Only Venmo app users who are invited to apply for the Venmo Credit Card, issued by Synchrony Bank, can actually get the card right now, but all U.S. app users will be able to apply in the near future. For the chosen few selected, it’s a great tool for earning cash-back rewards, especially if your spending habits change from month to month.
For people who use the Venmo platform, the Venmo Credit Card is a good fit since managing the card, tracking rewards, and using the card for payments will feel very intuitive via the app.
Unique rewards structure
Good integration with the Venmo app
The card’s QR code feature is convenient
No break on Venmo transaction fee when using the card
No welcome bonus
Bonus category limit
- Unique rewards structure: There aren’t any other cards on the market that let you earn bonus rewards in different categories each month without lifting a finger. Your top category might be groceries one month, travel the next, and dining after that, and the Venmo Credit Card does all of the tracking for you—you never have to opt in.
- Good integration with the Venmo app: When you earn cash back, Venmo automatically adds it to your account at the end of each statement period. You can then use those earnings however you’d normally use your Venmo balance or put it toward your credit card bill. In addition, you will do all of your card management through the app, including making payments, setting up alerts, viewing transactions, and more.
- The card’s QR code feature is helpful: Each credit card transaction you make has a QR code you can send to other Venmo users if you need to split payments on a purchase. The payments those Venmo users make via the QR code go directly toward your credit card balance.
- No break on Venmo transaction fee when using the card: When you pay someone with Venmo using your Venmo credit card as the payment source, you pay a 3% transaction fee (standard for all credit card payments made to other Venmo accounts).
- No welcome bonus: There’s no big, enticing offer for new cardholders. Many other comparable cash-back cards offer bonuses of up to $200.
- Bonus category limit: There is one catch with the bonus 3% and 2% cash-back earnings—they decrease to 1% once you spend $10,000 for the year. You will go back to the higher earnings rates after your account anniversary each year.
Earning Points & Rewards
You’ll earn 3% cash back in your top spending category each month, 2% back in the next highest category, and 1% on all other purchases. After spending $10,000 in a year, all spending will earn 1%.
You’ll earn 1% cash back if you use your card to send money to other Venmo users. However, Venmo will charge you 3% to do it, which results in a loss of 2%.
Venmo breaks down purchases into eight spending categories:
- Bills and utilities
- Health and beauty
- Dining and nightlife
So, one month, you might spend more at restaurants or pay a big utility bill, and then the next month, you might book a trip and stock up your pantry with groceries. No matter how often your top two highest spending categories change, Venmo will shift the 3% and 2% earning rate to match your purchases accordingly.
Even though Venmo does the number-crunching for you, it’s worth noting that categories are slightly different than those with other rewards cards. For example, Venmo lumps together streaming and newspaper subscriptions with cell phone bills and gas and electric bills in the “bills and utilities” category.
You don’t have a catalog of merchandise, gift cards, or other redemption options to choose from with the Venmo Credit Card. It’s much simpler than that: All of your earnings are automatically credited to your Venmo account after every billing period. Once your rewards appear in your account, you can use them however you’d like, whether it’s to pay your yoga instructor, transfer the balance into a linked bank account, or put it toward your Venmo credit card bill.
How to Get the Most Out of This Card
Venmo users who love the app will enjoy using this card as an extension of the platform. But where it really shines is with its personalized rewards structure. It’s a good card to use for spending that you aren’t already being rewarded well for on other cards.
For instance, if you have a travel rewards card that’s focused on points and miles for hotels and flights, you could use your Venmo card to get a better rewards rate from categories your travel card may not offer higher rewards rates for like health and beauty or entertainment.
If the people you socialize with are Venmo users, pay for group outings with your card to earn your cash back, and then have the other Venmo users send their funds to your Venmo card the day of to avoid carrying a balance.
Venmo Credit Card’s Other Benefits
Venmo offers a Visa and Visa Signature version of their card. Your benefits vary based on which card you get.
- Roadside assistance hotline
- Concierge for booking event tickets, travel, and other services
- Travel and emergency hotline
- Visa Luxury Hotel Collection benefits
- Roadside assistance hotline
In J.D. Power’s 2020 U.S. Credit Card Satisfaction study, Synchrony ranked seventh out of 11 national issuers. It scored 800 out of 1,000 possible points. The industry average was 810.
For the most part, however, you will do most of your account management right on your Venmo app. If you have any questions or issues with your account, Synchrony phone-based customer service is available 24/7.
The Venmo Credit Card offers standard security features like Visa’s zero liability. It also has contactless payment (tap to pay) technology, and you can request a virtual card number at any time to make any online payments even more secure.
Venmo Credit Card’s Fees
The Venmo Credit Card has no annual or foreign transaction fees, and late fees are on par with most cards.