Venmo Credit Card review

Venmo Credit Card review

Updated: April 5, 2021
Updated: April 5, 2021
Ratings Policy
Cash Back Rating:
2.1 rating
2.1 rating
2.1 / 5
Rewards Value0.7
APR3.0
Flexibility3.0
Features2.0
Issuer Customer Experience2.3

In a Nutshell:

The Venmo Credit Card should offer refreshing flexibility thanks to its unique cash back program that lets you earn rewards in your biggest spending categories. However, there’s no guarantee your spending habits will line up with the card’s eligible categories.

Rewards Rate

  • 3% cash back on your top eligible spend category
  • 2% cash back on your next-highest eligible spend category
  • 1% cash back on all other purchases
  • Eligible bonus categories include transportation, travel, grocery, entertainment, dining & nightlife, bills & utilities, health & beauty and gas
Average

Sign-up Bonus

None

Poor

Annual Fee

$0

Excellent

Average Yearly Rewards Value ($1,325 monthly spend)

$254

Poor

APR

15.24%-24.24% (variable)

Very Good

Pros

  • Automatically earn cash back in your two highest eligible spending categories
  • No cash back limits in first year
  • Cash back does not expire
  • Cash back automatically added to Venmo account
  • No foreign transaction fee
  • No annual fee
  • Track spending and split costs in Venmo app
  • Customizable card colors

Cons

  • Only select customers can apply
  • After the first year, you’ll only earn cash back on your first $10,000 in spending per year in combined 2% and 3% categories
  • Your highest area of spending may not qualify for bonus cash back
  • No sign-up bonus
  • Limited cardholder perks
Very Good

Synchrony Bank Customer Service Ratings

  • J. D. Power 2020 customer satisfaction rating: 800 (60% of issuers in this category ranked higher)
  • 24/7 customer service?: Yes
  • Online chat available?: Yes
  • Google Play Store mobile app rating: 3.8/5
  • Apple Store mobile app rating: 4.3/5
Average

Now Venmo can be used for more than just person-to-person payments. The popular mobile app has added a Visa credit card that gives users cash back rewards in the purchase categories where they spend the most money.

The new Venmo Credit Card is also set apart by its personalized QR code, unique to every user. Just as with the app, cardholders can use their QR code to make purchases, split purchases or to send and receive payments. The Venmo Credit Card is available in five different designs, for some flair.

Earning cash back

As soon as you activate your Venmo Credit Card, you can start using it to earn rewards – no minimum purchase required. And you don’t even have to wait for the actual physical card to arrive in the mail. Start using the app’s QR code to shop online wherever Visa is accepted.

The Venmo card’s earning structure really sets it apart. It gives the 3-2-1 earning structure something extra by personalizing your rewards based on your actual spending that month. You’ll earn 3% cash back on your highest spending category, 2% on the next-highest category and 1% for all other purchases.

There are eight potential spending categories that include essentials like groceries, gas, bills and utilities and transportation, as well as some lower-budget areas like health and beauty, entertainment, dining and nightlife and travel.

Another benefit of this card is that the spending categories change from month to month, just as your spending habits are apt to change throughout the year. For example, if bills and utilities are your biggest budget-suck in one month, you’ll get 3% cash back in this category. And if in the next month, you throw down on dance clubs, you’ll get 3% cash back in dining and nightlife. It’s all about balance.

For the first year, you’ll get to enjoy no limits on how much you can spend and earn in any interest rate tier. After the first 12 months, however, you’ll be limited to earning cash back to $10,000 annually in the combined 2% and 3% categories. After that, you’ll only be able to earn 1% on purchases for the rest of the year.

Redeeming cash back

It’s easy to redeem your cash back – simply access it through the Venmo app. With each monthly statement, your cash back rewards will be automatically added to your account and ready to view and redeem.

And remember: There are no limits or restrictions on spending cash rewards. Use them to make more purchases, send money to friends, pay bills, book a getaway and more.

Card rates and fees

Right now, only certain Venmo Credit Card members are targeted to apply, and they must have pretty good credit and spending habits already.

Even when the card launches to the general public, creditworthiness will affect your introductory APR rates, which will then fluctuate with market rates after the first year.

You APR might be 15.24%, 21.24% or 24.24%, depending on credit standing.

