Can You Use A Credit Card on Venmo? — [Explained]
Do you want to use a credit card on your Venmo account? You can Venmo anyone anytime by adding your credit card. This blog will walk you through the entire process and answer all your queries.
Venmo is a peer-to-peer mobile payment application with more than 75 million users that allows you to send and receive money from friends and family and buy cryptocurrencies through your wallet or with your linked bank accounts. You might be wondering whether Venmo takes credit cards. Read the next section for more details about it.
Does Venmo Accept Credit Card?
Can you use a credit card on Venmo? Can you pay Venmo with a credit card? — These questions are frequently asked by Venmo account users. The answer to these queries is yes.
But it can have some restrictions too, like:
You can not link a credit card that is already linked to any other Venmo account Credit card transactions are not free The payment application charges 3% of each payment made with your credit card.
However, you won’t be charged for making transactions to any brand or business accepting Venmo directly, as those payments will be coded as purchases from the partner businesses. You can also spend money from your balance or
add money to your Venmo account to avoid these credit card charges.
In addition to it, the mobile payment application warns users to send money to friends and family through credit cards, as it can be coded as cash advances. These cash advances accrue high-interest rates and many additional fees.
The credit card adding charges is the primary reason why users hesitate to use their credit card on Venmo. However, there are still many ways to get the full benefits of using a credit card on Venmo, which we will discuss in the coming sections. But before moving ahead, let’s learn more about these charges in the next section.
Charges for Using Credit Card on Venmo
As you are now aware that you can use a credit card on Venmo as it accepts all major credit cards, but it is also important to note that transactions made through credit cards on Venmo are not free. It charges a 3% fee for each payment made through a credit card.
However, you may find many shopping sites and businesses having Venmo buttons for direct payments, and Venmo does not charge any fees for transactions on Venmo-connected businesses. Meaning, Credit card transactions do not incur any fees for payments and purchases from business partners.
The payment portal charges the same fees for cash advances and for sending money to friends and family. These cash advances typically have upfront fees that accrue high-interest rates. Therefore, you must contact your card issuer to get a proper understanding of the transactions.
Now that you know the charges for credit card payment on Venmo, let’s look at all the benefits and drawbacks for the same in the coming section.
Venmo Pay with Credit Card: Pros and Cons
You can add your credit card to your account. But the question remains, is it beneficial to use a credit card on Venmo? Before adding your credit card, you must weigh all the pros and cons.
Here is an outline of all the benefits and drawbacks:
Credit card usage or transactions are calculated as a big part of your credit score. Therefore, regular use of credit cards on Venmo and paying bills on time can boost your credit health positively, which can help you obtain loans in the future easily.
Credit Card Rewards and Cashback
If you use Venmo Pay with a credit card, you become eligible for cashback every time you pay with your credit card. Apart from that, credit card holders also get many time-sensitive rewards and discounts.
Keeps Track of Your Expenses
You can easily track credit card payment statements, keep a check on your expenses, and even plan any payment by using Venmo with a credit card without delay.
No Use of a Checking Account
During times when you are low on funds in your checking account, you can easily use your digital account with a credit card if you add it as your payment method.
Drawbacks Cash Advance Interest Rates
Your credit card issuer can count money sent to friends and family as cash advances and can charge you fees for that.
When you have a credit card linked to your digital account, it can get challenging to resist its usage, and you can also end up overusing it, leading to extra expenses and debts.
Venmo charges 3% of the payment made by credit card. The charges remain the same even when you send money to your friends or family. However, it does not charge any fees for transactions made through debit cards or account balances.
Your card issuer can charge extra or hidden charges if you link your credit card to Venmo, as credit cards have several taxes and late fees that can all add up and rack up your expenses.
Now you know all the benefits and drawbacks to deciding whether it is worth using a credit card on Venmo or not. Moving ahead, let’s learn how to add credit cards in the next section.
How do Add a Credit Card to Venmo?
Can you add a credit card to Venmo? — Yes, we have discussed everything about linking credit cards till now. If you have made up your mind to add a credit card to your Venmo account, go ahead and do so by following the steps given below:
From Computer On your computer, launch the official website and log in to your account. Now, go to Payment Methods. Click on the Edit payment method and select Add Bank or card. Add your card details here and set your confirmation PIN for future transactions. From Venmo Mobile App Unlock your device, open the mobile app, and go to your account section. Now, go to the Wallet section. Here, tap on Add bank or card, and choose the card. Enter your card details manually, or you can also upload the image of your credit card by clicking on the camera icon. After doing so, save the details.
Once you are done with all these steps, you can start using your credit card. But sometimes, users also find it difficult to add their credit cards on Venmo. If you are proceeding to add a credit card on Venmo, there’s a possibility that you, too, can face this issue. But do not worry; we have explained how to fix it in the next section.
Venmo Adding Card Error
If this is the first time you are adding a credit card to Venmo, you must know that sometimes, the digital payment application causes trouble while adding a card to it. But you can fix it easily with the points we have jotted down below:
Check if your credit card is blocked. Reach out to your credit card issuer and ask them to issue a new card if it is expired or about to expire. Verify your credit card information on the application. Check if your credit card bank account is working. Turn off VPN while adding a credit card to Venmo. Check on the Venmo application server. Make sure that your payment application is updated. Connect your device to a stable network connection. Logout and log in back again to your account.
