Venmo Credit Card Review: Cash-Back Rewards Get Personal, and Automated

Personalized rewards across a broad range of categories

The Venmo Credit Card doesn't require opting in or activating bonus categories. You don't really even need to "track" anything. For each monthly billing cycle, you'll simply earn bonus rewards in the top two categories you spend the most on (from the above list), and 1% back on other spending. Once the billing cycle ends, your earning opportunities reset.

Here’s how this could work: Let’s say you booked a trip this month requiring plane tickets and a hotel booking, so you spent the most on travel and would earn 3% cash back on those expenses. Your next highest spending was on bills and utilities, so that earns 2% back. The next month, you go on your trip and dine out often, turning that activity into your 3% cash-back category.

Some business and consumer credit cards also offer this automated personalization. The HMBradley credit card features it, but you must open an HMBradley deposit account first. The Citi Custom Cash® Card earns 5% cash back on up to $500 in spending each billing cycle in your highest eligible spending category (1% back after that), and 1% on other purchases.

Easy redemptions

Any cash back you earn will appear in your Venmo balance after your statement closes. From there, you can apply the money toward a credit card bill (much like a statement credit), make purchases from a merchant that accepts Venmo, send money to someone else through the Venmo app or transfer it to a linked bank account or debit card.

Use rewards to buy crypto

In August 2021, Venmo Credit Card’s reward redemption options expanded to include cryptocurrency.

You need to opt-in to enable the auto-purchase feature of the Cash Back to Crypto option, and you won't incur an additional transaction fee. But a cryptocurrency conversion spread will be built into each monthly transaction. That means Venmo will charge a small margin between the crypto market price and the current exchange rate.

If you’ve opted in and you have a cash back balance greater than $1, any cash back in your account will automatically be used to purchase the cryptocurrency of your choice. As of August 2022, you can buy one of four cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Venmo charges a fee when you buy or sell, which varies according to the value of the cryptocurrency.

» MORE: Best crypto credit cards

Unique card design that makes splitting costs simple

Each physical card features its own QR code on the front, which comes in handy when you’re splitting a purchase with another person. They can scan the QR code from the Venmo app and be brought to your Venmo profile. From there, they can send money, or request money from you. Keep in mind that paying a friend over Venmo using the Venmo Credit Card means you’ll pay a 3% fee, which is the same as using any other credit card for peer-to-peer transactions.

Instant access upon approval

While your physical card is in the mail, you can begin making purchases with the virtual version of the card, which lives within the Venmo app and can also be added to digital wallets. Once the physical card arrives, you can activate it by scanning the QR code.

» MORE: Credit cards you can use instantly after approval

Manage the card on the Venmo app

If you need to pay your balance, see your rewards activity, change notifications, set up autopay, or track your spending trends or transactions, you can do so through the Venmo app. If your physical card is lost or stolen, you can disable it in the app and continue to shop with the virtual card. There’s no separate website to log into. (For some, this may count as a drawback; see below.)

MORE NERDY PERSPECTIVE

Welcome bonus is a moving target

The Venmo Credit Card currently offers bonuses on a limited-time basis. So if you want the bonus, you'll have to time your application carefully. Other cards consistently sweeten the deal with welcome offers worth $150 or more, which can help offset the annual fee some of them charge. One example is the Blue Cash Preferred® Card from American Express, which offers this welcome bonus: Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months. Terms Apply. The card also earns generous cash-back rates in several common spending categories. It charges a $0 intro annual fee for the first year, then $95. If that's too high, consider its sibling card, the $0-annual-fee Blue Cash Everyday® Card from American Express. Its rewards are also useful, though less robust. Terms apply (see rates and fees for the Preferred version; see rates and fees for the Everyday).

Many spending categories earn only 1% back

You earn 3% or 2% cash back in only two spending categories per month. Any other spending earns only 1%. If you have a month where you spend a lot at a home improvement store, for example, other cards will reward you more handsomely. However, you could pair the Venmo Credit Card with a flat-rate card like the Citi Double Cash® Card, which earns 2% cash back on all purchases: 1% when you buy, 1% when you pay it back.

» MORE: Credit card coupling: Pair up your credit cards to maximize rewards

Not a starter credit card

While Venmo’s audience skews younger, the Venmo Credit Card requires good to excellent credit to qualify (corresponding to a FICO score of at least 690). A seasoned Venmo user who is still new to building credit may need to set their sights on a starter credit card for now.

You must use it with the Venmo app