Can You Use a Credit Card on Venmo? Fees, Security and More to Know
Here’s what you need to know about using a credit card on Venmo.
Like other peer-to-peer (P2P) payment apps, Venmo makes sending money to family, friends or businesses convenient, quick and secure. Whether you're paying back your share of last night's dinner bill or sending money to a nephew on their birthday, "venmoing" someone lets you easily transfer cash from your bank account to theirs.
When setting up an account with Venmo, you link and verify a bank account from which your digital payments will be sent.
But what if you don’t want funds to be drawn from your checking or high-yield savings account? With Venmo, it is possible to link payments to a credit card, including your favorite rewards credit card — but it may not be worth it.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Here’s what you need to know about using a credit card with Venmo, from fees to set-up and more.
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 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 won't 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.
How much does Venmo charge for using a credit card?
Venmo charges a 3% fee for payments made with a credit card. 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?
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. It's 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.
How to use a credit card on Venmo
Here’s how to add a credit card to your account, according to Venmo, on the Venmo app:
- Go to the "Me" tab by tapping your picture or initials
- Go to the Wallet section
- Tap “Add bank or card...” and then tap “Card”
- Add your card information manually or with your phone’s camera
To add a card to your Venmo account from a computer, go to your payment methods then follow these steps:
- Click "Add bank or card"
- Select "Debit or credit card" then add your card information
Bottom line on using a credit card on Venmo
While using a credit card to send payments over Venmo is technically possible, it's not advised. You'll be charged a 3% fee for using a credit card on Venmo, plus any other cash advance fees charged by your bank.
Even if your card earns cashback on the payment, you'll still likely lose money. That's why it's wiser to consider a cash back credit card, as it earns you perks on everyday purchases without the transaction fee.
Related Content
-
Gray Divorce After 50: Managing the Shift to Your Solo 'Second Act'Gray divorce presents complex challenges for families, yet it can also catalyze self-discovery and a vibrant new chapter.
-
The Paradox Between Money and Wealth: Finding the BalanceWealth reflects a life organized around relationships, health, contribution and time — qualities that compound differently than money in a mutual fund.
-
Billed 12 Hours for a Few Seconds of Work: AI and Law FirmsThe ability of AI to reduce the time required for certain legal tasks is exposing the legal profession's reliance on the billable hour.
-
Billed 12 Hours for a Few Seconds of Work: How AI Is Helping Law Firms Overcharge Clients
The ability of AI to reduce the time required for certain legal tasks is exposing the legal profession's reliance on the billable hour.
-
Will Soaring Health Care Premiums Tank Your Early Retirement?If you're under 65 and want to retire soon, your plan may be derailed by skyrocketing ACA marketplace premiums. Here's what you can do.
-
I'm a Financial Adviser: Here's How to Earn a Fistful of Interest on Your Cash in 2026 (Just Watch Out for the Taxes)Is your cash earning very little interest? With rates dropping below 4%, now is the time to lock in your cash strategy. Just watch out for the tax implications.
-
What to Watch for When Refinancing Your Home MortgageA smart refinance can save you thousands, but only if you know how to avoid costly pitfalls, calculate true savings and choose the right loan for your goals.
-
The 10 Best Splurge Destinations for Retirees in 2026Come for the luxury vacation. Retire for the lifestyle (if the vacay goes well). What better way to test a location for retiring abroad?
-
My First $1 Million: US Government Worker, 47, OverseasEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
What Changed on January 1: Check Out These Opportunities Created by the New Tax LawA deep dive into the One Big Beautiful Bill Act (OBBBA) reveals key opportunities in 2026 and beyond.
-
Beat the Money Blues With This Easy Financial Check-In to Get 2026 Off to a Good StartAs 2026 takes off, half of Americans are worried about the cost of everyday goods. A simple budget can help you beat the money blues and reach long-term goals.
