Yes, you can send money on Venmo with a credit card, but it costs you
Venmo accepts credit cards as a payment method, but the platform charges a 3% fee on every transaction you make with one. That means sending $100 costs you $3 extra. If you link a debit card or bank account instead, there is no fee. Most people use Venmo's free options and reserve credit cards for situations where they need to send money but don't have cash or a bank account available.
The fee applies whether you're sending money to a friend or paying a business. Venmo doesn't refund the fee if you change your mind, so it's worth understanding the cost before you tap send.
Key Takeaways
- Venmo charges a 3% fee when you send money using a credit card, but charges nothing for debit cards or bank accounts.
- You can add a credit card to your Venmo account in the settings menu and select it as your payment method when you send money.
- The fee is calculated on the total amount you send, so a $50 payment costs $1.50 in fees.
- Venmo's free options (debit card or bank account) are faster and cheaper, so use a credit card only when you don't have those methods available.
How to add a credit card to your Venmo account
Open the Venmo app and tap the menu icon (three horizontal lines) in the bottom right corner. Select "Settings," then tap "Payment Methods." Choose "Add a bank account or card" and select "Credit or Debit Card." Enter your card number, expiration date, CVV, and billing zip code. Venmo will ask you to confirm your identity—you may need to provide your full name, date of birth, and last four digits of your Social Security number.
Once your card is added, it appears in your payment methods list. You don't have to use it every time you send money—you can choose which card or account to pay from each time you make a transfer.
Sending money with your credit card on Venmo
Tap the payment icon (the arrow pointing up) on the Venmo home screen. Enter the name or phone number of the person you're sending money to, then type the amount. Tap "Next" and you'll see a screen asking which payment method to use. Select your credit card from the list. Venmo will show you the 3% fee before you confirm—this is your final note to change your mind or pick a different payment method.
Tap "Pay" to complete the transfer. The money reaches the recipient's Venmo account when ready, though they may need to transfer it to their bank account to access the cash, which takes one to three business days depending on their bank.
When the 3% fee might be worth it
The fee stings on large amounts, but there are situations where paying it makes sense. If you're splitting a bill with someone and you don't have your debit card or bank account linked, a credit card gets the money to them when ready rather than waiting for you to find another way to pay. If you're earning cash back on your credit card, the rewards might offset some of the 3% fee—though you'd need to earn at least 3% back to break even.
Some people use Venmo with a credit card to build their credit history, since credit card transactions report to the credit bureaus while debit card and bank account transfers do not. That's a valid reason to accept the fee, but only if you're paying off the balance in full each month.
Why Venmo charges this fee and what the alternatives are
Venmo charges the 3% fee because credit card companies charge Venmo a processing fee every time someone uses a credit card. Venmo passes that cost to you instead of absorbing it. Debit cards and bank accounts have lower processing costs, so Venmo doesn't charge you to use them.
If you want to move money between friends without any fee, link your bank account or debit card to Venmo. If you don't have a bank account, consider opening one—most banks offer free checking accounts with no minimum balance. If you need to send money urgently and don't have time to link a bank account, the 3% fee is the price of that speed.
What happens if you don't have enough credit available
Venmo will decline the transaction if your credit card doesn't have enough available credit for the amount you're trying to send. This is different from a debit card, which draws from money you already have in your account. If your card is declined, you'll see an error message on the app. Contact your credit card company to ask why the transaction was blocked—sometimes they decline Venmo transfers as a fraud prevention measure, and you may need to call and authorize the payment.
If your card is frequently declined, switch to a debit card or bank account. Those methods have fewer fraud blocks and no fees.
Frequently Asked Questions
Does Venmo charge a fee if I receive money on a credit card?
No. Venmo only charges the 3% fee when you send money using a credit card. Receiving money is always free, regardless of which payment method the sender used. The recipient doesn't pay anything.
Can I use a prepaid credit card on Venmo?
Yes, most prepaid cards work on Venmo and are subject to the same 3% fee. Some prepaid cards may be declined if they don't support online transactions or if the card issuer blocks Venmo transfers. Check with your prepaid card provider if you're unsure.
What if I send money by mistake and want to get the fee back?
Venmo does not refund the 3% fee. If you sent money to the wrong person, you can request the payment back through the app, but the fee is non-refundable. This is why it's important to double-check the recipient and amount before you confirm.
Is it safer to use a credit card or debit card on Venmo?
Both are reasonably safe on Venmo. Credit cards offer more fraud protection by law—you're liable for at most $50 of unauthorized charges. Debit cards offer less protection, though Venmo's own policies cover most fraud. Use whichever you're more comfortable with, keeping in mind the 3% fee applies only to credit cards.