Great Card If
- You use Venmo often
- You want to earn cash-back with no annual fee
- Your purchase patterns fall within 1 or more of the 8 spend categories
Don’t Get If
- You seldom use Venmo
- You want a card that earns transferable or travel rewards
- You prefer a cash-back card that offers a set rewards rate for all purchases
The Ideal Cardholder
It goes without saying the target user of the Venmo card is someone who is already a fan of the Venmo app, uses it often, and is looking to start earning cash-back rewards on their purchases without paying an annual fee.
Further, if you’re someone who spends a relatively large amount each month on 1 or 2 of the 8 total Venmo spending categories, then the Venmo card could be a great fit for you as you’ll earn 3% and 2% back on purchases in your top 2 spend categories.
The Venmo card also comes with 1 solid benefit that those who are always splitting purchases while out with their friends are sure to love.
Unique Purchase Splitting Feature
Tired of chasing down people to cover their half of the tickets you bought or dinner you paid for? Well, the Venmo card aims to solve that by including a QR code on the front that people can quickly scan and pay you through Venmo for their half of the purchase right as you make it, making for a seamless way to quickly split bills.
How To Use Your Cash-Back for Max Value
Add To Your Venmo Balance
The most obvious and straightforward way to redeem the cash-back from your Venmo card is to have that cash-back deposited into your Venmo account. From there you can use it to pay for items, pay your friends, or withdraw into your bank account.
Redeem Towards Your Credit Card Balance
You can also easily redeem your cash-back rewards towards your Venmo card statement balance when it comes due to reduce your overall bill each month. This is a great option for those looking to stay on top of their budget by reducing their cash outlay each month.
Purchase Crypto
If you’re someone who invests in crypto or is interested in doing so, Venmo allows you to redeem your cash-back to purchase crypto on the platform starting at as little as $1. Currently, Venmo allows you to purchase 4 assets on its platform: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
However, you should be mindful that Venmo only allows you to buy or sell crypto on the platform, meaning that any crypto that you purchase cannot be moved off the Venmo platform without first being sold into cash.
Further, users pay a 2.3% transaction fee for crypto purchases under $100, with a minimum fee of $0.50. So this transaction fee would significantly cut into your cash-back rewards if you’re making smaller purchases.
Bottom Line:When it comes to your Venmo cash-back, you’ll likely be best off just deposing the cash into your Venmo account or using it to pay down your cards balance. If you’re interested in investing in crypto, you’d be much better off using another card given the large transaction fees you’ll pay and the fact that your crypto cannot be moved off the platform.
How To Earn More Cash-Back
Maximizing Your First- and Second-Largest Spend Categories
Earning rewards with the Venmo card is a bit unique in that you’ll earn the most cash-back for your purchases based on what you actually spend the most on each month, provided that it falls within one of the 8 preselected spend categories. Those categories are as follows:
- Bills and Utilities — including your phone and internet bill, streaming services, subscriptions, electricity, gas, and more
- Dining and Nightlife — including takeout, bars, and delivery services
- Entertainment — including tickets to movies, concerts, amusem*nt parks, theatres, and more
- Gas — including any service station that sells gas
- Grocery — including wholesale stores like Target and Walmart
- Health and Beauty — including gym memberships, fitness clubs, drugstores, cosmetic stores, and more
- Transportation — including rideshare services, rental cars, buses, trains, parking meters, and garages
- Travel — including flights, hotels, and vacation rentals
So, if at the end of the month you’ve spent the largest amount of money on grocery purchases, followed by monthly bills and utilities, you’ll earn 3% cash-back and 2% cash-back on those purchases, respectively.
But perhaps the best feature about the Venmo card is that what you earn the most cash-back on can change from month to month. So if you have a big vacation planned for the following month and your 2 largest categories become travel and dining, then those will be your 3% and 2% categories for the following month.
So no matter what, you’re always earning the most cash-back where you spend the most money.
All Other Purchases
Of course, all other purchases outside your top 3% and 2% back categories will still earn 1% cash-back. That obviously is not great compared to other cash-cards that offer 1.5% to 2% cash-back on all non-bonused purchases, but it is certainly better than nothing at all.
Alternative Cards to the Venmo Card
Citi Double Cash® Card
Citi Double Cash® Card
U.P. Rating
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.
Great card for the average spender with no specific focus category; worry-free cash-back earning on everything!
(at our partner's secure site)
Citi Double Cash® Card
Great card for the average spender with no specific focus category; worry-free cash-back earning on everything!
Earn $200 cash back after spending $1,500 on purchases in the first 6 months of account opening.
