Introduction:
Venmo is one of the most famous online transactions platforms in the USA. The platform has many amazing and unique features. Venmo offer some of the most easiest ways to send and receive money in the U.S. It offers you to split your bill a dinner bill and to pay your rent in a single click. Venmo also offers you to buy anything online and to pay for it in a fast and simple manner. But many people want to know if they can use their credit card on Venmo?.
Don’t you know if you can use a credit card on Venmo or not. You need not to worry. In this article, I will be telling you everything about how to use a credit card on Venmo. I will also be telling you about the fees involved in it. Moreover, I will tell you about all the benefits and drawbacks of adding your credit card to Venmo. This will be equally beneficial for you if you are new to Venmo or want to get the most out of your payment options. Then what are waiting for?. Let’s start the discussion.
Can You Use a Credit Card on Venmo?.
The straightforward answer to this question is Yes. You can link your credit card to your Venmo account. And after that, you can use it to make different types of your payments. These payments can includes:
- You can pay to your friends and family.
- You can pay to different businesses that can accept Venmo.
- You can pay for your shopping with online merchants. But these merchants should must support Venmo.
Remember that there is one big thing you should keep in your mind. Venmo charges a 3% of fee when you use your credit card to send money.
How to Add a Credit Card to Venmo:
If you want to add a credit card to Venmo, then remember that this is very easy. To do it, you will have to follow few steps. These steps are:
- First of all, you should open the Venmo app on your phone.
- After that, you should tap on the menu icon (☰). You will find this icon in the top left.
- Next, you should go to Settings. In settings, you should find Payment Methods and click on it.
- Now, you should click on the “Add bank or card” option.
- You should choose “Card” and enter your credit card details manually or scan your card.
Once added, you can choose the credit card as your default payment method. You can also select it manually for each of your transaction.
When You Can Use a Credit Card on Venmo:
You can use a credit card on Venmo to send money to your friends or family. You can use it to pay for your purchases with online merchants. You can also pay for the in-app merchants that accept Venmo. You can use Venmo to split ills with roommates, friends or coworkers.
But remember that there are a few exceptions:
- You can not transfer your money from your Venmo balance to your credit card.
- You can not use your credit card to add money to your Venmo balance.
- You will not be able to use a credit card for certain types of business payments.
How Much Is the Venmo Credit Card Fee?.
When you use a credit card on Venmo, then there is a standard 3% fee for each payment.
Let’s suppose that you send $100 to a friend using your credit card. After that, you will be charged:
$100 (payment amount).
+ $3 (3% fee).
= $103 total.
Important:
This 3% fee only applies when you are sending money using your credit card. If you are paying a merchant or buying something in-app, then the fee is usually waived.
Pros of Using a Credit Card on Venmo:
There are some pros of using your credit card with Venmo. These pros are:
1. Earn Rewards Points or Cash Back:
If your credit card offers rewards, then you can earn points. You can also earn miles and cash back with every Venmo payment.
2. Build Credit History:
If you use your credit card responsibly, then it can help you to build your credit score over time.
3. Emergency Backup:
If your bank account does not have enough funds, then a credit card can help you cover urgent payments.
Cons of Using a Credit Card on Venmo:
There are some downsides of using your credit card on Venmo. These downsides are:
1. 3% Fee Adds Up:
If you do frequent payments, then the 3% fee can quickly become expensive for you.
2. No Money Transfers to Credit Cards:
You can not transfer your money from your Venmo balance back to your credit card.
3. Possible Cash Advance Fees:
There are some credit card issuers that might treat Venmo payments as cash advances. This means that this can come with higher interest rates and extra fees. So you should check with your credit card provider before you use it.
Tips for Using a Credit Card on Venmo:
If you have decided to use a credit card on Venmo, then you should follow some tips. These tips will enable you to avoid all the problems. These tips are:
- You should use it only for occasional payments to avoid high fees.
- You should choose a rewards card to help offset the 3% charge.
- You should check your credit card’s policy on mobile payments to avoid surprise fees.
- You should pay off your balance quickly to avoid interest charges.
- You should use Venmo debit or Venmo balance for frequent payments to save your money.
Conclusion:
Venmo is a famous online money wallet in the United States of America. The platform is very famous among users who like to pay online or wanna split their bills. Venmo has many innovative and unique features. The platform offers you to use a credit card too. But you can do it only if you are okay with the 3% fee. Remember that using a credit card on Venmo can be helpful in emergencies. It can also be helpful for you if you want to earn rewards. But it is not the best option for everyday payments. I will recommend you use a debit card or Venmo balance because this is more cost-effective. And if you do use a credit card, then you should keep an eye on your spending. It is because it is very necessary if you want to avoid debt or interest charges.
FAQS:
Q: Can I use a credit card on Venmo without paying a fee?.
Ans: No. Venmo charges a 3% fee when you send money by using your credit card. But, payments to businesses and merchants often do not include this fee.
Q: Can I send money to someone on Venmo using a credit card?.
Ans: Yes, you can. But remember that there is a 3% fee for sending money to friends. The same is the fee for sending money to your family with a credit card.
Q: Is it safe to use a credit card on Venmo?.
Ans: Yes. Remember that using a credit card on Venmo is very safe. Venmo uses encryption and security features which is trusted. But you should always monitor your credit card for suspicious activity.
Q: Can I transfer money from Venmo to my credit card?.
Ans: No. Venmo only allows transfers to bank accounts or debit cards. But it does not allow you to transfer money to your credit cards.
