If you already use Venmo to make payments or exchange funds with other people, you may now want to know how to apply for venmo credit card, with which you can earn cash rewards through this popular payment application.
In October 2020, Venmo announced that it is offering a new Visa-branded credit card that will seamlessly link to your existing Venmo account. And one of the main benefits is the ability to earn personalized cash back rewards of up to 3% based on your spending habits.
How to apply for Venmo credit card?
The Venmo credit card, called the Venmo Credit Card, has initially been launched for “select customers,” according to the company, but will be available to everyone in the coming months. You can apply through the Venmo app, As long as you’re at least 18 years old, live in the US, and have a Venmo account in good standing that’s been open for at least 30 days.
You should know that if you want this card, you will have to download the Venmo app from the Apple App Store or the Google Play store. You will also need to set up a Venmo digital wallet. You will be prompted to do so when you download the app.
The Visa card can be managed directly in the Venmo app. You’ll be able to view your spending activity, track your rewards, make payments (you can use your Venmo balance to pay for the card), and split purchases. You can also use a virtual card to shop online, even before your physical card arrives.
Just like Venmo accounts, Venmo cards will have a unique QR code on the front that others can scan with their phone’s camera to send or request money. They also carry an RFID chip to enable tap-to-pay transactions. You can choose one of five designs.
You’ll know you’re eligible to apply when you see the Venmo Credit Card section at the top of the main menu of your Venmo app.
Why apply for the Venmo credit card?
Keep in mind that while many programs structure cash back incentives based on categories they’ve selected themselves (the Amazon Credit Card, for example, offers up to 5 percent cash back on Amazon and Whole Foods; 2 percent at gas stations, restaurants, and pharmacies; and 1 percent for everything else), the Venmo card rewards cash back based on your own spending habits.
Venmo will classify your purchases into a number of categories, such as restaurants and nightlife, travel, bills and utilities, health and beauty, food, gas, transportation, and entertainment. You’ll earn 3% cash back on your “biggest spender” category (the one in which you spend the most money during the statement period), 2% in your second highest spending category and 1% in everything else. The card doesn’t charge an annual fee, but there are other fees for things like cash advances and late and returned payments, as well as interest.
At the end of each billing period, your cash rewards are automatically transferred to your Venmo account. You can use this amount in the same way as the rest of your Venmo balance: you can pay friends, make purchases online, or transfer money to the bank or debit card connected to your Venmo account.
Does the Venmo credit card have an annual fee?
If you’re worried that this card will impose a fee for using the Venmo app, you can rest easy, at least initially. There are no annual fees associated with the card.
Here’s a quick breakdown of the fees this card could include:
|rate type||Venmo credit card charge|
|Foreign transaction fee||$0|
|Cash advance fee||$10 or 5%, whichever is greater|
|Late Payment Fee||up to $40|
|Returned Payment Fee||Up to $29|
|Balance Transfer Fee||N/A|
The fact of not having a fee for the collection of transactions abroad makes it the ideal card to be used on trips.
Is the Venmo card secure?
If you are not familiar with a peer-to-peer digital wallet, it is important that you know that Venmo belongs to PayPal. Knowing this will probably make you feel more secure as the service comes from a major and legitimate financial technology company.
Although Venmo is similar in nature to PayPal, the company explains the difference between the two very well here.
The Venmo Credit Card is a Visa card backed by Synchrony Bank.
By the way, keep in mind that PayPal has a brand name cash back credit card that you might want to consider as well. Offer unlimited 2% cash back on all purchases.