Credit Cards on Venmo – Venmo and Credit Cards Acceptance Today
Credit Cards on Venmo – Venmo and Credit Cards Acceptance Today – Venmo is one of the most popular and widely peer to peer payment platforms in the world today and this is owed to the fact that it possesses an advantage over on of its major competitors known as Zelle because unlike the later, Venmo actually allows credit card transaction. It is a simple payment service which has grown significantly and well known all across the globe. This service is used to send and receive money with anyone that is willing to sign up for a Venmo account.
The payment platform is also used by people to do things like forwarding cash to one person to cover a group gathering, sending money to an owed friend on the platform or even paying rent to your landlord. Just like with many payment services, Venmo provides a number of ways to fund the payments sent by you to others. Examples of these options include the use of your bank account, debit cards or credit cards, however, some users of the platform have reported that charges on Venmo payments usually code as purchases, and not as cash advances.
This is vital to note because besides the fact that cash advances generally do not count towards a credit card’s minimum spend for sign up bonus purposes. It also makes you start piling up large charges on cash advances from the day the charge posts rather than you getting the regular 25- or 30-days grace period to be able to settle off your bill in full. Note that Venmo Credit card transactions usually code as regular purchases but has a 3% fee attached to it so it is advisable that if you are using Venmo make sure it is for a profitable reason and not just to move money around because the company has been known to quickly shut down accounts that do not seem to be engaging in legitimate transactions.
While Credit cards can be used to send payments, funds cannot be transferred from your Venmo account to your credit card which means you will have to transfer funds to your bank account or your debit card. One thing to note is that there are some Venmo authorized businesses which are merchants that accept Venmo as a payment method. Therefore, if you purchase items at these authorized businesses, you will not be charged a fee by Venmo even if you make use of the Credit card.
There are also some Credit cards that allow you to choose the category on which you can earn the most rewards which is more than 3% rewards on some cards. This way, you can see how your credit card categorizes Venmo and know how you can enroll in that category. There is a Venmo user agreement that states that your credit card issuer may treat a transaction as cash advance if the credit card was used to pay someone through Venmo however, it also states that it is a violation of Venmo terms of service to use the platform to get a cash advance or help someone get one and because such transactions are restricted, chances are your credit card issuer is unlikely to treat Venmo transaction as cash advances.