Venmo Credit Card Review

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Venmo Credit Card Review

Pros

  • The card is imprinted with a one-of-a-kind QR code that connects to your Venmo account.

  • Split bill payments may be charged to your credit card or Venmo account.

  • Top spend cash incentive categories are automatically and retrospectively computed.

Cons

  • Low cash rewards rate on all other purchases

  • Only accessible to Venmo clients who have the most recent app version.

Pros Explained

  • The card has a unique QR code that connects to your Venmo account: The front of your credit card will be emblazoned with a unique QR code that connects to your Venmo account. This simplifies bill splitting since your friends and family may pay their share of a split bill using Venmo by scanning the QR code on your card.
  • Split bill payments may be applied to your credit card or Venmo account: Split bill payments may be put to your credit card debt. This is a handy tool for folks who may neglect to utilize their friends’ contributions to pay off their credit cards, preventing them from spending the money elsewhere.
  • Top Spend Cash Rewards Categories Are Automatically and Retroactively Calculated: Other credit cards may ask you to choose a bonus cash back category at the start of a billing cycle. If you estimate incorrectly, you may not get the maximum amount of cash back. The Venmo Credit Card, on the other hand, analyzes your spending and applies your top and second top spend categories retrospectively to help you earn the highest cash rewards.

Cons Explained

  • Low Cash Back Rate on All Other Transactions: Many other credit cards provide at least 1.5% cash back on all purchases. As a result, using this card for transactions that only receive 1% cash back may be counterproductive.
  • Only available to a limited number of Venmo customers: You may now apply for the card if you have the most recent version of the Venmo app.

Who This Card Is For

The Venmo Credit Card is designed for Venmo account holders who desire another option for paying for their transactions. If you typically make the majority of your purchases in one or two of the card’s eight top spend categories, it may be a good fit for you.

It may also be a good match for folks who routinely split purchases with others and wish to utilize the proceeds to pay down their credit card account. Because you can use Venmo to receive reimbursed from friends and family and apply the funds immediately to your credit card debt, this card may help you resist the temptation to spend the money elsewhere.

Rewards Earning Details

It is simple to earn rewards with the Venmo Credit Card. There is nothing you need to do except make purchases using the card. Each statement period, the card will compute your top and second highest expenditure categories and automatically apply the increased reward rates.

You receive 3% cash back on your top spending category and 2% cash back on your second highest spending category. Dining and nightlife, travel, bills and utilities, health and beauty, food (including wholesale clubs), petrol, transportation, and entertainment are the eight acceptable expenditure categories. You receive 1% cash back on all other transactions and when you use your card to transfer money to other Venmo users through your Venmo account.

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Cash incentives do not expire, however they may be stopped or forfeited in the following circumstances:

  • You will not receive cash rewards if your credit card account is suspended.
  • If Synchrony, the issuing bank, closes your credit card account, any incentives you’ve earned but haven’t transferred to your Venmo account would be lost.
  • If you shut your credit card account, you will no longer be able to earn cash rewards, but any past rewards will be transferred to your Venmo account at the end of the statement period.
  • If your Venmo account is stopped, you may not be able to transfer cash rewards until it is restored.
  • If your Venmo Credit Card is not connected to your Venmo account, your credit card will be cancelled, and any cash rewards that have been earned but have not yet been transferred to your Venmo account will be lost.

Rewards Redemption Details

You are not required to redeem your prizes. That is done automatically for you. Venmo calculates your incentives based on your top expenditure categories once your statement closes. The funds are then sent to your Venmo account within three business days.

When the cash rewards are in your Venmo account, you may utilize them just like any other Venmo account balance. For the incentives to transfer automatically, your Venmo Credit Card and Venmo account must be open, in good standing, and connected to each other.

How to Maximize Your Rewards

The amount of money you spend in your top spend categories during the year determines how much you may earn with this card. However, several credit cards provide better cash back rates on other purchases than the 1% cash returns provided by the Venmo Credit Card.

Standard Benefits

The following are some of the perks available to Venmo cards.

  • Roadside assistance (Visa Signature and Visa)
  • Services for travel and emergency aid (Visa Signature only)
  • 24/7 Visa Signature concierge service (Visa Signature only)

Cardholder Experience

The Venmo Credit Card is issued by Synchrony Bank. In J.D. Power’s 2021 U.S. Credit Card Satisfaction Study, it received 788 points out of 1,000, which is lower than the national issuer average of 809.

You may modify your Venmo credit card account using the app or by contacting Venmo credit card assistance at 855-878-6462.

