Venmo Credit Card Review: Should You Get One?
Cash Back Flexibility
- Direct connection to your Venmo account
- Ability to split card purchases via Venmo
- Use cash back to purchase cryptocurrency fee-free
- Choose your cash back categories
- Relatively high APR
- Tiered cash back could leave money on the table
About the Venmo Credit Card
The Venmo credit card is a card issued by Synchrony Bank and licensed by Visa USA Inc. to be used in conjunction with an established Venmo app account. The credit card can be used as a payment method with the app and also features some of the options of the Venmo app balance, such as the ability to split purchases.
The Venmo credit card is a modern card meant to work in modern financial situations. For example, it has a personal QR code to accept payments from friends with a simple scan.
It also comes with all the online shopping convenience you could want via your Venmo account. You can use your Venmo card anywhere that takes Visa — which is just about everywhere. And you can get started using it as soon as you are approved with a virtual card.
Customize push notifications about your credit card status in the Venmo app so that you’re never questioning what your balance is or when your payment is due.
Ability To Purchase Crypto
A unique feature of the Venmo credit card is the ability to purchase crypto with your cash back. This is a fee-free way to purchase crypto automatically with each month’s cash back balance. The four regularly available cryptocurrencies that can be purchased on Venmo are Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
Venmo Credit Card Features
Here’s a look at some of the features of the Venmo credit card:
- Personal QR code: Your Venmo code is printed on the front of your card, making it easy to have a tangible item for friends and acquaintances to scan and pay you.
- Split transactions: Just like in the Venmo app, you can split transactions made on your card. Make a purchase on the card and then accept partial payment through the app. You can put this payment right on your card, reducing your balance.
- Choose a card color from five options: Whether it’s just a personal preference or you want to make it easier to keep track of, you can pick the color for your card.
Venmo Card Cash Back Categories
Cash back on the Venmo credit card is customizable. You’ll get 3% cash back on your top spending category, 2% on your next category and 1% on all other eligible purchases.
For example, if you spend the most on groceries, you can get 3% back on all those purchases. If the next thing you spend the most on is gas, you’ll receive 2% back on that. The rest of your purchases will earn 1%. No guesswork is required — Venmo will identify your top spending categories for you.
Advantages of the Venmo Card
Here are some of the benefits the Venmo credit card has to offer:
- Your card information opens directly in the Venmo app. If you are using the app for your other purchases — including cryptocurrency — you can have a consolidated picture of all of your finances in one place.
- Buy cryptocurrency without fees through the monthly cash back rewards when you use the automatic purchase feature.
- You’re not liable for purchases made with your card without your consent. If your card is stolen or lost, you can easily disable it within the app.
- The Venmo credit card features contactless payment options so you can just tap it at a participating point-of-sale device to check out.
Disadvantages of the Venmo Card
Consider these drawbacks when deciding whether to apply for a Venmo credit card:
- The annual percentage rate can be high, up to 24.24%. With a decent credit score, you can find significantly lower rates.
- There are limited perks — users may find better cash back offers out there.
- Cryptocurrency purchases are automatic once you turn them on. If you want to get cash back instead, you’ll need to remember to toggle off the crypto purchase option.
Good To Know
Applying for the Venmo credit card requires you to already have a Venmo account that is at least 30 days old. You must have an established credit history. Your application will result in a hard inquiry against your score, so make sure you’re in good enough shape to handle that.
Should You Get a Credit Card From Venmo?
You should get a credit card from Venmo for two main reasons:
- You utilize Venmo for many purchases and need to increase your budget by using a credit card alongside these purchases.
- You are a hobbyist crypto trader and want to be able to buy a small amount of crypto without fees.
Since you can already use any old credit card with Venmo, there is little benefit in opening a Venmo card just for use with the app. Unfortunately, this Venmo credit card review concludes that it is just not that compelling for those who already have a decent cash-back credit card.