Can I use a credit card on Venmo?

Over 83 million people use Venmo, a peer-to-peer (P2P) payment app that lets you send money to family, friends, and businesses using a debit or credit card. So you can use a credit card on Venmo, but is it worth it?

In this guide, we’ll take a look at that, including the pros and cons of using credit cards with Venmo. We’ll also look at how to set up in-app credit card payment, credit card security, and how to use your card to get the most out of Venmo.

What is Venmo?

Venmo is a P2P payment service and a social app all rolled into one. The PayPal-owned company lets you send or receive money when you don’t want to deal with cash. The app is commonly used to split bills, allowing you to pay your roommate half the rent, pay your share of the dinner bill, and so on.

You can also use Venmo to purchase goods and services from authorized merchants using your bank account or credit card, Venmo Mastercard debit card, or Venmo credit card, or as a payment method on partner apps and websites.

Should I use a credit card on Venmo?

You can use a credit card on Venmo, but that might not be the best idea. As with any financial product or service, it’s always a good idea to weigh the benefits and drawbacks associated with your unique financial situation before making a decision.

Advantages

• Get credit card rewardsA: You can get more perks and rewards such as cash bonuses, cash back, or travel discounts if you use a rewards credit card as your payment source on Venmo.
• Helps build your credit: Since your payment history is 35% of your FICO credit score, using your card regularly and then paying your credit card bills on time can help you build a positive credit history.
• Avoid using your checking accountA: If your checking account is low on funds, you can use your credit card as a payment source on Venmo. While financial flexibility can help you out of a tight spot, it can increase your chances of getting into debt, so be careful not to spend money you don’t have.

disadvantages

• FeesA: Venmo charges a 3% fee when you use your credit card to send money to friends and family. On the contrary, you can send money using your bank account, debit card, or Venmo balance completely free of charge.
• Possible interest rates when issuing cashA: Some credit card companies may treat money you send to friends and family as a cash advance and charge you an additional dollar amount or interest rate, as well as a higher interest rate.
• Can add to debtA: Venmo makes it easy to send money to any person or company. Using a credit card as a payment source for Venmo can make it easier to get into debt.

How to use a credit card on Venmo

You can change your payment method at any time before sending money or making a purchase on Venmo. Here’s how to choose a credit card as your payment method.

1. Click on the “You” tab in the lower right corner of the Venmo app.
2. Navigate to the “Settings” gear in the top right corner.
3. Then click “Payment Methods”.
4. Select an existing card or click “Add bank or card” and enter your card details.
5. Once a credit card has been linked to your Venmo account, you will be able to use the card for future transactions.

Venmo allows you to add most major credit cards as a payment source, including American Express, Discover, Mastercard, and Visa cards registered in your name. Please be aware that Venmo or your card issuer may reject your card due to lack of funds or fraud prevention.

Is it safe to use a credit card on Venmo?

Venmo uses encryption to protect your personal account information and, like banks and other payment services, monitors your account activity to help identify unauthorized transactions. But Venmo tells users on its website that their service is designed to facilitate payments between trusted friends and family and to avoid paying for goods and services with businesses that are not authorized Venmo sellers.

Your transactions on Venmo can be more secure if you use a credit card as a payment source instead of a debit card. This is because credit cards generally provide better consumer protection than debit cards. Major credit card issuers offer zero fraud liability, which means you won’t be held liable if someone uses your card to make unauthorized purchases on your behalf.

Regardless of how you make payments on Venmo, you must take preventive measures to protect your money and your identity. Set up a PIN or multi-factor authentication to add another layer of security and keep you safe from potential thieves. Never sign in to your Venmo account while connected to a public Wi-Fi network, such as at a coffee shop, library, or airport. Consider turning on text notifications to stay up to date on purchases, transfers, and login attempts.

How to get the most out of using a credit card on Venmo

Here’s how to optimize your credit card usage on Venmo to avoid fees and get the most bang for your buck:

• Avoid fees by using your American Express credit card with the Amex app.: American Express has a new feature called “Send and Share” developed in collaboration with Venmo and PayPal. When you add your credit card to Venmo using the process above, you will be able to link your American Express app. According to Venmo, “we don’t charge any fees for sending money with your Amex credit card” when you choose this option.
• Use your credit card when it won’t cost you moneyA: If you are using a credit card other than American Express, use it only if it does not require a fee. In other words, use the card when buying from a Venmo authorized merchant as you won’t be charged any fees. Please be aware that when using a Venmo credit card to send money to friends and family, there is a 3% fee on the transaction amount.
• Pay your credit card balance in full every monthA: If you don’t pay the balance every month, you’ll earn interest on your purchases, which will likely negate the value of any rewards you earn using a credit card on Venmo.

What can be used instead of Venmo?

Not sure if Venmo is right for you? Here are a few other P2P payment services that might suit you better.

PayPal

PayPal is the original P2P payment service that made it easy to send money to people you know. You can still use your PayPal balance or bank transfer as your payment method and it won’t cost you a dime. However, the company charges a 2.9% fee (plus a $0.30 flat fee for USD transactions) when paying with a credit or debit card.

Celle

Although Zelle is an application, many users find out about it through their banks, as Zelle works with most major banking institutions. Because Zelle is compatible with many banks and credit unions, you can easily transfer money directly from your checking account to friends or businesses without the need for a third-party app. Zelle also allows you to send payments using your credit card without incurring any fees from Zelle, but it is recommended that you contact your bank or credit union and ask if they charge you additional fees.

Apple Pay

Apple Pay integrates with iPhone, making it easy to send payments to friends, family, or merchants. For example, if your friend sends you a message that you are asking for $25 for half a meal, you will receive a pop-up notification asking you to send that payment right now. The service accepts multiple payment methods, including most credit and debit cards, PayPal, Apple Card, and more. You won’t pay a fee if you use a credit card to pay for a business, but Apple will charge a 3% fee if you transfer money to an individual using your credit card.

bottom line

Venmo is one of the most widely used P2P payment services and is very easy and convenient to use. The service makes it easy to use a credit card on Venmo, which you might like if you want more perks and benefits from your bonus credit card. Just remember that you will most likely be charged a 3% transaction fee if you use your credit card to send money to friends and family.

If you want to use a credit card on Venmo, please follow the security tips mentioned above, as well as Venmo’s advice to only use this service to make payments to people you trust and vendors authorized by Venmo.