cohabitation situation
It doesn’t matter if you count your mom as a roommate; anyone who shares a living space without a joint bank account needs this credit card. I love Venmo so much in the first place because I never again have to buy the expensive five-layer plush toilet paper every month while my roommates just use it. I send them a Venmo request. And now, when they send me their long list of Venmo requests to pay for our gas bill or some fancy vacuum I will never use, I know I’m earning something. Any cohabitation situation could benefit from this credit card.
Who shouldn't use this card?
Tight budgeteers
If you don’t have space in your budget for more social purchases, you’ll probably want to seek a different credit card. Whether you’re working to pay off debt, saving up for that big vacation, or making a New Year's resolution to eat out less often, social spending might not be on your mind. This credit card is beneficial for individuals who go out more (since that’s typically when friends Venmo each other), but if you prefer watching Netflix at home or reading a bestselling novel, this credit card isn’t your best option.
Other mobile payment app users
While Venmo may be popular, some apps essentially have the same functionality. If you love Cash App or another competitor, you’ll have to make a Venmo account and maintain it for 30 days to get this credit card. If you have already decided that another mobile payment app is better suited for you, then you won’t receive the rewards from paying friends back through the app. While you would still get your 3% and 2% cash back on your top purchase categories, this alone isn’t worth it if you find the app not to your liking.
Related: Best Money Transfer Apps
Spouses who want a joint card
This credit card is created for individual use. There is no way to apply for a card with your spouse or partner. Similar to how the app functions in its single-user profile, so do this credit card. Partners who want to do this spending through a joint account should seek other options.
Pros and cons
Pros
- No annual fee.
- Enticing rewards: 3% cashback on the category you spend the most on and 2% on the runner-up category.
- Avid Venmo users make a 1% profit from paying their friends back.
Cons
- Designed to serve existing Venmo users. If you don’t already have an account, rewards offered by credit cards are worth checking out.
- No sign-up bonus: Many credit cards offer points or cash back upon joining, but unfortunately, Venmo does not.
- No 0% introductory APR.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
Venmo Credit Card vs. the competition
Issuer | Cash back | APR | Annual fee |
Venmo Credit Card | Up to 3% on top-spend categories, 1% on all else | 19.99%, 25.99%, or 28.99% | $0 |
Blue Cash Preferred® Card from American Express | 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). 6% Cash Back on select U.S. streaming subscriptions. 3% Cash Back at U.S. gas stations. 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more). 1% Cash Back on other purchases. | 19.24% - 29.99% | $0 intro annual fee for the first year, then $95. |
Capital One SavorOne Cash Rewards Credit Card | 3 % Cash Back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®). 5 % Cash Back on hotels and rental cars booked through Capital One Travel (terms apply). 8 % Cash Back on Capital One Entertainment purchases. 1 % Cash Back on all other purchases. | 19.99% - 29.99% | $0 |
Discover it Cash Back | 5% cash back rotating, 1% all others | 16.74% to 27.74% | $0 |
Chase Freedom Unlimited® | Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases | 20.49% - 29.24% | $0 |
Bank of America Cash Rewards | 3% your category, 2% grocery, 1% all others | 17.74% to 27.74% | $0 |
FAQs
Didn’t Venmo come out with a credit card four years ago?
Nope! Venmo released their debit card in 2018, which allowed users to shop without transferring money from Venmo into their primary bank account. This is the first credit card.
What credit score do I need to get approved for the card?
Your credit score needs to have a good or excellent rating to be approved which usually means 700 or higher. If your credit score is less than ideal or you haven't started building your credit yet, you’ll want to look into options where a credit check won’t be run on your account. Applying for the Venmo credit card with anything below a good credit score will result in a rejection and have a negative impact on your overall score.
Once I get approved, how do I manage my account?
Everything you’ll need to manage your account can be found in the Venmo app. Just sign in to your account, and Venmo will log every payment for you. The cash you earn back will automatically transfer into your Venmo profile as crypto or cash.
The bottom line
If you’re already using Venmo, have a good credit score, and are looking for a credit card outside your primary bank, this card is for you. The cash rewards (earning the most on what you spend the most on), crypto transfers, no annual fees, and earning cash back from “Venmoing” your friends are some enticing features.
Of course, it’s important to keep in mind that competitor cards may be better suited to you. If Amazon is where you spend most of your money and Venmo is just an app you open once a month, don’t go for it. For the folks who go out every weekend, share their living space, constantly go out for lunch with co-workers, or spend any large chunk of money socially, the rewards are worth it.
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Writer
Taylor Chick has lived in Brooklyn, N.Y. studying Journalism, Culture, and Society at The King’s College. Her work has appeared in Iridescent Women and As If magazine.
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