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Over 83 million people use Venmo, a peer-to-peer (P2P) payment app that allows you to send money to family, friends and businesses using a debit card or credit card. So you can use a credit card on Venmo – but should you? In this guide, we’ll cover that question, including the benefits and downsides of using credit cards on Venmo. We’ll also examine how to set up a credit card payment on the app, credit card safety and how to use your card for maximum benefit on Venmo. What is Venmo?Venmo is a P2P payment service and social app rolled into one. The company, which is owned by PayPal, allows you to send or receive money when you don’t want to deal with cash. The app is commonly used to split bills, allowing you to pay your roommate half of the rent, pay for your share of a dinner bill and so on. You can also use Venmo to purchase goods and services from authorized merchants using your bank account or credit card, a Venmo Mastercard Debit Card or Venmo Credit Card, or as a payment method on partner apps and websites. Should you use a credit card on Venmo?You can use a credit card on Venmo, but it may not be the best idea. As with any financial product or service, it’s always a good practice to weigh the benefits and drawbacks as they relate to your unique financial situation before making a decision. Benefits
Drawbacks
How to use a credit card on VenmoYou can change your payment method at any time before you send money or pay for a purchase on Venmo. Here’s how to select a credit card as your payment method.
Venmo allows you to add most major credit cards as a payment source, including American Express, Discover, Mastercard and Visa cards registered in your name. Keep in mind, Venmo or your card issuer may decline a card for unavailable funds or fraud prevention. Is it safe to use a credit card on Venmo?Venmo uses encryption to protect your private account information, and like banks and other payment services, they monitor your account activity to help identify unauthorized transactions. But, Venmo advises users on its website that their service is meant to facilitate payments between friends and family you trust and to avoid paying for goods and services with businesses other than authorized Venmo merchants. Your transactions may be more secure on Venmo if you use a credit card as your payment source instead of a debit card. That’s because credit cards typically provide stronger protections for consumers than debit cards. Major credit card issuers offer zero fraud liability, which means you won’t be held accountable if someone uses your card to make unauthorized purchases in your name. No matter how you make payments on Venmo, you should take preventative measures to protect your money and your identity. Set up a PIN or multi-factor authentication to add another layer of protection and safeguard against would-be thieves. Never log into your Venmo account when you are connected to public WiFi, such as at a coffee shop, library or airport. Consider opting into text notifications so that you can stay on top of purchase activity, transfers and log-in attempts. How to get the most out of using a credit card on VenmoHere’s how to optimize your credit card use on Venmo to avoid fees and get the most value:
What can you use instead of Venmo?Not sure if Venmo is for you? Here are a few other P2P payment services that may be a better fit for you. PayPalPayPal is the original P2P payment service that made it easy to send money to people you know. You can still use your PayPal balance or bank transfer as a payment method, and it won’t cost you a penny. However, the company charges a 2.9% fee (plus a $0.30 flat charge for USD transactions) when you pay using a credit or debit card. ZelleAlthough Zelle is an app, many users discover it through their banks since Zelle partners with most major banking institutions. Since Zelle is compatible with so many banks and credit unions, you can easily transfer money directly from your checking account to the accounts of friends or businesses without needing to use a third-party app. Zelle also allows you to send payments with your credit card without incurring a fee from Zelle, but it’s a good idea to contact your bank or credit union and ask if they’ll hit you with extra fees. Apple PayApple Pay integrates with iPhone making it easy to send payments to friends, family or retailers. For example, if your friend messages you requesting $25 for your half of a lunch tab, you’ll receive a pop-up notification prompting you to send that payment right now. The service accepts several payment methods, including most credit and debit cards, PayPal, Apple Card and more. You won’t pay a fee if you use a credit card to pay a business, but Apple will charge a 3% fee if you transfer money to an individual using your credit card. Bottom lineVenmo is one of the most widely used P2P payment services available, and it’s extremely easy and convenient to use. The service makes it easy to use a credit card on Venmo, which may appeal to you if you’re looking to get more perks and benefits from your rewards credit card. Just remember, you’ll likely incur a 3% transaction fee if you’re using your credit card to send money to friends and family. If you want to use a credit card on Venmo, follow the safety tips mentioned above, as well as Venmo’s advice to only use the service for payments to people you trust and Venmo-authorized merchants. Editorial Disclaimer The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners. Tim Maxwell is a freelance personal finance writer and blogger with a particular focus on credit cards and consumer lending. In 2002, he stumbled upon a copy of "The Millionaire Next Door," by Thomas J. Stanley and William D. Danko, which ignited a passion for learning and sharing fact-based money principles. Tim has a passion for demystifying personal finance and helping people live their best lives. Why can't I use my credit card on Venmo?If you're having trouble adding your credit or debit card to Venmo, the best thing to do is reach out to your card issuer to confirm that there are no issues. Oftentimes cards are declined because of a recent zip code or address change - your card issuer should be able to tell you more.
Can I send money to myself on Venmo from a credit card?Can I Venmo Myself From a Credit Card? Yes, you can Venmo yourself from a credit card. However, you must first be a Venmo cardholder to keep money in your account and use a credit card to Venmo yourself. In addition, if you use a credit card to add funds to your Venmo account, a 3% fee will be applied.
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