Many of the best cashback credit cards provide easy ways to earn cash back on everyday purchases. You typically have cards that earn an unlimited rate on any purchase or cards that earn bonus cash back in certain categories, such as groceries or gas. Show
The Venmo Credit Card was likely designed to compete with these cards by further simplifying the rewards process while still offering high cashback rates. But does it offer enough value to take on more established credit cards? Below, we cover the basics of the Venmo Credit Card and five important things to know about it. This will help you decide whether the Venmo Credit Card’s rewards and benefits are worth it for you. What is Venmo?Venmo is a financial services app that was created in 2009 as a way for friends and family to make fast and safe payments between each other. This could include paying a friend for dinner, sending a roommate rent money, or chipping in on gas on a family road trip. Venmo is owned by PayPal and has more than 60 million users. The Venmo app is available on both iOS and Android devices. To expand its financial services, Venmo has recently started offering branded financial products. This includes the Venmo Debit Card and the Venmo Credit Card. Venmo users can apply for the Venmo Debit Card in the Venmo app, but the Venmo Credit Card is available (as of Jan. 18, 2021) only to select Venmo users with the latest version of the app. However, the Venmo Credit Card is slated for a full release to all U.S. Venmo users in the coming months. To prepare for its release, learn more about how the Venmo Credit Card works. Venmo credit card: The basicsAlthough the Venmo Debit Card is a Mastercard, the Venmo Credit Card is a Visa credit card issued by Synchrony Bank. It earns cashback rewards on any purchase you make, though the process to earn bonus rewards is unique compared to other cashback cards. The Venmo Credit Card links with the Venmo app, so it’s easy to manage all your Venmo services from the same place. 5 things to know about the Venmo credit card1. Cashback rewards program is unique (maximized rewards to what you spend the most on)The biggest draw for cashback credit cards is earning cash back for every purchase you make or for specific types of purchases you frequently make. If you can get a quality cashback rate in categories where you typically make purchases, you’ve likely found an excellent cashback card. The Venmo Credit Card offers three cashback rates for purchases: 3%, 2%, and 1%. However, you don’t have any specific categories attached to each rate. Instead, the Venmo Credit Card will automatically assign 3% cash back to your top spend category during a given statement period. The 2% rate is assigned to your second-highest spending category, and the rest of your purchases get the 1% rate. So if you spend $500 on bills and utilities, $300 on dining, and $200 on gas in a statement period, you’d earn 3% cash back on $500, 2% cash back on $300, and 1% cash back on $200. Your total cash back for the period would be $23. This system of automatically assigning increased cashback rates to your highest spending categories may make the Venmo Credit Card one of the best credit cards for Venmo. Although personalized cash back can be an attractive perk, keep in mind that you can earn cash back only on the first combined $10,000 spent each year in the 3% and 2% categories. After you’ve hit the $10,000 annual spend limit, all your purchases earn 1% cash back. This may turn some people off, but getting at least 2% cash back on the first $10,000 you spend each year is still a decent return. Specific spend categories for the 3% and 2% rates include:
Any cash back you earn with the Venmo Credit Card is applied to your Venmo balance. You can use your Venmo balance to make purchases or payments through Venmo or send money to another Venmo user. You can also transfer your balance to a linked bank account or debit card. Having your cashback rewards applied to your Venmo balance is the only redemption option available on the Venmo Credit Card. This seemingly limits your options, but being able to transfer your balance to a bank account gives you virtually unlimited options for your cash back. 2. Custom, handy features and perksThe Venmo Credit Card’s earning potential is the main benefit, but you also get additional features and perks to increase the card’s value. These perks include:
3. For active Venmo users onlyThe Venmo Credit Card is only available for active Venmo users. This means you need to have a Venmo account to apply for and use the Venmo Credit Card. Fortunately, it’s free to sign up for and use Venmo. In addition, the Venmo app is free to download on both the App Store and Google Play. As mentioned above, the Venmo Credit Card isn’t currently available (as of Jan. 18, 2021) for everyone to apply. Only select customers with the latest version of the Venmo app are able to apply right now. This is likely to change in the coming months with a full release for all U.S. Venmo customers. 4. Two versions of the Venmo Credit CardSynchrony is the card issuer behind the Venmo Credit Card, but the card functions on the Visa payments network. This means cardholders get additional Visa benefits, including global credit card acceptance in more than 200 countries and territories worldwide. Qualified Venmo Credit Card applicants will receive one of the following versions of the card: a Visa Traditional card or a Visa Signature card. Visa Traditional benefits include:
Visa Signature benefits include all Visa Traditional benefits, plus these additional benefits:
5. Manage your account in the Venmo appThe Venmo Credit Card and Venmo app are linked, so it’s easy to manage everything card-related directly in the app. This includes common things like checking your Venmo Credit Card balance and viewing your rewards activity. However, the app also lets you adjust your autopay settings, request a new virtual card number, view your credit card transactions, and disable or enable your physical card. So if you want to analyze your spending trends in your transaction history and view past credit card statements, the app is the place to go. It’s also a convenient way to view and pay your credit card bill each month. FAQs about the Venmo Credit CardThe Venmo Credit Card is well worth it for Venmo users who can take advantage of its earning potential and benefits. With no annual fee and up to 3% automatic cash back on your highest spending category, it competes with other similar cashback credit cards. You likely need a
good or excellent credit score to qualify for the Venmo Credit Card. A good FICO score starts off around 670, and an excellent FICO score is greater than 800. The Venmo Credit Card rewards you for every purchase you make with it. You’ll earn 3% cash back on your highest spending category each statement period and 2% cash back on the next highest spending category. For all other purchases, you’ll get 1% cash back. The 2% and 3% rates are capped at the first $10,000 of combined spend each year. After you hit the $10,000 combined spend, you’ll earn a 1% cashback rate on purchases. Synchrony Bank, the card issuer for the Venmo Credit Card, is included as a participating bank for Apple Pay. However, not all cards from participating banks are supported by Apple Pay. Reports from users and Synchrony customer service state
you can’t add the Venmo Credit Card to Apple Pay. Alternative cards to considerThe Venmo Credit Card provides a unique system for automatically earning bonus cash back on your two highest spending categories, but the annual $10,000 limit on the higher cashback rates decreases the card’s value. If you’re interested in two excellent cashback credit card alternatives, consider the Citi Double Cash Card and Chase Freedom Flex. The Citi Double Cash is an ideal choice if you want to earn unlimited cash back without worrying about different categories. You can earn up to 2% cash back on all purchases: 1% as you buy and 1% as you pay. This is potentially better than what the Venmo Credit Card offers because there’s no limit to how much cash back you can earn each year. The Chase Freedom Flex has set bonus categories and rotating categories, like gas or groceries, which change each quarter. You can earn 5% on rotating quarterly categories (on up to $1,500 spent) and travel purchased through the Chase Ultimate Rewards portal; 3% at restaurants (including takeout and delivery) and drugstores. You earn 1% on all other purchases. Overall, the Freedom Flex has a higher earning potential than the Venmo Credit Card because of its increased earning rates, though the categories would need to align with your typical spending habits. Author Details
Ben Walker, CEPF Ben Walker, CEPF, is a credit cards and travel writer at FinanceBuzz who loves helping others achieve their travel goals through financially sound decisions. For over a decade, he has been using credit card points and miles for the sole purpose of traveling the world. Ben is a Certified Educator of Personal Finance and has been featured in The Washington Post, MSN, Debt.com, and Finder.com. Can I use my virtual Venmo card in stores?Your Venmo Credit Card account is also automatically added to your Venmo payment methods and can be used to pay for things like you already do today, such as person-to-person payments and purchases with authorized merchants.
How do I use my Venmo virtual debit card?How do I use it? at checkout everywhere Mastercard® is accepted. When prompted for payment, simply tap your Venmo Mastercard Debit Card on the payment reader to make your purchase. Make sure you are within an inch or two of the payment reader to ensure it can read your card.
How do you pay with a virtual credit card?How to Use a Virtual Credit Card?. Enter the virtual credit card number.. Input the credit card's validity date.. Submit the OTP sent to your registered mobile number.. Confirm the transaction and your payment will be made.. Is Venmo card a virtual card?When you open a Venmo credit card account, you get a physical card in the mail, but a separate “virtual card” — with a virtual number — to use online. If your virtual card is ever compromised when you're shopping online, you can request a new number directly in the Venmo app.
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