Venmo Credit Card review: Bonus cash back for fans of Venmo

Venmo Credit Card overview

The Venmo Credit Card offers a seamless connection with your Venmo account and has no annual fee, plus it adapts to your spending habits automatically with its bonus categories. Those looking for uncomplicated cash back without frills will enjoy this card. Card rating*: ⭐⭐⭐

*Card rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.

The information for the Venmo Credit Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

The Venmo Credit Card is issued by Synchrony Bank, is available in five colors and bears the name of a popular peer-to-peer payment system. However, the card is more than just the name it bears, offering a quality earning structure and a choice of redemption options that will please many people.

Despite the uniqueness of choosing which color you want your card to be, the lack of an annual fee on the Venmo card also leads to a lack of perks you may be looking for in a credit card.

Does the Venmo card deserve a place in your wallet? Here's what you need to know to make that decision.

Venmo Credit Card welcome offer

The Venmo card occasionally offers welcome bonuses. However, a bonus isn't available all the time, changing the value attained when you apply for the card.

You may see limited-time welcome offers, such as earning $150 after meeting certain spending requirements, in your Venmo account. If you want to apply, wait until a similar bonus is available.

Earning cash back on the Venmo Credit Card

Getting a credit card that earns extra points or cash back in the categories where you spend money regularly is important. However, spending habits change.

What if you have to choose your preferred categories in advance, then a large bill comes up? Cards that adjust automatically to your spending habits — including the Venmo Credit Card — can be ideal for this scenario.

You'll earn 3% cash back in your top spending category each billing period, with the category adjusting automatically based on which of the following categories you use most:

• Bills and utilities (including ongoing subscriptions, such as streaming).
• Dining and nightlife.
• Entertainment.
• Gas.
• Grocery (including wholesale clubs).
• Health and beauty.
• Transportation.
• Travel.
• Other.

You'll earn 2% back on your next-highest spending category and 1% back on other purchases.

There are no earning limits, which is a nice perk to this earning structure. Other cards with similar earning structures limit how much you can earn in the top bonus category. For example, the Bank of America® Customized Cash Rewards credit card has a limit of $2,500 each quarter, which is shared across your 3% and 2% cash-back categories. After passing the $2,500 threshold, you'll earn just 1% back in your top spending category.

Do note that you won't earn cash back when sending money, such as electronic funds transfers, money transfers or wire transfers.

Related: 5 reasons to add the Venmo Credit Card to your wallet

Redeeming cash back on the Venmo Credit Card

All rewards from the Venmo card will be added to your Venmo account balance within three days of a statement closing. You have two options for your earnings.

First, you can use the cash back in your Venmo balance to pay bills or send money to friends.

Alternatively, you can redeem your earnings to auto-purchase cryptocurrencies. Options include Bitcoin, Bitcoin Cash, Ethereum and Litecoin. Purchasing automatically has no cryptocurrency transaction fee, unlike standard cryptocurrency purchases with Venmo.

Related: Interested in earning crypto on your credit cards? Here’s what you need to know

Since your rewards are redeemed as cash, they have a flat-rate value of 1 cent. With fixed-rate rewards, you'll never wonder what your earnings are worth. This can be a strong part of your overall points and miles strategy.

Related: Why you should get a fixed-rate rewards credit card

Venmo Credit Card benefits

The Venmo card can be issued as a Visa Traditional or Visa Signature card. Depending on the card type you receive, you'll enjoy benefits like emergency card replacement and emergency cash disbursement, auto rental collision damage waiver, zero liability policy and roadside dispatch. Those with a Visa Signature card also have benefits with Shipt, Sofar Sounds, Skillshare and NortonLifeLock.

Related: Everything you need to know about Visa Signature card benefits

The Venmo card has your personal QR code on it, so people can scan it and go straight to your Venmo profile to send you money. The card also is integrated with the Venmo app to track activity, and you can apply payments from friends directly to your credit card bill.

You also can access a virtual account number instantly after card approval, meaning you can use the card right away while waiting for it to come in the mail.

Related: Are mobile wallets safe?

As a no-annual-fee card, don't expect perks like travel credits, lounge access or travel insurance. If you're looking for those benefits, consider a travel rewards credit card.

Which cards compete with the Venmo Credit Card?

In addition to the Venmo Credit Card, there's the Venmo Debit Card, which can earn cash back from Venmo Offers powered by Dosh. However, if you're looking for a credit card, it's worth evaluating these alternatives to see if they're a better fit for you:

• If you want a card from a payment app and 2% back on everything: The PayPal Cashback Mastercard® has no annual fee and offers 3% cash back on PayPal payments and 2% back on other purchases. Depending on your spending habits, you may come out ahead with this earning rate.
• If you want a higher earning rate by choosing categories in advance: The U.S. Bank Cash+® Visa Signature® Card earns 5% cash back in two pre-chosen categories, plus 2% back on another category of your choice. However, you'll only earn 5% back on $2,000 of purchases across your chosen categories. This card has no annual fee (see rates and fees). For more information, check out our full review of the Cash+ Visa card.
• If you want additional options for using your earnings: The Citi® Double Cash Card earns 2 Citi ThankYou points per dollar spent on all purchases — 1 point per dollar when making the purchase and 1 point per dollar when paying your bill. You can cash out your points or use them with travel partners for additional flexibility. For more information, check out our full review of the Citi Double Cash.

The information for the PayPal Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

For additional options, check out our full list of the best cash-back credit cards and the best credit cards with no annual fee.

Related: A roundup of cards that earn cryptocurrency rewards

Is the Venmo Credit Card worth it?

For fans of Venmo, this may be a great card since you'll earn cash back on categories that adapt to you. However, if you don't use the Venmo app often, needing to do so to use the Venmo Credit Card could be a big adjustment. The card also lacks insurance protections or feature benefits beyond its earning rates, which may be a deal breaker for some.

Related: TPG's Venmo guide for beginners: How to make the most of small, but mighty, perks

Bottom line

Earning extra cash back in categories that adjust to you (and do so automatically) can be great, assuming this isn't done at the expense of your everyday purchases. If your purchases are varied, you may do better with a card that earns extra cash back across multiple categories or earns 2% back on every purchase. However, if you use Venmo frequently and your spending habits are often skewed into one spending category, you could get good value from the Venmo Credit Card.