Venmo has become a popular way for users to conveniently send money to friends and family. But can you also leverage Venmo to pay down credit card bills? In this comprehensive guide we’ll explore using Venmo to pay credit card statements, outlining key steps tips, and considerations.
Overview of Venmo for Credit Card Payments
Venmo is a mobile payment app owned by PayPal that allows users to transfer money directly between accounts. It offers a streamlined way to split bills, pay friends back, and more
In recent years Venmo introduced a Venmo credit card and additional features to facilitate paying recurring bills through the app. This opens up the possibility of using Venmo balances to pay off credit card statements.
While not as seamless as paying a Venmo-issued card, Venmo can act as an intermediary account to ultimately cover non-Venmo card payments. We’ll walk through how the process works.
Linking a Credit Card on Venmo
To pay a credit card using Venmo, you first need to link the card as a payment method within the Venmo app or account settings.
Here are the steps to add a card:
- Open the Venmo app and tap the profile icon in the top-right.
- Select “Settings” then choose “Payment Methods”.
- Tap “Link New Card”.
- Enter your credit card information and billing details.
- Confirm the CVV security code when prompted.
- Venmo will process a small authorization charge to verify the card.
The card should now be available as a payment option when transferring funds out of Venmo.
Critical Considerations for Paying Credit Cards with Venmo
Before using Venmo to pay your credit card bill, note these key factors:
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Ownership – The Venmo and credit card accounts must have the same owner name and identifying details.
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Verification – Venmo will verify identity and account ownership before allowing card linkage.
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Fees – Venmo does not charge fees for standard digital transfers. But credit card companies may assess cash advance fees if funds are sent from a linked credit card rather than bank account.
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Timing – Transfers can take 1-3 business days to move from Venmo to external bank/card accounts. Initiate payments well ahead of credit card due dates.
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Balance – Ensure your Venmo account has sufficient funds to fully cover the credit card payment amount before transferring.
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Proof – Retain digital receipts from Venmo as records of payment in case issues arise.
As long as you understand the requirements and allow enough processing time, Venmo can work for paying credit card bills.
Step-by-Step Guide to Paying Credit Cards with Venmo
Follow these key steps to safely and effectively use Venmo balances to pay down your credit card statement:
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Open Venmo App – Log into your Venmo app from mobile device or at Venmo.com.
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Transfer Funds – Initiate a standard transfer from your Venmo balance to your connected bank account.
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Specify Amount – Transfer the exact amount needed to pay your credit card bill. Include any extra time for funds to fully settle.
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Confirm Details – Double check the destination bank account and amount before completing the transfer.
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Check Status – Monitor the transfer status under “Activity” to ensure it completes successfully.
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Pay Card Bill – Once funds fully transfer to your bank, log into your credit card account and make a payment using your bank account.
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Retain Receipts – Keep Venmo transfer receipts and credit card payment confirmations for records.
With this process, Venmo serves as the intermediary facilitating the ultimate credit card payment.
Tips for Seamless Credit Card Payments with Venmo
To ensure smooth transactions when paying credit cards with Venmo, keep these tips in mind:
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Allow time – Start transfers up to 3 business days before your credit card due date to be safe.
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Track status – Follow the transfer progress closely in your Activity. Contact Venmo support promptly for any issues.
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Meet minimums – Don’t pay incomplete credit card payments. Venmo transfer the full statement balance or minimum amount.
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Create reminders – Set calendar alerts for upcoming due dates and Venmo transfer timelines.
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Mind limits – Venmo has weekly rolling limits on transfers out, usually around $3,000-5,000.
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Avoid fees – Use bank account not credit card to transfer funds from Venmo to avoid cash advance fees.
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Verify identity – Ensure all account ownership information matches across Venmo and credit card accounts.
Advantages of Paying Credit Cards with Venmo
While a few more steps are involved compared to direct payments, using Venmo to facilitate credit card payments can be advantageous:
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Convenience – Make quick payments from anywhere via the Venmo mobile app.
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Flexibility – Use Venmo across various credit card brands without restrictions.
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Rewards – Continue earning points/miles by meeting spend requirements.
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Simplicity – Consolidates payments and money transfers into one app.
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Affordability – Venmo itself does not charge fees for standard bank/card transfers.
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Security – Venmo leverages encryption and fraud monitoring safeguards.
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Speed – Faster than waiting for checks or mailed payments to process.
For those already using Venmo, it can provide a handy option for credit card bill payments as needed.
Consider the Venmo Credit Card
An even more seamless bill pay experience can be achieved with the actual Venmo Credit Card, issued in partnership with Synchrony.
The Venmo Credit Card links directly to your Venmo account, allowing you to:
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Pay your Venmo credit card balance directly within the Venmo app.
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Use money in your Venmo balance to make credit card payments.
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Setup automatic payments from linked bank accounts.
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View statements and payment history in the app.
While not accepted universally, the Venmo Credit Card maximizes the app’s convenience for purchases, payments, and account management.
Pay Credit Cards Seamlessly with Venmo
Using Venmo to pay your credit card bill involves a few more steps compared to directly linked options. However, Venmo still provides a quick and convenient intermediary account to transfer funds as needed to make external credit card payments.
