Venmo Credit Card Overview
Venmo offers a digital wallet, making transactions between friends and family seamless. Its rise in popularity stems from fee-less transfers and easy splitting of expenses. Beyond its app and debit card, Venmo provides a Visa credit card that offers up to 3% cashback on purchases, and it comes without an annual fee.
In this analysis, we’ll delve into the Venmo Credit Card’s major features, juxtapose it against similar no-fee cashback cards, and assist you in determining if it’s right for you.
Understanding the Venmo Credit Card
Available only to those using the Venmo app, the Venmo Credit Card, a product of Synchrony Bank, comes without an annual fee and isn’t a secured card – no initial deposit needed. A significant draw for users is the 3% cash back on your top spending category, followed by 2% on the second-highest. All other purchases fetch 1%.
The card also allows you to divide expenses among Venmo peers, letting you benefit from both purchase protections and credit card rewards. It also doesn’t charge an annual or overseas transaction fee – advantageous for international trips.
Eligibility for the Venmo Card
A personal Venmo account in good standing for at least a month is a prerequisite. After registering on Venmo via the Android or iOS app and being eligible, you can then apply for the credit card directly within the app. During this process, being pre-approved might be a possibility.
Application requires:
- Name
- Phone number
- Address
- SSN’s last four digits
- Birthdate
- Yearly net income
Notably, joint or authorized users aren’t permitted with the Venmo Credit Card. Each household member must obtain their card. The application process and subsequent hard credit inquiry are standard, determining your eligibility and spending ceiling.
Key Features of the Venmo Credit Card
- Cash Back Tiers: Earn 3% on your most frequent purchase category, 2% on the next, and 1% on all else.
- Cashback Categories: Could be any two from utilities, dining, entertainment, gas, groceries, health and beauty, transportation, and travel.
- Automatic Rewards: Without any opt-in, Venmo automatically assigns the 3% and 2% cashback.
- Rewards Redemption: Rewards get directly deposited into your Venmo account with no minimum limit.
- No Hidden Costs: No annual or foreign transaction fee.
- Spend Tracking: Venmo app provides insights into your spending patterns and allows for balance payments. Cryptocurrency purchases are also visible.
- Unique Card Design: A QR code is present for ease of transactions between Venmo users. Plus, five card designs to pick from, all of which support contactless payments.
- Virtual Card: For online shopping, a different virtual card number is provided for enhanced security.
- P2P Fee Waiver: Sending money via the credit card attracts a 3% fee, but this is waived from 11/1/2022 to 12/31/2023.
- Visa Advantages: Depending on the variant, Visa Traditional or Visa Signature® benefits are applicable.
Comparing Costs
- Annual Fee: None
- Foreign Transaction Fee: None
- Purchase APR: Ranges between 18.24% to 27.24%
- Cash Advance Fee: Greater of $10 or 5%
- Late Payment: Max $41
Weighing the Pros and Cons
Advantages:
- Up to 3% cashback
- Auto-reward redemption
- No extra charges
- Personal QR code on the card
- Simplified reward system
Limitations:
- 3% fee on P2P money transfer can be high
- Rewards can only be redeemed to Venmo account
- Requires a Venmo account
- Absence of a signup bonus
Who’s it for?
The card suits those frequently using credit cards and regularly transferring money to friends or relatives. Its automatic reward system is its standout feature, eliminating the need for manual activation.
Looking at Alternatives
Cards like Chase Freedom Unlimited and Bank of America® Customized Cash Rewards may offer different advantages depending on your needs.
Venmo Credit Card vs. Debit Card
Venmo’s Mastercard Debit Card might be better for those concerned about interest rates and credit checks. For those eyeing cashback, the credit card stands out.
Frequently Asked Questions
- Is there a signup bonus for the Venmo Credit Card? No, but you begin earning up to 3% cashback immediately.
- Is it worth it? If cashback on frequent categories is a priority, it’s an excellent choice.
- How to get the card? Eligible Venmo users can apply through the app.
- Spending limit? Minimum is $250, but it varies based on individual credit profiles.
Conclusion
For those already leveraging Venmo for transactions, the credit card is a valuable addition, offering up to 3% cashback. The absence of transaction fees for overseas purchases is a bonus. If Venmo isn’t a mainstay or the rewards aren’t aligning with your expenses, considering alternatives like the Chase Freedom Unlimited might be better.
Rating
8.7/10
Strengths: High cashback rates, no hidden fees, unique QR code feature.
Weaknesses: High P2P transfer fee, limited reward redemption options, mandate of a Venmo account, no introductory bonus.
