Here’s How to Choose the Best Credit Card for Venmo [2019]

Here’s everything you need to know about using credit cards for Venmo transactions.
11/8/19 | By Christy Rakoczy
Best Credit Card for Venmo

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Sending money to friends and family has never been easier thanks to mobile apps — and Venmo is one of those apps.

Venmo offers a quick and simple way to transfer money directly to others when you don't feel like exchanging cash. It's also a social app — you can keep a record of your transactions and even share them with others on Venmo's social feed.

But while Venmo makes sending money quick and easy, it's generally best to make Venmo transfers from a connected bank account because you have to pay a fee if you transfer cash using a credit card. This doesn't mean it never makes sense to use a card for Venmo transactions, though. In fact, if you research the best credit card for Venmo, you may find that charging your transaction is the right move for you.

Not sure which cards to use when transferring funds via Venmo? This guide will help you decide.

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How does Venmo work?

Venmo allows you to send money to other Venmo users, including friends and family members with a Venmo account. You can also pay partner businesses using your Venmo app. And because Venmo is owned by PayPal, you can typically use it to pay at businesses displaying a PayPal logo.

Funds can be transferred to others via Venmo simply by inputting their Venmo username, phone number, or email address used to register their Venmo account. The money you send comes from a linked bank account, a debit or credit card, or your Venmo balance. And received funds can also be transferred quickly to a linked bank account.

One thing that sets Venmo apart from other services, however, is that your transaction — but not payment amount — displays on Venmo's social feed. Often, people who pay with Venmo leave fun comments on this feed. As an added perk, you can opt to find friends who have Venmo accounts by syncing your Facebook account or phonebook contacts.

Is there a fee to use Venmo?

Venmo charges no fees for many common transactions. There is:

  • No monthly or annual fee
  • No fee for receiving money into your Venmo account from other users
  • No fee for sending money from linked bank accounts
  • No fee for sending money from a debit card
  • No fee if you send money from your Venmo balance
  • No fee for reloading your Venmo balance using your bank account

However, if you send money using your credit card, you'll pay a 3% transaction fee. You'll also owe a 3% fee if you send money using Venmo Purchase Support, regardless of what method you use to provide the funds. When you opt for Purchase Support, Venmo can help you to resolve disputes that might arise involving eligible items you buy.

What’s the best credit card for Venmo?

Paying with credit cards is often more convenient and comes with benefits, including the chance to earn rewards, fraud protection, and the option to pay for your purchases later — although you will owe interest if you don't pay them off when the statement comes.

But when you use Venmo, be careful which card you choose because there’s a 3% fee for sending funds using your card. To offset this fee, opt for a credit card that offers at least 3% back. You may also decide to use a credit card with your Venmo account if you're trying to meet a minimum spending requirement to earn a new cardmember bonus.

If you decide to use a credit card, pay attention to how your card company treats Venmo transactions. Some categorize transfers to your Venmo account as cash advances, which would mean you'd likely be charged an additional cash advance fee of as much as 5%. Cash advances also typically charge a higher interest rate than purchases and interest starts accruing right away instead of when the statement comes.

Because of the added costs you could incur, make sure to do your research to find the best credit card for Venmo. It's especially important to be smart about which card you pick because Venmo only allows you to add four cards to your account over a rolling six-month period. Once you add a card to your account, it counts against your four card limit for a full six months.

To help you make an informed choice, we’ve pulled together some of the best cards below.

Chase Ink Business Preferred

The Chase Ink Business Preferred previously offered triple points on Venmo transactions, but isn't currently doing so. You can still get one point per $1 transferred via Venmo, though. While this isn't enough to offset the 3% fee you'll pay for Venmo credit card transfers, your spending on Venmo will count towards earning the bonus points for new cardmembers.

