If you’re a fan of personal online payment apps, you might be wondering, “does Venmo accept prepaid cards?” They do, and therein lies an interesting story that we’ll cover in this article, along with a discussion of the best prepaid cards to use.
A reloadable prepaid card account is a valuable financial alternative to a credit card and debit or debit card linked to your bank account. Prepaid cards offer a cash alternative for debt-free purchases, interest payments, or the need for a bank account. One thing prepaid cards don’t help with is building your credit score as there is no credit associated with it when you use a prepaid card account.
Venmo competes with other payment apps, including Square Cash, Cash App, Zelle, Apple Pay, and Google Pay.
How Does Venmo Work?
Venmo is a payment platform that allows you to instantly exchange money with other Venmo users. Venmo’s job is to act as an intermediary for the transfer of funds.
But Venmo is more than just a P2P cash payment app – it has a social side. In particular, you can decorate your Venmo register with messages and emojis to give a personal touch to Venmo transactions.
In practice, Venmo is easy to set up and use. You can quickly create an account and then send and receive money from other Venmo account holders.
To its credit, this contactless payment app strives to minimize or eliminate Venmo fees. For example, a basic transfer of money from your Venmo account, prepaid debit card, or bank account costs nothing (although your prepaid card may charge you).
There are no costs for online purchases, account setup, or monthly maintenance. However, there is a flat fee for sending money to people who use credit card payments.
When you fund your payments with a prepaid card, you avoid Venmo fees for adding funds to your account. Transferring money from your account is free, except when you make an instant electronic transfer, in which case a small fee will apply.
In addition, there are no fees for customer service with a live agent, real-time alerts, account statements, or transaction rejections due to insufficient funds.
Does Venmo Accept Prepaid Cards?
So, does Venmo accept prepaid cards or gift cards? The answer is yes, it does!
Venmo users can link bank accounts, debit cards, credit cards, and almost any payment method they want to send money or transact.
There is no exception with a Visa Gift Card or Classic Prepaid Card; you can also add them to Venmo.
Using a bank account, credit, or debit card as your primary payment method is the general rule of thumb, but that doesn’t mean you should limit yourself to them.
Pro Tip: After you add payment methods to your Venmo account, you can buy products with them.
However, you can still pay with your Venmo balance if you receive a direct deposit from someone.
Which Prepaid Cards Does Venmo Accept?
Venmo accepts most prepaid cards as long as they are from Visa, American Express, Mastercard, or Discover and registered in your name.
Fortunately, most prepaid cards are issued by American Express, Discover, Mastercard, or Visa, so you shouldn’t have too much trouble using one of them.
Depending on the card issuer, you will receive some benefits.
Since most card issuers have a prepaid or gift card option, choosing one isn’t easy.
The company makes this qualifying statement:
“Cards may be declined by the card issuer or Venmo due to availability of funds or fraud prevention. Also, some payment cards may require a zip code to be associated with your account.
If you’re having trouble linking a prepaid card to Venmo, there’s probably a good explanation. You can contact a customer service representative at 1 (855) 812-4430 if the problem persists.
Please note that Venmo does not allow you to link your PayPal account or PayPal Cash Card, but does not rule out future availability.
How To Add Prepaid Card to Venmo?
Adding a prepaid card is a piece of cake:
- Open the Venmo Cash app on your device.
- Click the main menu button, represented by three horizontal lines in the top left corner of the screen.
- Select the “Settings” option.
- In “Preferences” click on the menu item “Payment methods”.
- Click on the item “Add bank or card…”.
- A menu will appear: click on the “Map” option.
- Fill in the data fields of your prepaid card or click on the camera icon to take a picture of your card so that the application can automatically fill in the required information. Be sure to enter your zip code.
- Click on “Add”.
That is it! Your new Venmo payment method has been added to your account. Once set up, most transfers take three to five business days to complete.
You may see a dash on your prepaid card statement for a small amount, between $0 and $1, a temporary charge to confirm that your card details are correct. Venmo automatically cancels the charge; You pay nothing for this verification step.
Are there alternatives to using prepaid cards on Venmo?
Venmo supports eligible bank accounts, credit cards, debit cards, ATMs, gift card offers, and prepaid cards. You can send payments to another Venmo user using a linked funding source even if you don’t have any funds in your Venmo account balance.
If you have applied for and obtained a Venmo debit card, you can top up your Venmo balance directly from a verified bank or savings account. The process is:
- Open the Venmo app and click on the “Manage Balance” item.
- Enter the amount to be transferred to your Venmo account and click “Done”.
- Select/confirm a checking or savings account and click “Next” to initiate a bank transfer.
View the summary information, including the estimated arrival date, then click ‘Add money’. The bank transfer will now proceed and you cannot cancel it.
The app also introduces its Cash a Check service to any Venmo user who has confirmed their identity by setting up a Venmo card or arranging a direct bank transfer. By cashing a check, you can deposit a check into your account by entering the amount and taking photos of the front and back of the check.
Venmo can take anywhere from seconds to 1.5 hours to clear your check. You’ll get a notification of approval, then write VOID on the front of your check, take another photo and send it to Venmo.
You have two options for how quickly your check is deposited into your Venmo account:
- Within minutes: Venmo will speed up the deposit, usually in just a few minutes. Against payment.
- Within 10 days: If you are not in a rush, you can avoid the costs by requesting this option and your check will not be returned.
You can deposit checks in amounts from $5 to $5,000 per day and up to $15,000 per month.
You can also sign up for the Venmo credit card, which is a Visa card that can be managed in the Venmo app. According to Venmo, “Venmo credit card allows you to make contactless payments, split your credit card purchases in the Venmo app, request a new virtual card number, earn cashback rewards for your purchases, and more…” The rewards you get Earnings are automatically credited to your Venmo account each month.
However, we do not recommend using a credit card to send money to Venmo as your card issuer will process the transaction as a cash advance. A cash advance entails a higher APR and a cash advance.
Is it safe to use a prepaid card on Venmo?
Venmo, a member of the PayPal family, is committed to security. It uses PayPal’s trusted encryption and verification technology to protect the integrity of your Venmo transactions.
Venmo QR Codes
The app protects against sending money to the wrong person through personal QR codes. Point your phone’s camera at the “Venmo Me” QR code you want to scan – it will automatically transfer to the recipient’s profile page, where you can add them as a friend and request or send money.
You can share your QR code with friends via SMS or email.
You can use a prepaid card to send and receive money on Venmo
Conclusion – Does Venmo Accept Prepaid Cards?
Does venmo accept prepaid cards? As we’ve explained, branded prepaid cards from any of the four major payment networks are welcome on Venmo, although you can’t include the PayPal account Prepaid Visa Debit Card or PayPal Cash Card yet.
The combination of Venmo and prepaid cards are an elegant solution for millennials and others who have chosen not to access banking services. However, it works well if you choose to maintain an account with your bank or credit union.
As with any financial product, you should read and understand all disclosures provided by the prepaid card before signing up.