You can link a credit card to Venmo, but Venmo charges a 3% fee for credit card transfers

Venmo lets you add a credit card to your account and use it to send money to friends. When you do, Venmo charges you 3% of the amount you transfer. A $100 payment costs $103. This fee exists because credit card companies charge Venmo a processing fee, and Venmo passes that cost to you.

If you link a debit card or bank account instead, Venmo charges nothing. The 3% fee applies only to credit cards. Most people use Venmo's free options—debit card or bank account—unless they want to earn credit card rewards on the transaction, which sometimes makes the 3% fee worth it.

Key Takeaways

  • Credit card transfers on Venmo cost 3% of the amount sent, while debit card and bank account transfers are free.
  • You add a credit card through the Venmo app by going to Settings, then Payment Methods, then tapping the plus sign to add a card.
  • Venmo accepts most major credit cards, but some issuers block transfers to payment apps—contact your card issuer if your card is declined.
  • The 3% fee may be worth paying if your credit card earns cash back or points on all purchases, but do the math first.
  • Venmo transfers from a credit card take one to three business days to reach the recipient's bank account.

How to add a credit card to Venmo

Open the Venmo app and tap the menu icon (three horizontal lines) in the bottom right corner. Select Settings, then Payment Methods. Tap the plus sign to add a new payment method. Choose Card and enter your credit card number, expiration date, and CVV. Venmo will ask for your billing zip code. Tap Add Card when you're done.

Venmo may ask you to verify the card by making a small test charge to your account. Check your credit card statement for a deposit of a few cents and enter that amount back into Venmo to confirm the card works. This step usually takes one to two business days.

Once the card is verified, it appears in your Payment Methods list. You can set it as your default payment method or select it each time you send money.

When your credit card gets declined on Venmo

Some credit card issuers block transfers to payment apps like Venmo as a fraud prevention measure. If your card is declined, call the customer service number on the back of your card and tell them you want to send money through Venmo. Ask them to remove the block on that merchant code. Most issuers can do this in minutes.

A few cards—particularly some business cards or cards from smaller banks—may not work with Venmo at all. If your issuer refuses to unblock Venmo transfers, try a different credit card, or use a debit card or bank account instead.

Venmo also declines cards that have expired, been reported lost, or have insufficient funds available. Check your card's expiration date and make sure you have enough credit available before trying again.

Whether the 3% fee is worth it

The 3% fee makes sense only if your credit card earns rewards that exceed 3%. A card that gives 2% cash back on all purchases does not offset the fee—you gain 2% but lose 3%, for a net cost of 1%. A card that earns 5% cash back on all purchases does offset it—you gain 5% and lose 3%, for a net gain of 2%.

Check your card's rewards rate before deciding. If it earns less than 3% on general purchases, use a debit card or bank account instead. If it earns more than 3%, the credit card may be worth the fee, but only if you were planning to send the money anyway—do not send extra money just to earn rewards.

Keep in mind that some credit cards exclude payment apps from their rewards category. Read your card's terms or call the issuer to confirm that Venmo transfers earn the advertised rate.

How long credit card transfers take

When you send money from a credit card on Venmo, the recipient sees the money in their Venmo balance right away. However, if they want to move it to their bank account, that step takes one to three business days. Venmo calls this the standard transfer time.

Venmo also offers an when ready transfer option that moves money to a linked bank account in minutes, but this feature costs 1% of the amount (with a 25-cent minimum). If you use a credit card and then the recipient uses when ready transfer, you pay 3% and they pay 1%, for a total cost of 4%.

Weekends and holidays can slow transfers. A transfer initiated on Friday evening may not arrive until Tuesday morning.

What happens if you dispute a credit card transfer

If you send money to the wrong person or change your mind, you cannot undo the transfer through your credit card company. Venmo is not a credit card purchase—it is a peer-to-peer payment. Your credit card issuer will not reverse it for you.

Instead, contact the person who received the money and ask them to send it back. If they refuse, you can report the transaction to Venmo through the app. Venmo can reverse transfers in some cases, but only if the recipient has not yet withdrawn the money to their bank account. Once the money leaves Venmo, Venmo cannot recover it.

For this reason, double-check the recipient's name and the amount before you hit send. Venmo shows you a confirmation screen with both pieces of information.

Credit card limits on Venmo

Venmo sets a weekly limit on how much you can send using any payment method. The limit depends on your account age and history. New accounts typically have a $300 weekly limit. Older accounts with a clean history may have limits of $2,000 or higher per week.

Your credit card issuer may also set its own limit on transfers to payment apps. This limit is separate from your Venmo limit. If you hit either limit, you cannot send more money until the weekly period resets or you contact the issuer to raise your limit.

Venmo shows your current limit in the app. Go to Settings, then Payment Methods, and tap on your credit card to see how much you can still send this week.

Frequently Asked Questions

Can I use a prepaid credit card on Venmo?

Most prepaid cards work on Venmo, but some issuers block transfers to payment apps. Try adding the card to Venmo. If it is declined, contact the card issuer and ask them to unblock Venmo transfers. Some prepaid card companies refuse to do this, in which case you will need a different payment method.

Does Venmo report credit card transfers to the IRS?

Venmo reports large transfers to the IRS if they meet certain thresholds, but the threshold is high and most personal transfers between friends do not trigger reporting. If you use Venmo for business payments, keep records in case the IRS asks questions later.

What's the difference between sending money and requesting money on Venmo?

When you send money, you initiate the transfer and the recipient receives it. When you request money, you ask someone to send it to you, and they decide whether to pay. Requests do not charge a fee regardless of payment method. Credit card fees explore only to transfers you send, not to payments you receive.

Can I use a business credit card on Venmo?

Some business credit cards work on Venmo, but many issuers block them because Venmo is designed for personal transfers between friends. Try adding your business card to Venmo. If it is declined, contact your card issuer. They may refuse to unblock it, in which case you will need to use a personal card or a different payment method.