The bonus is generous for the Chase Ink Business Preferred — new cardmembers can earn 80,000 bonus points after spending $5,000 in the first 3 months of becoming an account holder. That's worth $1,000 — which more than offsets any fees you'll pay for using Venmo to help you hit your spending goal.

The Chase Ink Business preferred also offers other benefits to cardmembers, including 3X points on the first $150,000 spent in combined purchases on travel, shipping purchases, internet, cable, or phone services, and advertising purchases with social media and search engines; and 1X points per $1 on everything else.

Cardmembers also get a 25% bonus if they redeem points to travel through Chase Ultimate Rewards. This means points stretch further. The benefits this card provides can more than offset its $95 annual fee.

Amex EveryDay Credit Card

American Express has partnered with PayPal and Venmo so several different Amex cards could be ideal for use with the Venmo app. Thanks to this partnership, it's now possible to send cash through Venmo directly through the American Express mobile app. You can also pay your Amex bill with your Venmo balance.

Amex also offers an easy way to split the bill with friends using Venmo. Amex will split up the total charges equally, send out Venmo requests, and provide users with in-app tools to track when payments are received. With this new feature, it's easy for cardmembers to earn points for charging restaurant meals and get paid back by their dining companions.

While you could pick from several Amex cards to enjoy these benefits, the Amex EveryDay card is an especially good choice. New cardholders can earn 10,000 points after making $1,000 in purchases in the first 3 months — and using your Amex card with Venmo can help you to accomplish this goal.

In addition to the Venmo-specific benefits, the card provides 2X points per dollar on the first $6,000 spent at U.S. supermarkets each year and 1X points on everything else — including those made with Venmo.

The Amex EveryDay card charges a $0 annual fee, so you won't have to pay for the privilege of becoming a cardmember.

Bank of America Cash Rewards

Bank of America's Cash Rewards card provides 3% cash back on the category of your choice; 2% cash back at grocery stores and wholesale clubs (on to first $2,500 spend each quarter); and 1% cash back on all other purchases. While your chosen 3% category can include online shopping, whether Venmo points will count for bonus cash back is going to depend on how the merchant categorizes the transaction.

Your Venmo transactions can help you get $200 cash rewards bonus after spending $1,000 in the first 90 days of becoming a cardmember. And, even if your Venmo purchases aren't eligible for the bonus category, you could boost the standard 1% back that this card offers if you can become a Preferred Rewards Member.

Preferred Rewards membership is available for those who have at least $20,000 in funds spread across Bank of America accounts and Merrill Lynch accounts. At this membership level, you'll get a 25% bonus on rewards earned. At the Platinum Level, which you hit once you've invested at least $50,000 with BOA or Merrill, you get a 50% rewards bonus. And if you have $100,000 saved and reach the Platinum Honors level, your rewards bonus is 75%. With a bonus at this level, the rewards you earn cover almost the entirety of the Venmo fee.

Why we chose these cards

Most cards that offer cash back or rewards valued at 3% or more restrict the bonus spending to specific rewards categories. So we looked for cards that you could potentially qualify for bonus spending on Venmo transactions in the future.

We also sought out cards that offered benefits specific to Venmo use, such as the Amex cards, as well as cards that offered a generous welcome bonus that you could earn by sending money with Venmo.

The final word on the best credit cards for Venmo

While these credit cards could be good ones for Venmo users, ultimately you should consider your overall financial needs and spending patterns to decide which credit card is best for you.

If you're a frequent Venmo user and you're looking for the best payment method, you may even find that you'd be better off opting for a Venmo debit card and looking for other ways to earn credit card rewards so you won't be stuck paying costly fees for your Venmo transactions.

Hot Sign-up Bonus

Chase Ink Business Preferred Credit Card

Chase Ink Business Preferred Credit Card

Chase Ink Business Preferred Credit Card

Benefits

  • 80,000 point sign-up bonus
  • 3X points on travel and common business spending categories
  • Flexible redemption options
  • Additional employee cards at no extra cost
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