The digital receipts and confirmation also make it easy to document your payments. Just ensure you initiate transfers 3 or more days early to allow time for settlement.
Together with online credit card bill pay, Venmo can modernize and simplify your credit card payments.
Using a credit card on Venmo
First off, can you use a credit card on Venmo?
Yes, you can send payments with a credit card on Venmo, although it’s important to know the pros and cons of doing so beforehand.
Pros of using a credit card on Venmo:
The most sensible way to use a credit card on Venmo is when you are trying to meet minimum spending requirements in order to earn your credit card’s sign-up or welcome bonus.
Also, if you’re strapped for cash, you can use a credit card to pay someone over Venmo without risking overdrafting your checking account or keeping your friend waiting. Just be sure to pay off your credit card as soon as possible so that you wont owe hefty interest charges and end up in debt. Doing so will also help boost your credit score.
Cons of using a credit card on Venmo:
On the other hand, there are drawbacks to using a credit card on Venmo: fees.
When using a credit card on Venmo, you’ll be charged a 3% fee when making a payment. No fee will be charged if using a debit card or bank account. So, even if you pay with a rewards credit card like a 2% back card, you will likely lose money on Venmo payments linked to credit cards.
Also, when sending payments to friends and families with a credit card over Venmo, your card issuer may code the transaction as a cash advance, resulting in more fees and a higher interest rate. You also won’t be able to transfer any Venmo balances onto your credit card.
Venmo may not recognize some cards. For example, Health Savings Account cards may be difficult to link to your Venmo account.
Remember that most peer-to-peer payment apps do not offer fraud or purchase protection as a credit card might. Moreover, the cash you keep in the app is usually not FDIC-insured. Readers should also be cautious of apps offers to take out Buy Now, Pay Later loans or to convert cash to Bitcoin.
A better option: Consider using Apple Cash; when linked to the Apple Card, Apple Cash charges no fee and gives you cash back.
Is it safe to use a credit card on Venmo?
Venmo is mostly safe — but with some important caveats. Like other peer-to-peer payment apps, Venmo is increasingly vulnerable to scammers, and customers have complained about how the company has handled these problems.
Venmo encrypts your account details, and the app also uses multi-factor authentication to confirm your identity. You can also set up a unique PIN code and/or use Touch ID to provide another layer of security to your account.
Just be sure not to fall for any of the most common scams on Venmo, and think twice about storing money with Venmo; unlike banks, money stored on payment apps is not under Federal Deposit Insurance Corporation (FDIC) protection.
The risk of scams has led to lawmakers calling for further protections for users.
In early August, Rep. Maxine Waters, D-CA, and Sens. Richard Blumenthal, D-CT, and Elizabeth Warren, D-MA, introduced a bill, the Protecting Consumers from Payment Scams Act, that would enact further protections for users in the face of scams. Its an update to the Electronic Fund Transfer Act (EFTA), which protects customers in cases of lost or stolen credit cards and was passed in 1978.
Actions are also happening on the state level. For example, earlier this year, New York state officials introduced the Financial App Security Act, which would require companies that offer peer-to-peer mobile payment services, like Venmo, to enact security measures designed to protect consumers from financial fraud and theft.
✅ Can You Use A Credit Card On Venmo
FAQ
Can I make a credit card payment with Venmo?
Why can’t I pay my credit card with Venmo?
Can you use Venmo to pay bills?
How much does Venmo charge for credit card payments?
Can I use the money in my Venmo account to make payments?
You can use the money in your Venmo account to make payments towards your Venmo Credit Card bill. However, it’s important to keep in mind that Venmo Credit Card payments are funded by a single payment method.
How do I pay my Venmo credit card bill?
Open your Venmo app and go to your Venmo Credit Card section. Tap “View and Pay” next to the credit card bill you want to pay. Choose your payment amount and select a payment method. You can use money in your Venmo balance, bank account, or debit card. Review the payment details and submit. Once submitted, the payment processes instantly!
Does Venmo charge a fee if I use a credit card?
When using a credit card on Venmo, you’ll be charged a 3% fee when making a payment. No fee will be charged if using a debit card or bank account. So, even if you pay with a rewards credit card like a 2% back card, you will likely lose money on Venmo payments linked to credit cards.
Does Venmo charge cash advance?
Additionally, your credit card company may charge cash advance fees if you use your credit card to make payments on Venmo. According to Experian, the most common cash advance fee structure is 5% of the advance amount or $10, whichever is more, but it ultimately depends on your card issuer. Is it safe to use a credit card on Venmo?
Should you sign up for a Venmo credit card?
Signing up for the Venmo credit card will simplify your payments even further. But even without the branded card, Venmo offers a convenient intermediary account to transfer funds and take care of bills. Next time your credit card payment comes around, consider leaving the stamps and checks behind. Pay smarter using Venmo instead!
How does Venmo credit card work?
Venmo Credit Card holders can pay bills using their Venmo balance and earn cash-back rewards on their purchases too. The rewards offered by Venmo on Venmo Card include: Venmo automatically adds cash back rewards to the users’ accounts at the end of each statement period.