$200 cash back
$0
0% Intro APR for 18 months on balance transfers, then 19.24% - 29.24% Variable
Upgraded Points credit ranges are a variation of FICO®Score 8, one of many types of credit scores lenders may use when considering your credit cardapplication.
Fair to Excellent (580-850)
The Citi Double Cash® Cardhas long been one of the top cash-back credit cards on the market, and the card now has the ability to earn Citi ThankYou Points!
This means that cardholders of the Double Cash card will now earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. Cash back is earned in the form of ThankYou Points. This means each billing cycle, you will earn 1 ThankYou point per $1 spent on purchases and an additional ThankYou point for every $1 paid on your purchase balance as long as there is a corresponding balance in your Purchase Tracker.
Citi has turned the Double Cash card into a top choice for those who are looking for an everyday, no-fuss credit card.
Pros
- Uncapped 2% for every $1 spent (1% when you buy and another 1% when you pay)
- Flexible redemption options
- No annual fee
Cons
- No bonus categories
- 3% foreign transaction fees
Read Full Review
- Bonus Offer: Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
- To earn cash back, pay at least the minimum due on time.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 19.24% – 29.24%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
- Citi Double Cash® Card Travel Portal Limited Time Offer: Earn a total of 5 ThankYou Points per $1 spent on hotel, car rental, and attractions, excluding air travel, when booked through the Citi TravelSM portal on ThankYou.com or by calling 1-800-Thankyou and saying “Travel.” Offer is valid through 11:59 PM Eastern Time (ET) 12/31/2024.
Financial Snapshot
- APR: 0% Intro APR for 18 months on balance transfers, then 19.24% - 29.24% Variable
- Foreign Transaction Fees:3% of the U.S. dollar amount of each purchase
Rewards Center
Citi ThankYou Rewards
Those looking for a cash-back card with no annual fee that offers more flexible rewards should consider the Double Cash card. Not only does the card earn 2% cash-back on all of your purchases, but it also can be paired with a premium Citi ThankYou card, allowing you to then combine points towards huge travel rewards.
SoFi Credit Card
SoFi Credit Card
U.P. Rating
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.
Earn 2% unlimited cash-back when you redeem it to save invest, or pay down an eligible SoFi loan --- all without an annual fee.
(at SoFi's secure site)
SoFi Credit Card
Earn 2% unlimited cash-back when you redeem it to save invest, or pay down an eligible SoFi loan --- all without an annual fee.
$0
13.24% to 25.24% Variable
The information regarding the SoFi Credit Card was independently collected by Upgraded Points and not provided nor reviewed by the issuer.
SoFi has quickly become one of the most popular fintech companies around by offering a combination of investing, saving, and loan refinancing, all in 1 platform.
Now, the company has its very own credit card that rewards you with 2% back on all purchases, helping you get even more out of your SoFi account.
Pros
- 3% cash back for a year when you set up direct deposit with SoFi
- 1% unlimited cash-back when you redeem as a statement credit
- No annual fee
Cons
- Only useful if you already use the SoFi platform
- Does not offer bonus categories for those looking to optimize their spending on certain purchases
Read Full Review
- Earn 3% cash back for a year when you set up direct deposit with SoFi. After that, earn 2% unlimited cash back on purchases when redeemed toward investing, saving, or paying down an eligible loan with SoFi.*
- Earn $100 when you fund an Invest account as well as a Checking and Savings account after getting approved for the SoFi Credit Card.
- When you make 12 on-time payments, we’ll lower your APR by 1%.
- No annual fee.
- No foreign transaction fees
- Cell phone protection (insurance coverage up to $1,000)**
- Mastercard ID Theft Protection™**
- $10 Lyft credit when you take 5 rides per month**
- * See offer details:www.sofi.com/card/rewards
- See terms and conditions:www.sofi.com/card/terms
- ** Cell Phone Insurance Protection, Mastercard ID Theft Protection(TM), Lyft and Other Partner Rewards have additional terms and conditions, which can all be accessed through the World Elite Mastercard® Benefits portal. Please see the guide to benefits for details or call 1-800-MASTERCARD.
Financial Snapshot
- APR: 13.24% to 25.24% Variable
- Foreign Transaction Fees:$0
If you aren’t much of a Venmo user but do use a platform like SoFi, then the SoFi card would be a much better fit for you. The card earns 2% cash-back on all purchases with no annual fee. You can then redeem your cash-back rewards towards your SoFi Money account, SoFi Invest account, or even to pay down your SoFi loan balance.
» Related: The Best Credit Cards That Earn Crypto Rewards [2024]
The information regarding the Venmo Credit Card was independently collected by Upgraded Points and not provided nor reviewed by the issuer.
The information regarding the SoFi Credit Card was independently collected by Upgraded Points and not provided nor reviewed by the issuer.