Security Features

If you can’t locate your card or it’s been hijacked, you may deactivate your card account inside the Venmo app. You may unlock your card via the app if you discover it and it is not hacked. If your card is hacked, you may use the Venmo app to request a virtual card to continue buying while your real card is being replaced. You may also utilize this function to begin using your card after being approved but before receiving your actual card.

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Fees to Watch out For

While the Venmo Credit Card does not have an annual cost, keep an eye out for the cash advance fee of $10 or 5% of the amount of each cash advance, whichever is larger.

Our Verdict

The Venmo Credit Card provides competitive cash rewards of 3% and 2% in your top-spend and second-top-spend categories, respectively. Rewards are generated automatically and retrospectively depending on your expenditure, allowing you to earn the maximum money possible.

When you include in the convenience of being repaid for split purchases by friends and family members using the QR code on the front of your card, this card may be quite useful for Venmo users. Unfortunately, the Venmo Credit Card is only available to certain Venmo account users right now.

Investopedia Credit Card Rating Methodology

Investopedia is dedicated to providing the most accurate credit card advice in the business. We’ll tell you when a card is excellent, when it’s awful, and we’ll only declare a card the greatest if we’d suggest it to our friends or family.

Overall Star Rating Explained

To rank credit cards, we objectively examine, score, and weight roughly 100 unique card characteristics, which are then categorized into five key feature sets: fees, interest, rewards, perks, and security/customer service. Here’s how we weighted those feature sets to get a card’s total star rating:

We have applied our patented grading approach to every widely recognized credit card in the domestic market of the United States, allowing users to make fully informed decisions. It’s crucial to understand that we make a lot of assumptions regarding how you’ll use your credit card when calculating our overall score:

  1. While we make no assumptions about whether or not balances are held on a certain card, we do apply differing weights to all credit cards’ promotional APR (if applicable), as well as the normal, long-term purchase and balance transfer interest rates.
  2. We use BLS (U.S. Bureau of Labor Statistics) income and average category spending data to calculate annual earnings rates for rewards cards that offer cash back, points, or miles rewards at a fixed rate on all spending or with bonus rewards for specific spending categories such as gasoline, groceries, restaurants, or travel.
  3. The maximum points value of a rewards card is calculated by dividing the number of points, cash back, or miles required to exchange for the retail price of the most valuable redemption option (for example, in the case of a card that offers a domestic roundtrip airline ticket as a redemption option vs. another redemption option of lesser value that requires the same amount of points or miles to acquire, we would base the rewards value on the airline ticket).
  • Cards that are chosen as the greatest overall in their respective categories often include the majority, if not all, of the following characteristics:
  • Fees that are low or reasonable Credit card fees may take numerous forms, but the most common are those for annual card membership and debt transfers. There are several reward and non-reward card alternatives with no annual fee, but the cost of the ones that do charge an annual fee is generally justified by their attractive recurring benefits and initial signup incentives. Balance transfer costs are often removed during introductory periods with certain cards, which is a feature that is highly and favorably weighted in our scoring model for cards that provide this advantage. Balance transfer costs, if paid, vary between 3% and 5%, and we evaluate them appropriately. Other regular costs, such as those for late payments or cash advances, may often be avoided, but we assess them compared to other cards in the market for reference, but with less weight allocated.
  • Competitive Motivation Many credit cards provide 0% introductory APR on purchases and debt transfers for varied periods of time before reverting to a permanent or normal APR (based on a variable rate related to the prime rate) that applies to any balances that are not paid in full. The introductory APR % and term (in months) are both rated, as is the midpoint of the variable regular APR interest rate range.
  • Excellent Benefits Credit card reward schemes might provide cash back, points, or travel benefits (which can be generic or travel partner-specific, as with airline and hotel co-brand card programs).For cards that give rewards, we calculate the value per dollar spent as well as typical redemption values and award higher ratings to cards that provide greater customer value. We also appreciate sign-up bonuses and their first spending criteria when they are available.
  • Excellent Advantages Concierge service, TSA Pre-check, vehicle rental coverage, travel accident insurance, lost baggage help, and free credit scores are all examples of credit card advantages. We grade cards based on the amount and quality of over a dozen standard and upscale advantages, with additional weighting given to travel-related perks that apply to premium travel cards where they are present.
  • Excellent security/customer service Security and customer service features like as lost or stolen card replacement, the ability to freeze one’s card through an issuer app, and 24 hour customer assistance are becoming increasingly common in the card industry, and we put a high value on them.
  • You can also read our comprehensive methodology for a more in-depth look at how we evaluate cards and reward the best in different categories.
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