Whether you’re splitting a brunch check or splitting your electricity bill with your roommate, peer-to-peer payment apps have made it easy to share purchases between friends and family.
One popular payment app, Venmo, has taken it to the next level with the introduction of a physical card that can be used anywhere Mastercard is accepted in the US. The Venmo Card is linked directly to your Venmo account and can be used to make in-store and online purchases, withdraw money from ATMs, and even get cash back at some stores. Read on to learn more about how the Venmo card works.
How to apply for a Venmo card
You can apply for a Venmo card in the Venmo app. Just go to settings and click “Venmo Card”. On the next screen, you will see a summary of the map’s features. Click “Get a Venmo Card” to continue.
After that, you will choose one of the five available colors for your future card and you will be asked to provide your information, including your legal name, date of birth, and the last four digits of your social security number.
Since the Venmo card is a debit card, it does not require a credit check for approval, and your credit score will not lose points due to a complex application request.
Once your card is approved, you can expect to receive it within 15 business days.
How to use the Venmo card
Venmo’s parent company PayPal launched the Venmo card in 2018, and the card works just like many other debit cards. You can use it in stores or online wherever Mastercard is accepted, as well as at ATMs that display Mastercard, Pulse, or Cirrus acceptance signs. You can use your Venmo balance to pay for purchases or transfer money from your linked bank account. And the best part: you can earn rewards for your purchases.
Replenishment of the Venmo card
The Venmo Debit Card is linked to both your Venmo account and your linked bank account, which acts as a source of funding. Every time you make a purchase, the funds are automatically deducted from your Venmo balance.
To top up your Venmo balance, follow these steps:
- Go to the settings section of your Venmo app.
- Click Manage Balance.
- Click Add Money.
- Enter the transfer amount (note that Venmo has a weekly transfer limit of $1,500).
- Select the bank account you wish to transfer funds from and click Next.
- Review the transfer information and click Add Money to complete the transfer.
You can expect the transfer to reach your Venmo account within one to three business days.
If you ever want to transact more than the funds available in your Venmo account, don’t worry. You can enable automatic “reloads” from a related funding source to cover the total purchase amount. In this case, the funds will be automatically added to your Venmo account in increments of $10.
Just make sure you have enough money in your linked account to cover your purchase to avoid rejected transactions and overdraft fees from your bank.
Earn Rewards with the Venmo Card
In most cases, cash back is a privilege for those with bonus credit cards. However, some banks offer cashback debit cards and others may offer short-term cashback deals at certain merchants.
The latter refers to the Venmo card. While similar cards require users to activate cashback on their debit card, Venmo automatically applies the offers to your account.
Venmo Cardholders receive Venmo Rewards in the form of cash back through a partnership with Dosh, a rewards platform that allows you to earn rewards for activities such as shopping, dining, and hotel bookings.
You can find current deals in the Venmo map section of your app. Currently participating merchants include brands such as Sephora, Wendy’s, Dunkin’ Donuts, Chevron, Sam’s Club and Macy’s.
Split bills with a Venmo debit card
After you make a purchase with a Venmo card, you will receive an invitation with the option to split the transaction or share it with others. You can also access this feature by selecting “Transactions” from your feed in the Venmo app.
Be mindful of fees
The Venmo Card does not charge an application fee or an annual fee to use the card. And since you can only spend what’s available in your Venmo account, you won’t incur any overdraft or late fees.
However, transaction fees may apply to your card. While withdrawing cash from a MoneyPass ATM is free in the United States and some areas of the United States, you may be charged a fee if you use other ATMs or methods to withdraw cash. For example, when withdrawing money through a cash desk at a bank or financial institution, a fee of $3 is charged. A fee is charged when a signature is required.
Other Venmo Debit Card Features
You can personalize your debit card by choosing from five different color options. The Venmo Debit Card also allows you to make contactless purchases without having to swipe or insert your card to make a purchase. And, if your card is lost or stolen, you can simply click “disable” on the Venmo app to immediately prevent anyone from using the card.
Who should get a Venmo card?
If you’re a regular Venmo user and need quick access to your in-app funds, this card might be a good option for you. For example, this can be useful if you’re a student while receiving regular money from your parents, or if you often go out with friends and use Venmo to split a check. Since there is no cost to apply for or maintain a Venmo card, you don’t have to worry about too many fees – just use your card when it’s convenient.
On the other hand, if you are looking for a cash back card, a reward credit card will still be your best bet. The Venmo credit card is one option, but any cash-back credit card will likely provide you with more value than a Venmo debit card, and some, such as the Discover it® Cash Back Card or Citi® Double Cash Card, do not charge an annual fee.
If you’re worried that your credit score might prevent you from qualifying for a rewards credit card, a cashback debit card might be an alternative worth considering. For example, take a look at the Discover Cash Back debit card, which offers 1% cashback up to $30 per month with no fees, or the American Express Serve Cash Back card, a prepaid debit account with unlimited 1% cashback.
Tips for Maximizing Your Venmo Map
If you decide that the Venmo card is the right choice for you, use the following tips to get the most out of it:
Keep an eye out for cashback card offers and use them when shopping at eligible merchants.
Keep an eye on your Venmo balance and make sure your linked bank account has enough funds to cover the transaction so you don’t have to pay overdraft fees.
Avoid withdrawals that may incur fees. If you do not withdraw funds from a MoneyPass ATM, you will be charged a $2.50 withdrawal fee.
Report fraudulent transactions immediately, even if you are likely to be subject to Mastercard’s zero liability policy. If Mastercard does not cover the costs for any reason, you still have Venmo’s liability coverage, which limits your liability to $50 if you notify Venmo within two business days. Otherwise, the limit of liability does not exceed $500.
bottom line
So, should you buy a Venmo debit card? The Venmo Card can be a good addition to your wallet if you use the Venmo app frequently and want instant access to your Venmo funds. Otherwise, it makes little sense to draw up this card. Other prepaid debit or cashback cards can offer more value.
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