Using a Credit Card on Venmo can be very interesting. Venmo is one of the most popular peer-to-peer (P2P payment platforms. Interestingly, it is more unique since it allows credit card transactions. Venmo demands adding a funding source — a place where the service can pull funds to send to your family, friends or merchants. You are free to directly connect your bank account to Venmo.
Some Features of a Credit Card on Venmo
- Using Venmo for a cash advance is completely prohibited.
- 3% fee is charged when you use your credit card to send money to family and friends.
- No transaction fee when you pay friends and family using your Venmo balance.
- Venmo does not charge a fee, when you’re using a credit card.
- Cardholders can’t transfer funds from their Venmo account to their credit card.
- You can only transfer funds to your bank account or your debit card, however, it charges a fee.
The Credit Card To Use on Venmo
People do not really use a credit card on Venmo to pay family and friends because of the 3% transaction fee. Nobody wants to pay a 3% transaction fee. However, it helps you attain the minimum spending requirement for the signup bonus on a new credit card.
Additionally, if your store accepts this card, you may add your best rewards credit card to your Venmo account. This will help you earn more rewards.
Some cards permit you to choose the category on which you can earn the most rewards — Discover how your card categorizes Venmo and enroll in that category that allows you to earn more rewards. Be sure that you have available credit before making transactions.
Venmo does not allow anyone use more than 4 credit and debits cards in a rolling six month period of time. You can have no more than four active or deleted cards on your account in a six months period. When your cards become more than 4, your account could be closed or you will not be allowed to make transactions.
How To Protect Your Venmo Account From Fraud
Credit Cards have a very strong fraud protection when compared to debit cards and bank accounts. It is better to use your card on Venmo, because it is secure than using a debit card on this platform. Credit cards often have zero fraud liability which prevents you from being accountable for unauthorized purchases made to your card. Adding a PIN to your account can also make your account more secure. Avoid giving anyone your Venmo account details even if they are close to you.