New Venmo Card Personalizes Rewards
The Venmo Visa Credit Card pays you 3% cash back in the category in which you spend the most.
When you’re looking for a rewards credit card, it makes sense to review your spending patterns and choose one that offers a high rate of cash back or points in the categories in which you spend the most. But if your top spending categories tend to vary, a new card from peer-to-peer payment service Venmo is a compelling option: It automatically rewards you in the categories with the highest spending each month.
The Venmo Visa Credit Card pays you 3% cash back in the category in which you spend the most during a statement cycle (the categories include groceries; gas; dining and nightlife; travel; bills and utilities; health and beauty; entertainment; and transportation). You get 2% back in the category in which you spend the second-highest amount and 1% back on other spending.
No spending limit applies the first year you have the card. Each year after that, combined spending in the 2% and 3% categories is capped at $10,000, with purchases earning 1% after you hit the limit. The card was recently offered to select users of the Venmo app and will become available to all U.S. users in the first quarter of 2021.
Sign up for Kiplinger’s Free E-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.
Cash back is automatically added to your Venmo account, and you can transfer it to your linked bank account or debit card. You can also use it to pay your credit card bill, other Venmo users or merchants that accept Venmo at checkout.
More rewards from Chase. Chase has closed applications for its Chase Freedom card and introduced the Chase Freedom Flex Mastercard. Like the previous card, Flex offers 5% cash back on up to $1,500 spent in a category that changes each quarter (2021 categories were unavailable at press time; the 2020 fourth-quarter category included Walmart and PayPal purchases). But all year, Flex also provides 5% back on travel bookings made through Chase, 3% back at restaurants and 3% back at drugstores. Other spending gets 1% back. The card recently offered 5% back on up to $12,000 in grocery store purchases the first year, too. Rewards are earned as points, which you can exchange at a rate of a penny apiece for cash, gift cards or travel.
Lisa has been the editor of Kiplinger Personal Finance since June 2023. Previously, she spent more than a decade reporting and writing for the magazine on a variety of topics, including credit, banking and retirement. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.
-
Strategies to Optimize Your Social Security Benefits
To maximize what you can collect, it’s crucial to know when you can file, how delaying filing affects your checks and the income limit if you’re still working.
By Jason “JB” Beckett Published
-
Don’t Forget to Update Beneficiaries After a Gray Divorce
Some states automatically revoke a former spouse as a beneficiary on some accounts. Waivers can be used, too. Best not to leave it up to your state, though.
By Andrew Hatherley, CDFA®, CRPC® Published
-
403(b) Contribution Limits for 2024
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Published
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Published
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
-
Five Ways to a Cheap Last-Minute Vacation
Travel Procrastinator? No matter. You can pull off a fun and memorable getaway on a moment's notice — without breaking the bank.
By Vaishali Varu Last updated
-
How Much Life Insurance Do You Need?
insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life-insurance needs.
By Kimberly Lankford Published
-
Five Reasons You Shouldn't Shop on Amazon Prime Day
Smart Buying Think twice before getting lured into buying a bunch of stuff you don't need just because it's on sale.
By Andrea Browne Taylor Published
-
When Is Amazon Prime Day?
Amazon Prime In 2023 Amazon had two Prime Day events — one in July and another, called Big Deal Days, in October. We expect 2024 to follow the same schedule.
By Bob Niedt Last updated
-
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
By Kaitlin Pitsker Published