Venmo Card Review
Why trust us? Investor.com has no financial relationship with any of the credit card providers whose products we analyze and review. Our opinions are based solely on data and our own extensive independent research — that means unbiased guidance for consumers. Rewards cards in our cashback credit card calculator are listed in descending order according to how much money they pay out annually based on the inputs.
This may be the card for you if you just can’t be bothered with things like picking cashback categories … or lifting a finger to redeem your rewards. No judgment! Just facts.
There’s nothing wrong with letting your card do all the rewards busywork. The Venmo Credit Card (issued by Synchrony Bank, by invitation only to Venmo users via the Venmo app) automatically figures out your top two eligible spending categories each month and retroactively credits 3% and 2% cashback to your Venmo account. Too bad about the snoozer 😴 1% cashback default. However, catch Venmo on a good day, and you may be offered a sign-up bonus.
The basics: The Venmo Visa Credit Card automatically pays 3% and 2% cash back on your top two spend categories each statement period and 1% cash back on all other eligible purchases.
Venmo Credit Card
Venmo Credit Card pros and cons
- Automatically pays 2% and 3% cash back on your top monthly spending categories
- No cashback rewards spending caps (translation: unlimited earning potential)
- Rewards automatically credited to your Venmo account each statement period
- No annual fee
- No foreign transaction fee
- Potential rewards-earning hit if spending spans many categories
- Application by in-app invitation only
- 1% default cashback rate is ... what it is
- Only occasionally offers a sign-up bonus
- No joint/authorized users allowed
- 3% fee when used for person-to-person payments after Dec. (srsly?)
- No 0% promotional APR on purchases or balance transfers
Venmo Credit Card cashback rewards spending categories
The Venmo Credit Card is a rotating rewards card. It pays 3% cashback on your biggest spending category each month and 2% cashback on your second biggest spending category. All other purchases earn 1% cashback.
Venmo has nine spending categories: transportation, travel, grocery, entertainment, dining/nightlife, bills/utilities, health/beauty, gas and other.
|Category||Default Rate||Bonus Rate||Bonus Spend Cap||Bonus Spend Period (Months)|
What we like
3% and 2% bonus rewards rates and no annual fee? Not bad, especially when you consider that …
You don’t have to hurt your brain to pick a bonus cashback category ahead of time: Venmo automatically reviews your monthly spending and applies bonus rewards retroactively to your highest spend categories.
Unlimited is awesome when it comes to free tacos and cashback reward spending caps. Venmo previously put a $10,000 annual spending cap on purchases eligible for the highest rewards tiers. That roadblock is now gone.
Redemptions happen automatically and are transferred to your Venmo account — a plus for the less organized among us.
Makes it easy for pals to Venmo you their fair share of the cocktails tab by scanning a unique QR code printed on your card that links to your Venmo account.
Comes with Visa Zero Liability coverage, emergency cash and roadside dispatch. If bad things happen (lost/stolen card, dead battery), Visa swoops in for the save.
No foreign transaction fees makes this a go-to card for exotic travel and purchases from foreign lands.
Travel and emergency services, Visa Concierge and other fancypants perks involving golf and wine are included — but only if you’re approved for Venmo’s Visa Signature card.
Not sure whether this is a 👍 or a 👎 so we’ll just leave it here for now. The card allows you to automatically redeem your cashback for crypto (an extremely volatile asset) without paying the purchase fee. Please proceed with caution. /lecture.
What we don't like
A 1% default cashback rate on purchases that don’t qualify for the bonus tiers is a hard pill to swallow, especially when other cards are flinging around 1.5% default cashback rates like it’s nbd.
Purchases must fall into one of the card’s eight bonus categories to earn 3% or 2% cashback. They are: Transportation, travel, grocery, entertainment, dining and nightlife, bills and utilities, health and beauty, and gas. Otherwise — you guessed it — it’s 1% cashback city.
Rewards card maximizers beware: Because the Venmo Credit Card’s reward rates rotate automatically based on your monthly spending, getting the highest cashback rate on as much money as you can requires keeping an eye on those spend categories as you shop.
So much for rewarding brand loyalty. You earn just 1% cashback when you use the Venmo card to send money to other Venmo users. But, but, but … do not do that, mmkay? Person-to-person payments using the card are subject to Venmo’s standard 3% fee. The fee is being waived through Dec. 31 2023, but after that, 😬. (Tip: update your selected default payment method in the app to avoid any costly surprises.)
