Seventy years ago, Americans were confused by the newfangled credit cards being introduced to the public. Today, there are all kinds of ways to pay for goods and services, including Venmo. But can you Venmo someone money with a credit card? We'll cover that below.
Can you use a credit card on Venmo?
Absolutely. To use Venmo, download the app on your iPhone or Android device and create an account. During setup, you'll be prompted to link a funding source. You can link a bank account, debit card, gift card, prepaid credit card, or traditional credit card.
What is Venmo?
Venmo is a payments app that lets you send money anywhere you need it to go. Want to pay the person who cuts your lawn but don't have cash on hand? Venmo lets you send money directly to that person's bank account. Venmo is frequently used to pay for goods and services, and you can use it to pay friends and family, no cash or checkbook needed. Splitting the dinner bill or sending your friend a $50 gift has never been easier.
Venmo was created by college roommates who wanted to make their own lives easier by paying each other via smartphones. The startup was acquired by PayPal in 2013 and took off from there. Today, nearly 90 million people across the U.S. use the app to make payments.
As a company, Venmo has expanded. You can pay with it on websites that accept PayPal, and the optional Venmo debit card lets you take cash out at an ATM. There's also a Visa-branded Venmo Credit Card that gets you cash back on things you buy most.
Learn more: Read our Venmo 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. Here are some of the benefits and drawbacks of adding a credit card to Venmo.
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 bunch of rewards, particularly if you use Venmo to pay for everyday purchases. You won't get rewards from sending money to friends and family, though.
- Using a credit card means not having to worry about the ups and downs of your checking account. You could use Venmo to pay for things even when your checking account balance is low.
- Repaying your credit card each month helps you build your credit score. You could use your credit card for small Venmo payments, then repay them on time to build good credit.
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.
- Venmo charges you a 3% fee for sending money to friends and family using a credit card.
- 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.
Requirements to open a Venmo account
You must meet these requirements to open a Venmo account:
- Be physically located in the U.S.
- Have a U.S. cellphone that can send and receive text messages.
- The number you're using can't be on file with another Venmo account.
- You must be at least 18 (or the age of majority in your state).
- Your Venmo app must be up to date.
How to make the most of adding a credit card to Venmo
The best reason to add a credit card as your Venmo funding source is to make the most of rewards points. The following steps can help you do that:
- Only use your credit card to make fee-free purchases. Venmo lets you set up more than one payment method. Buying from an authorized merchant on Etsy? Use your credit card to rack up rewards points. Sending money to a friend? Switch your payment method to your bank or debit card.
- Track credit card spending. You want to avoid two things: running over your credit limit and spending more than you can afford to repay.
- Make sure you're getting more than you're giving. Are you mostly trying to score rewards points? Then be sure to pay your credit card balance off in full each month. That way, you're not hit with interest payments that cancel out your rewards.
Alternatives to Venmo
Venmo is not the only payments game in town. Here are three alternatives.
1. Google Pay
You can use Google Pay in much the same way you use Venmo. Google Pay doesn't charge fees, but merchants may charge fees of their own.
2. Apple Pay
Apple Pay allows you to link your credit or debit card to a digital wallet. It's free to use Apple Pay at the register, at least from Apple's end. If a merchant charges for the use of credit cards, they won't make an exception for Apple Pay.
3. Zelle
Zelle lets users transfer money fast and free. But it only works with bank accounts -- you can't send money with credit cards. Before downloading the app, check if your bank offers Zelle. Most do, but some of the biggest banking apps don't.
No matter where you are, you can make a Venmo payment without breaking a stride, and in today's busy world, that's value-added.
Did You Know? Venmo offers a credit card. Check out The Ascent's Venmo credit card review.
Credit card comparison
We recommend comparing options to ensure the card you're selecting is the best fit for you. To make your search easier, here's a short list of standout credit cards.
| Offer | Our Rating | Welcome Offer | Rewards Program | APR | Learn More |
|---|---|---|---|---|---|
Discover it® Cash Back | Rating image, 5.00 out of 5 stars. 5.00/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Discover will match all the cash back you’ve earned at the end of your first year.N/A | 1% - 5% CashbackEarn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically. | Intro: Purchases: 0%, 15 months Balance Transfers: 0%, 15 months Regular:17.24% - 28.24% Variable APR | |
Chase Freedom Unlimited® Apply Now for Chase Freedom Unlimited® OnChase'sSecure Website. | Rating image, 5.00 out of 5 stars. 5.00/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Up to $300 cash backEarn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Travel, 4.5% on dining and drugstores, and 3% on all other purchases. | 1.5% - 5% cash backEnjoy 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 | Intro:0% Intro APR on Purchases and Balance Transfers for 15 months Purchases: 0% Intro APR on Purchases, 15 months Balance Transfers: 0% Intro APR on Balance Transfers, 15 months Regular:20.49% - 29.24% Variable | Apply Now for Chase Freedom Unlimited® OnChase'sSecure Website. |
Chase Sapphire Preferred® Card Apply Now for Chase Sapphire Preferred® Card OnChase'sSecure Website. | Rating image, 4.50 out of 5 stars. 4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | 60,000 bonus pointsEarn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠. | 5x on travel purchased through Chase Travel℠, 3x on dining and 2x on all other travel purchasesEnjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more. | Intro:N/A Purchases: N/A Balance Transfers: N/A Regular:21.49%-28.49% Variable | Apply Now for Chase Sapphire Preferred® Card OnChase'sSecure Website. |
Still have questions?
Some other questions we've answered:
- Can I buy crypto on Venmo?
- Is the Venmo credit card worth it?
- Is Venmo worth it?
FAQs
While there is no fee for purchases from authorized merchants, there is a fee of 3% for sending money to friends and family.
If you're sending money to friends or family, your credit card company may code the transaction as a cash advance. That typically means a fee of 3% to 5%, and interest begins accruing immediately. If the card issuer codes the transaction as a cash advance, it could also mean paying a higher interest rate on the funds sent.
Venmo will accept a prepaid card or gift card from:
- MasterCard
- Visa
- American Express
- Discover
But a card may be declined by Venmo or the card issuer if funds are unavailable or if there's reason to suspect fraud.
Our Credit Cards Experts
By:Dana George
Writer
Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.
By:Cole Tretheway
Cole Tretheway is a full-time personal finance writer whose articles have been featured on The Ascent and The Motley Fool. He has a degree in English with a Certificate in Professional and Technical Communication from California Polytechnic University, SLO.
