Send Money on Venmo with Credit Card

Can You Send Money on Venmo with Credit Card

May 12, 2022

Venmo is a money transfer company owned by PayPal. The platform is only applicable in the United States, unlike the parent company PayPal which operates worldwide. By the way, PayPal operates in more than 200 nations and is one of the most used money transfer services globally, with millions of active users. Still, its product Venmo has many users who rely on it to send and receive money. But can you send money on Venmo with credit card?

You will know if it is possible to send money using a credit later. Credit cards are payment tools that allow you to borrow funds from your issuer. Banks, credit unions, and some mobile money technologies issue debit cards to eligible applicants. When sending money or making a payment using Venmo, you can use the Venmo balance or get funding from your linked bank account. But what about a credit card? That is what I will try to find out in a short moment.

Venmo operates online, whereby you can manage your account online using your smartphone, computer, or tablet. Therefore, you do not have to line up at a branch to carry out your transactions. That makes it a very convenient platform to use anywhere and anytime. Most banks and credit unions are also beginning to see the sense of transacting online. You can use a mobile app to access your balance or visit the platform’s website to access your account.

How do you open a Venmo account?

Opening a Venmo account is not that difficult if you have a smartphone or other suitable device. You also need to have secure and consistent internet connectivity to execute the account opening activity.

To open your account, you need to download the Venmo app. That is, if you are using a smartphone or tablet. When using your computer, you can visit the Venmo website to get started. You can follow the steps below to open an account when using a smartphone.

  • Download the Venmo app for iOS & Android, depending on the operating system of your device. (Venmo has not developed a Windows app)
  • Open the app
  • Decide on your sign-up method and construct a secure password (should be between 8 and 20 characters long, with at least a number or symbol.
  • Verify your mobile phone number and email
  • Add then verify your bank account.

At that point, your Venmo account will be ready to use as long as you top up with adequate money. By the way, you can add money to Venmo instantly when you receive funds from other users. When signing up, you need to understand that Venmo is only available in the United States and is only compatible with US based bank accounts and mobile phone numbers. The number must be able to receive SMS/text messages from short codes.

How to use Venmo?

Send Money on Venmo with Credit Card

You can use a Venmo account if you have an adequate balance either in your account or linked bank account. They include the following.

i) Buying goods and services

Venmo allows you to buy goods and services online and at physical stores. We have many merchants who accept payments through Venmo, and you do not have to carry cash when buying goods and services. For your understanding, Venmo creators aimed to help students split payments at restaurants, movie theaters, and other places where students spend time together by buying goods and services.

To make a payment to a business, you only need to get their username, then transfer money to their account immediately. You can use the same process you use when sending money to others.

ii) Send money to other Venmo users

You can transfer finances from your Venmo account to that of other users instantly. You need to sign in to your Venmo account, and you are good to go. You can follow the procedure below to complete the process.

  • Log into your Venmo account.
  • Locate the Pay/Request button on your screen.
  • Add as many recipients as you’d like to pay.
  • Enter the amount to send.
  • Add a note.
  • Once you’re ready to pay, tap “Pay.”

The recipient will be able to get their funds as soon as you send them or within a few minutes. Venmo enables a faster transfer of money from one person to the other.

iii) Receive direct deposit

If you know direct deposit as only applicable to banks and credit unions, you have been wrong. Venmo allows you to receive finances via direct deposit. You only need to set up the process, and you are good to go. To set up a direct deposit, you can follow the procedure below.

  • Go to the “You” tab by choosing the single person icon.
  • Hit the Settings tab in the top right and tap “Direct Deposit.”
  • Tap Show Account Number and get your Venmo account details along with the routing number visible on the screen
  • Copy the numbers and utilize them to fill out your employer’s Direct Deposit form

After that, your account will be ready to receive a direct deposit from your employer. In case you are required to provide the name or address of your bank during the Direct Deposit form filling, you can give them the name and address of the partner bank, which is as follows.

The Bancorp Bank
6100 S Old Village Pl
Sioux Falls, SD 57108

iv) Check deposit

You can deposit your check on Venmo and have funds deposited in your account immediately. Checks are written and signed documents that allow you to transfer money from your account to others. They can deposit them in the relevant financial companies to get their money.

You can deposit your check on Venmo in the following manner.

  • Log in to your account using the latest Venmo app.
  • Navigate to the “You” tab by tapping the single person icon
  • Next, tap “Manage Balance.”
  • Hit on “Cash a Check.”
  • Verify your account information if not done so.
  • Enter the check amount
  • Take a picture of the front and back of your signed check using your mobile device
  • Tap “Next.”
  • Select how quickly you need the money

Venmo takes a few seconds to review a check for approval. However, it can take 10-15 minutes and sometimes up to 1.5 hours to verify the check information for approval.

If your check is approved, Venmo will prompt you to write “VOID” across the front of your check and submit another photo showing that it has been voided. You should not write “VOID” on the check unless prompted, usually after the check approval.

v) Withdraw money from your bank account

You can transfer money from Venmo to a bank account when needed. We all understand that sometimes you require money in your bank account to settle issues that you cannot accomplish with platforms such as Venmo. You need to follow a simple procedure, and you are good to go.

To transfer money to your bank account, follow the process below.

  • Log into your account.
  • Navigate to the “You” tab by tapping the single person icon.
  • After that, tap the “Add or Transfer” tab under your profile photo. 
  • Enter or edit the amount of money to transfer to your bank
  • Select “Instant” (for a small fee) or “1-3 Biz Days” (free)
  • Select your favorite bank account or debit card
  • Confirm the transfer details, and hit the green “Transfer” button

You have seen that Venmo charges for the instant transfer. But how much does Venmo charge for instant transfer? Usually, it is not that much as only a fraction of the transaction you have to part with. You only need to pay a fee of 1.5% (with a minimum of $0.25 and a maximum of $15). The good thing with the instant transfer is that you can use it to transfer funds needed for emergency issues.

Can you send money on Venmo with credit card?

You can utilize a credit card to fund your Venmo transaction activities. The platform supports American Express, Visa, Discover, and MasterCard payment cards. However, utilizing a credit card to fund your transactions on Venmo has its disadvantages. You must part with 3% of the total transaction amount. That means you will spend a lot of money in the process.

Furthermore, your card issuer may charge you more fees for cash advances. That shows that a credit card is not the best to fund your transfers. However, you will need to pay nothing when you use debit cards from American Express, Visa, Discover, and MasterCard.

You must add your card to your Venmo account, just as you can do with your bank account to use it for your transfers. Above all, using a bank account to fund your transfers is the best option. Remember that to transfer money from a bank account to Venmo, you should add the bank to your Venmo account.

Bottom line

Venmo is a money transfer company that allows you to send and receive finances from friends and relatives. In short, it is a peer-to-peer money transfer service. The service is a product of PayPal, although it only operates within the US, unlike PayPal, which operates globally.

Apart from sending and receiving finances, you can buy goods and services, withdraw money to a bank account, cash out a check, and receive direct deposits using Venmo.

Posted by Spencer Tierney
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Spencer Tierney is a writer and expert on certificates of deposits at transfermone.com. His work has been featured by USA Today, MSN, SF Gate, the Los Angeles Times, NerdWallet and more. He earned a bachelor’s degree in English at UC Berkeley.