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Well, news just came that starting May 1, 2012, users of Venmo will only be able to charge up to a total of $500 to their credit card over the life of the account without a fee, but above that there will be a 3% fee for funds sent via credit cards–effectively ending Venmo’s potential as a points-earning payment method. Bank payments (which don’t earn you any miles/points) will remain free. If you were not already signed up for Venmo, you will only have the option to make bank payments for free starting now, so no last-minute fee-free points-earning opportunities for you, unfortunately, though you can try to use my referral link to set up your account with a credit card and take advantage of the last month or so of credit card payments. I’m not sure it will work, but can’t hurt to try!
Even though 3% may not seem like a lot, it can still pretty much negate the value of any points you earn using your credit card. Until May 1, however, at least you can charge up to $2,000 a month through the service to earn a few last-minute points.
Those of you who were at the Chicago Seminars last year might remember that I talked about Venmo, where I said that Venmo is one of the sites leading the general trend toward cashless banking. While that still might be true, I hope that they’re not at the forefront of a fee-levying trend that sees all points-earning opportunities dry up!
You can find a complete description of the new fee on Venmo’s web site. As with all good deals, they come to an end!
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