You can try all these troubleshooting methods; we hope it will fix your problem in no time. In case if nothing works, you must contact your card issuer first to understand the issue, and if your card is working fine, you must contact Customer support for assistance.
Contact Customer Support in these three ways:
Fill in the contact us form. Chat through the Mobile application (8:00 am–10:00 pm CT, seven days a week) Call at (855) 812-4430 (8:00 am–8:00 pm CT, seven days a week)
Once your issues are sorted, you can start using your credit card with Venmo.
How to Use a Credit Card on Venmo?
After you have added your credit card to Venmo, you can now start using it. To do so, you just need to choose your credit card in the payment options and confirm your identity to complete the transaction. Please remember that every time you purchase something or pay any bill with a credit card through Venmo, you will have to pay a 3% commission for each transaction.
However, there are a few ways by which you can take full advantage of Venmo even after linking your credit card. Let’s discuss more of the same in the coming section.
Optimize Credit Card Use on Venmo
If you have decided to link your credit card to Venmo, then you should know how to get the best out of it so that it can benefit you.
Pay Your Credit Card Balance on Time
It is important to pay your credit card bill on time as it impacts your CIBIL score. You will also get credit card points and bonuses.
Keep Track of Your Credit Card Score
As you know that Venmo accepts all major credit cards; you can improve and build your credit card score by using it frequently through Venmo, which can be helpful in the future.
Venmo brings many offers, discount coupons, and exciting deals for account holders with credit cards. You can access these deals to get the full benefit of using a credit card on Venmo.
Use an American Express Credit Card
You can use American Express Credit cards on Venmo, as it is the business partner of the payment portal and does not charge any fees for credit card payments.
But is Venmo using credit cards in a safe way? — The digital payment application is regulated by the Consumer Financial Protection Bureau. However, many users still have concerns regarding the security of their accounts. We have shed light on it in the next section.
Is It Safe to Use Venmo Pay With a Credit Card?
Venmo started as a peer-to-peer payment application providing free services to its users. It uses data encryption technology to protect account holders against unauthorized transactions. It also has layers of security locks, PINs, and account codes to maintain account safety. Therefore, it is safe to use Venmo with a credit card.
Unfortunately, internet-linked payment applications are more prone to security breaches and scams, as hackers and scammers can trick users. One such incident was reported by WXYZ Detroit on 28 March 2023.
“Melanie Olson from Clarkston was duped out of more than $200 and got her bank accounts and credit card, and debit card hacked by a lady who was selling concert tickets through a local chat site. Olsen used Venmo to pay $220 to the seller and immediately got blocked and found that her Venmo account, debit cards, and credit cards linked to her account got hacked and emptied by the scammer.” “BBC is warning digital wallet users to protect their accounts and to not fall in any kind of trap by the scammers.”
This is what Twitter users have to say:
You can find many such cases, but the point to note here is that the security of our banking account is in our own hands. Here are a few points you must practice:
Do not share your account number or passwords with any unknown people or businesses. Do not share any OTP received on your number. Do not share your account PIN code. Never click on any unknown or unauthorized links to make payments. Do not believe any call unless it’s from the registered company.
In case you suspect anything, immediately contact Venmo and your debit and credit card issuers regarding the matter. You can also explore other Payment applications.
Alternatives of Venmo
Are you still unsure if Venmo is the right payment application for you to add your credit card or not? No problem, go through the list of alternatives given below that have equally compelling features yet lesser credit fees:
The first on our list had to be the “original” payment portal PayPal. You can make payments and purchases online and even
buy bitcoins with PayPal. It does not charge any fees if you make payment through a linked bank account or PayPal balance. However, PayPal charges 2.9% of each transaction made by debit card or credit card.
Another payment portal that you can use if you are an Apple device user is Apple Pay. It is more of a digital wallet and can link any debit card and credit card. In addition to it, you can
send and receive money through Apple Pay easily, even from messages, within a few seconds. But, yes, Apple Pay also charges 3% for payments made through credit cards. Though it has many features, the biggest drawback is that it isn’t available for everyone.
Zelle is the fastest, most secure, and easiest way to send and receive money digitally despite being a payment application; it has partnerships with major banking institutions in the US. It allows you to pay through any major credit card without incurring any charges or credit card fees.
Another great alternative is Cash App. It is not just an ordinary payment application. One can also buy cryptocurrencies, file taxes and even invest in US stocks through their Cash App account. Similar to Venmo, Cash App also charges 3% of every transaction made through a credit card, but it is still worth it considering the features it offers to the users. Along with these features, Cash App also provides premium
Cash App debit cards to all users for free. Frequently Asked Questions
Ans: Yes, Venmo allows paying anyone using various payment methods, including credit cards. Ans: If you are sending money to your friends or family through a credit card linked to your Venmo account, it can be counted as a cash advance. Ans: Yes, you can use any credit card on Venmo. Sources: