Can Credit Cards Be Used On Venmo?

Venmo is one of the most widely used peer-to-peer (P2P) platforms for payment but has advantages over its main competitors. Zelle: Venmo gives allowance for credit card transactions.

Like other P2P platforms, you need to add a funding source to Venmo – a place where services can take funds to send to family members, friends or retailers. You can link your bank account directly to Venmo or add a debit or credit card. Venmo does not charge any fees when you pay someone with your bank or debit card. However, fees apply to credit card transactions.

Can Credit Cards Be Used On Venmo?

 

How to Use Venmo’s Credit Card | Can Credit Cards Be Used On Venmo?

Venmo charges a 3% fee when you send money to your family and friends with your credit card. Venmo does not pay transaction fees when you pay your friends and family with Venmo balance, Bank Account, or Debit Card.

Even though you can use a credit card to send payments, you cannot transfer funds from your Venmo account to your credit card. Instead, you have to transfer money to your bank account or debit card. Note: There is a fee for fund transfers to your debit card.

Some traders accept Venmo as a payment method. If you buy something from an official company using Venmo, Venmo will not charge you, even if you use a credit card.

Can Credit Cards Be Used On Venmo?

Venmo User Agreement shows that your credit card company can treat transactions as cash advances if you use your credit card to pay someone through Venmo. However, the same user agreement also states that it violates the Terms of Use of Venmo to use a cash advance or help other people. Because such transactions are “limited activity”, it is unlikely that your credit card issuer will treat Venmo transactions as cash advances.

But that’s possible, so there are some important things you need to know:

Cash Advances are usually associated with higher upfront cash advance fees and interest rates. They also start increasing interest immediately. You can check with your credit card company before sending payment to see if the transaction is treated as a cash advance.

Because the use of Venmo for cash advance payments violates the terms of service, you can be suspended or permanently removed from the platform if Venmo believes you are using Venmo for a cash advance.

What Credit Card Do You Need For Venmo? | Can Credit Cards Be Used On Venmo?

Using credit cards on Venmo to pay family members and friends is rarely if ever, a 3% transaction fee. With your credit card on Venmo, you can meet the minimum requirements for a new credit card Signup bonus. A high Signup bonus can exceed the 3% fee you pay for it. However, there may be a cheaper way to reach your minimum costs.

When you shop at a retailer that receives Venmo by adding your best credit card to your Venmo account, you can get the most out of your credit card rewards.

You must Note that tiered rewards that are based on the merchant category. For an instant, your reward program can determine that in order to earn a higher reward for food purchases, transactions must be made with a Merchant Category Code (MCC) related to a restaurant or place to eat.

Can Credit Cards Be Used On Venmo?

The purchasing category for Venmo purchases may not become through with MCC with respect to food, which means you cannot earn the maximum amount of reward. In this case, you might only want to use your physical credit card. However, if you are ready for Venmo, this might help.

There are also several credit cards that allow you to choose a category where you can win the most prizes – more than 3% on several cards – so you can see how your cards categorize Venmo and enter register in that category.

Make sure the card that you add to your account has enough credit for the transaction you made to avoid being denied transactions or penalties because it exceeds your credit limit.

Can Credit Cards Be Used On Venmo?

Venmo limits the number of credit and debit cards that you can have in a six-month period. You can have up to four cards active or delete in your account in the past six months. For example, if you remove the fourth card from your account, you might not be able to replace it with another card for several months.

Protect Your Venmo Account From Fraud | Can Credit Cards Be Used On Venmo?

Because credit cards are better protected from fraud than debit cards and bank accounts, using your credit card can be safer than using a debit card on Venmo. Credit cards are often with zero fraud liability, so you are not responsible for unauthorized purchases on your card. Adding a PIN to your Venmo account can also increase the security of your account.