The Venmo Visa card is an interesting take on the typical 3/2/1 credit card structure. You automatically earn 3% cash back on your eligible top spend category, and 2% on the next highest. The category resets each month, so you can always get 3% cash back wherever you spend the most money. With 8 categories to earn from, most people can effectively use this credit card.
FEATURES AT A GLANCE
- No annual fee
- No foreign transaction fees
- 3% cash back on your top spending category for each month
- 2% cash back on your second-highest spending category for each month
- 1% cash back on everything else
- Transportation
- “Ground transportation such as rental cars, taxicabs, ride share merchants, limousines, bus lines and passenger railways. This category also includes tolls, parking meters and parking garage fees.”
- Travel
- “Airlines, hotels, motels and resorts. This category may include bed and breakfast establishments, resorts, cabins, cottages, hostels, timeshares, short-term property rentals less than 30 days in length, and local inns.“
- Grocery (including wholesale clubs)
- Entertainment
- “Movie theaters, theatrical and concert promoters, video rental and game stores, books and newsstands, amusement parks, music stores, and toy and hobby stores.”
- Dining and Nightlife (restaurants and bars)
- Bills and Utilities
- “Telecommunications, internet service providers, ongoing delivery of television/radio/streaming content on a subscription or fee basis, subscription products or services (such as magazine/newspaper subscriptions), electric or gas power, water supply, and refuse disposal or other utility services.”
- Health and Beauty
- “Drug stores and pharmacies… and cosmetic stores that sell beauty products. This category also includes sports and recreation facilities that require membership such as health clubs, tennis, golf and swimming clubs.”
- Gas
SIGN UP BONUS
As of late January 2022, there’s a $200 bonus for spending $1,000 in 6 months. Venmo’s website says this offer expires 3/31/22.
Between October and November 2021, Venmo offered a $100 bonus for spending $1,000 within 6 months of opening the card.
OTHER BENEFITS OF THE VENMO CARD
- Integration with Venmo’s app (pay, split, use a virtual card number, etc.)
- Personalized QR code on the card which goes to your Venmo profile
- Visa Signature benefits (if eligible, otherwise Visa Traditional benefits)
RESTRICTIONS AND CREDIT SCORE
Recommended credit score: 670+
Venmo’s site says “Application subject to credit approval. You must be at least 18 years old and reside in the US or its territories to apply. You must have a Venmo account in good standing, that has been open for at least 30 days prior to application.” The card is issued by Synchrony Bank, and some people dislike their customer service.
Financial websites reported a limit of $10,000 in annual spending for Venmo’s 3% and 2% categories. However, Venmo removed that limit in late 2021. As of September 2021, the rewards agreement explicitly denies a limit. Their terms page says “There is no minimum amount of Eligible Purchases required before earning Cash Rewards. There is no maximum amount of Eligible Purchases that may earn the 3% and 2% Cash Rewards.”
MAXIMIZING REWARDS WITH THE VENMO CARD
There aren’t any strategies for optimizing your cash back. Rewards are automatically added to your Venmo balance at the end of each billing period. They’re also unlimited (no earning cap on cash back.)
One interesting feature is that Venmo can automatically convert your monthly cash back into cryptocurrency (four options) without any transaction fees. Venmo does, however, earn a spread on the purchase or sale of crypto. So you may get a better deal by buying crypto on a standalone exchange. YMMV.
ALTERNATIVES TO THE THE VENMO CARD
Citi Custom Cash Card (CCCC) is better for single-category spending like groceries. It has a spending limit ($500 per month) but earns 5% cash back instead of 3%. Your top spending category is also automatically calculated like Venmo. One exception to CCCC is if you’re getting groceries at wholesale clubs like Costco or Sam’s Club. Venmo earning 3% cash back there is useful.
Venmo is only worth considering for its one 3% category. Having a general 2% card for non-category spending makes the 2% category obsolete, and doubles what you’d get for the 1% “everything else.” Fortunately, Venmo is still good in certain categories.
Venmo is a decent option for Transportation and Travel. It’s one of the few no-fee cards with unlimited cash back rewards. For our best-of-travel list, click here. Venmo is also great for bills/utilities and health/beauty categories.
For groceries, entertainment, streaming, and dining/nightlife, consider the Capital One SavorOne which earns 3% cash back in all of these categories. For gas, look into the Abound Credit Union Visa Platinum which earns 5% cash back. For our full best-of-gas list, click here.
CONCLUSION
The Venmo card has some interesting features, but it really only gives people 3% cash back in one particular category. This isn’t impressive, considering that some credit cards give 3% cash back (or more) in 3-4 categories. Venmo is, however, good at filling in gaps in your spending habits. If there’s a category where you’re only earning 1-2% cash back, Venmo is a solid addition.
Categories are reasonably broad, and most people should be able to get decent use from the Venmo card. It’s best for travel, ground transportation, bills/utilities, health/beauty, and entertainment categories. If your personal spending habits match up with Venmo, and you like the Venmo app, this is a great option to apply for. Just note that it might be possible to have better optimization with different card combinations.
We rate the Venmo card card 3 out of 5 stars. ⭐⭐⭐
Note: This review was last updated in January 2022. Details may have changed since then. Please do your own research where applicable, to ensure you’re getting the best deal. Or contact us directly to benefit from our personalized consulting services!