Speaking of costly surprises, cash advances come with a nose-bleed high APR, and will cost you a pricey 5% (or $10 minimum) of the amount you withdraw.
Requires the Venmo app to apply (and an invitation to do so, which you’ll see in the app if you’re deemed worthy).
Awkward conversation alert: No joint or authorized users allowed.
The bottom line
Is the Venmo Credit Card the best rewards card for your wallet? The answer depends entirely on your spending patterns. Let the numbers speak for themselves: Use the investor.com Cashback Credit Card Calculator to see which credit card pays back the highest rewards based on how much you spend each month.
Venmo Credit Card fine print
There’s some key bold-faced stuff about Venmo Visa Credit Card fees APRs and whatnot, that you should know. Plus a longer narrative arc detailing rewards terms and conditions.
Does the Venmo Credit Card charge an annual fee?
No, there is no annual fee for the Venmo Credit Card.
Roughly 14% of the consumer cashback cards we track in our database charge an annual fee. The average annual fee is $72.60, while the median is $95.
Does the Venmo Credit Card offer a welcome bonus?
No, the Venmo Credit Card card does not currently offer a welcome bonus.
Of the more than 60 cashback credit cards in our database, 66% offer a welcome bonus. Currently, the average sign-up bonus on a new cashback card is $210.71, with the median being $200.
How much cashback can I earn with the Venmo Credit Card?
The average American that spends $1000 per month will earn $218.76 in cash back per year using the Venmo Credit Card. For comparison, the average annual rewards payout from the cashback credit cards in the investor.com database is $191.26, and $180 is the median.
These calculations are based on average consumer spending data from the Bureau of Labor Statistics (BLS) and the reward payout rates from the providers we track. Of course, you’re so much more than an average data point (aka “consumer unit,” in BLS parlance). The amount you can earn in cashback rewards using the Venmo Credit Card depends entirely on your unique spending habits.
Find out exactly how much you’ll rake in with the Venmo Credit Card by tailoring the spending inputs in the calculator above.
The results of the investor.com Credit Card Rewards Calculator are based on the monthly spending amounts you enter and the annual dollar value of the rewards each credit card program pays per $1 spent. Credit card companies often express this payout amount as a percentage (e.g., 1.5% of every dollar spent) or on a points basis (e.g. ,1.5 points for every dollar spent). We converted all of them to a dollar amount (“Cash Back Per Year”) to make comparing offers easier.
To calculate the amount of cash back you could earn per year, we factored in:
- Spend category inputs: The default dollar values for each “Spend Category” in the Best Cashback Credit Cards tool — gas, groceries, travel, restaurant, entertainment, pharmacy, other — are based on average American spending data from the Consumer Expenditure Surveys from the U.S. Bureau of Labor Statistics. We also include additional spend categories (such as streaming services, online shopping, utilities, transit, Amazon and more) to help you see which rewards cards are most closely aligned with your actual spending patterns. We encourage you to customize the monthly spend inputs for the most accurate results.
- Tiered rewards rates: If a rewards credit card pays higher cashback rates on certain spending categories (also called “Bonus Rewards”), that difference is reflected in the total “Cash Back Per Year” tally.
- Rewards spending caps: Some cards impose category- or time-based limits (monthly, quarterly, annually) that affect the amount of rewards you can earn. For example, a card may pay 3% cash back on groceries on up to $1,000 of spending each quarter, then revert to the base/default rewards rate until the following quarter. We accounted for bonus spending caps and timeframe in the calculations.
- Default rewards rates: Purchases that exceed a spending cap are usually subject to a lower default rewards rate (e.g., 1% or 1.5%). We mathed that out too.
- Annual fees: If a rewards card charges an annual fee, we deducted that amount from the “Cash Back Per Year” total to provide a true accounting of a card’s annual rewards payout.
What’s not included in the “Cash Back Per Year” total is the cash value of any sign-up/introductory bonus. We highlight any Welcome Bonus separately. While sign-up bonuses can be the most lucrative part of getting a new cashback rewards credit card, not everyone will want or be able to do what it takes to earn the extra cash. (It usually requires spending a certain amount in a specified time period after the card is activated.)
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