The Venmo Credit Card’s fees are comparable to other cash back cards, and it doesn’t charge an annual fee. But there are a few fees to look out for:

  • Minimum interest charge: No less than $2
  • Cash advances: Either $10 or 5% of the amount of each cash advance, whichever is greater
  • No foreign transaction fees
  • Late payment fee: Up to $40
  • Returned payment fee: Up to $29

Card benefits

The Venmo card offers typical benefits for a cash back rewards card, plus an already familiar, easy-to-navigate app that makes using this card simple and intuitive.

  • Personalized cash back rewards – Earn the most cash back for the category you spend the most in.
  • Contactless – The card’s contactless design can be used with touch-free terminals for your safety.
  • Unique QR code – Make purchases or payments, or give your code to friends to make payments to your account or credit card bill.
  • Visa’s Zero Liability – You’re covered by Visa in case of fraud.

Customer experience

Since Venmo is already a popular mobile app, the mobile-first experience of the Venmo Credit Card makes it even more user-friendly, especially for the millennial and Gen Z set, who are already accustomed to doing everything on their smartphones.

How does the Venmo credit card compare to other cash back rewards cards?

Venmo isn’t the only cash back rewards credit card to choose from, and the competition is stiff.

So how does the Venmo Credit Card measure up?

PayPal Cashback Mastercard
PayPal Cash Back Mastercard
Blue Cash Everyday Card from American Express
Blue Cash Everyday® Card from American Express

Citi® Double Cash Card 

Rewards rate

2% cash back on every purchase

Rewards rate

  • 3% cash back at U.S. supermarkets (up to $6,000 per year in purchases, then 1%)
  • 2% cash back at U.S. gas stations and select U.S. department stores
  • 1% cash back general purchases
Rewards rate

  • 1% cash back on general purchases
  • 1% additional cash back as you pay for those purchases
Welcome bonus

None

Welcome bonus

  • $200 when you spend $1,000 in first 3 months
  • Terms apply
Welcome bonus

None

Annual fee

$0

Annual fee

$0

Annual fee

$0

Other things to know

Only PayPal accountholders can apply

Other things to know

  • Long intro APR on new purchases
  • Access to Pay it Plan it flexible payment tools
Other things to know

  • Redeem rewards for check, statement credit, gift card or direct deposit
  • $25 minimum cash back redemption

PayPal Cash Back Mastercard

With no annual fee or purchase restrictions, the PayPal Cash Back Mastercard is a great choice for people who value flexibility above all else. Cardholders will earn 2% cash back on all purchases, without being restricted to certain spending categories. With no points system to calculate or convert, and cash back that is instantly available, managing your rewards is pretty straightforward. This card also offers the same traditional card benefits available to all Mastercard holders, like identity theft protection and special chip technology for added security.

Blue Cash Everyday® Card from American Express

This cash back card benefits bigger spenders. For the first $6,000 you spend, you will earn 3% cash back on U.S. supermarket purchases (1% thereafter), which could especially benefit large families. Blue Cash Everyday cardholders can also earn 2% cash back at U.S. gas stations and department stores and 1% cash back on all other purchases.

Citi® Double Cash Card

Another cash back card with no annual fee or limits on rewards, the Citi Double Cash Reward offers “double” the rewards with up to 2% cash back. What “double” means is that cardholders get 1% cash back upon purchasing and the other 1% when they pay for the purchase. Another big draw is this card’s introductory offer of 0% APR for the first 18 months on balance transfers (13.99% to 23.99% variable APR thereafter), which might be a good way to pay down debt while earning rewards.

Who should get the Venmo credit card?

  • Existing Venmo app users
  • Frequent travelers who will benefit from no foreign transaction fees
  • People who have varying spending habits in different categories
  • People who want to track their spending in real time
  • People who frequently split purchases (with roommates, partners, spouses, friends, etc.)

How to use the Venmo credit card

  • Pay for essentials like utilities, bills, groceries and gas to take advantage of harder to find earning categories
  • Use it when you travel to save on foreign transaction fees
  • Split bills or purchases with friends or family

Is the Venmo credit card worth it?

If you’re an active Venmo app user with spending habits that change from month to month, this could be a great cash back rewards card for you.

With no limits on spending categories, automatic cash back rewards that are easy to redeem and an already familiar platform, the new Venmo credit card is a great contender. And with its personalized QR code for added security – and contactless touch-free features for added safety – this card is clearly designed for the future.

About the author

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