Venmo is a money transfer platform from PayPal. It allows peer-peer money transfer whereby Venmo account holders can send money to one another. Venmo also allows you to split bills at restaurants, movie theatres, and other social places that require payment to receive services. You can add funds to a Venmo account using various ways such using a bank, credit or debit cards. But how do I transfer money from my credit card to Venmo? You will learn about that shortly.
For your information, the creators of Venmo targeted college students who usually do many things together. The app was meant to assist them in making easy payments instead of having only one of them paying, expecting others to refund them. However, nowadays, Venmo is for everybody as some older adults use the service for their daily transactions. Even some businesses are using Venmo to accept payments.
You can open a Venmo account online. You do not have to line up at a branch, as it happens with banks and credit unions. With your smartphone, tablet, or computer plus a secure internet connection, you can visit the Venmo website to start your application. Due to its convenience, you can apply for your account even when on the move. You only need to ensure that you have all the requirements to get started.
How to get started with Venmo
There are no complicated requirements when using Venmo. To get started with Venmo, you must open an account with the service. Before opening a Venmo account, you need to ensure that you have all the requirements.
These include an email address, a phone number, and a bank account or an accepted payment card. After gathering all the needed details, you can then proceed to open your account. The following is the process to open your Venmo account.
- Download the Venmo mobile app for iOS & Android depending on the phone you are using. If you have a windows phone, you need to know that Venmo has not yet created a Windows app.
- Open the Venmo app to get started.
- Choose your most preferred sign-up method.
- Create a secure password (it should be between 8 and 32 characters in length).
- Verify your mobile phone number plus your email address.
- Lastly, add then verify your bank account.
You should know that Venmo is only applicable in the United States. That means you cannot use the service outside the country. Moreover, you can only add a US phone number and a bank account that operates within the United States. You should also make sure that your phone number can receive text messages.
Additionally, you need to note that you can also use your computer to open a Venmo account if you do not have a phone number.
How does Venmo work?
Venmo requires you to create an account online to start using its services. Once you open an account, you should have some balance to start using the payment services. You can avail balance to your Venmo account via a linked bank account, a debit card, or receive money from others.
But can you use a credit card on Venmo? Yes, you can use a credit card as well to add money to your Venmo account. We shall see how you can carry out the process later on. However, using a credit card is not recommended due to the high charges that accompany the services.
With sufficient balance in your account, you can pay bills. As I mentioned earlier, you can split bills with other people in social places such as bars, restaurants, and movie theatres. You can as well pay your monthly bills such as electricity, water and internet service.
Also, you can send money to other Venmo users with a few taps on your device. The issue of writing check is left for fun since you can transfer money instantly to someone else to use them. Apart from transfering money to others, Venmo also allows you to send money to a bank account.
Moreover, you can use your Venmo account to pay for goods and services online and at physical stores. Thousands of businesses are now accepting Venmo, and you can ask to pay with Venmo at the register.
How do I transfer money from my credit card to Venmo?
I have mentioned that you can use a credit card to add a balance to your Venmo account. Let us look at how you can carry out the process.
- Navigate to the “You” tab by tapping the single person icon.
- Hit on the Settings and tap “Payment Methods.”
- Select “Add bank or card…” and then select “Card.”
- Add your credit card information manually or use your phone’s camera.
Once you complete the above process, you will be set to use your credit card to fund your transactions. However, financial experts discourage the usage of credit cards at the highest level possible.
That is because credit cards charge you 3% of the transaction amount, a fee that translates to large amounts of money with time. Remember that using a credit card on Venmo is a way of obtaining cash advances from your credit card issuer. Therefore, you may also need to pay cash advance fees.
You also need to note that, even if you use a credit card to transfer money from a credit card to a debit card or bank, you must part with cash advance fees.
If you have to use a card, you should use a debit card that does not attract fees when you use your balance to fund your Venmo transactions. The same applies to bank accounts. You will never pay any fee to use your bank account on Venmo.
How do I add money to Venmo using a bank account?
If you hold a US bank account, you can add money to your Venmo account in a simple manner. You have to add your bank account to Venmo in the following manner.
- Navigate to the “You” tab by tapping the single person icon.
- Hit on the Settings and tap “Payment Methods.”
- Select “Add bank or card.”
- Select “Bank”
- Select your most preferred verification method.
Once your bank is successfully added, you can then use your bank account balance to fund your transactions on Venmo. The following is the procedure to add money to Venmo from your bank account.
- Enter the amount of money to transfer.
- Tap “Done”
- Confirm the bank account to move money from.
- Tap “Next”
- Review the transfer details and the estimated arrival date.
- Tap “Add Money.”
It is essential to note that once you authorize the transaction, there is no way you can cancel your transfer.
How do I transfer money from a credit card to a bank account?
There are various ways you can transfer money from a credit card to a bank account. They include the following.
i) Transfer money online
A credit card issuer allows you to transfer money online on your card issuer’s website when you log in to your account or use a banking app. You require your bank’s routing and account numbers to carry out the transfer process. Funds may take several days to reflect on the account.
ii) Transfer money at an ATM
You can transfer money from your credit card to a bank account at an ATM point. You need to withdraw money first, then deposit the funds to your account. You have to write a deposit slip indicating the amount to deposit in your account, but the money together with the deposit slip in an envelope and push it through the deposit slot.
iii) Use a check
You can request a check from your card issuer to deposit in your bank account. Even though using a check is becoming outdated, it is still one helpful way to obtain cash from your credit card.
iv) Transfer money over the counter
You can take your credit card to the bank to deposit money and have them withdraw money from the credit card and deposit it in the bank account. You must carry your identification documents to prove that the credit card belongs to you.
You also need to remember that using a credit card to transfer money to a bank account attracts Cash Advance fees. Again, the interest rate is a bit high compared to when you use the card for purchases.
How do I send money to others using Venmo?
Venmo allows you to send money to other Venmo users. You can also request others to send money to your account. When transfering money to others, you can use the following steps to complete the process.
- Open your Venmo app on your device.
- Navigate to the “You” tab by tapping the single person icon.
- Choose a recipient from your Venmo contacts. You can also manually add a recipient.
- Input the amount you want to send.
- Add a note to accompany the payment.
- Confirm the recipient and tap ‘Pay’ button.
- Confirm your payment.
Bottom line
Venmo is a payment platform that allows you to send money to others. The app allows peer-to-peer money transfer of money as well as splitting bills. You can utilize a credit card on Venmo to top up your balance.
However, it is not recommended to use it due to the high fees involved. You can also transfer money from a credit card to a bank account. Venmo also allows adding money from a bank account.
