You can now use Venmo to pay on Amazon - but if you value credit card rewards, you probably shouldn't

You can now use Venmo to pay on Amazon – but if you value credit card rewards, you probably shouldn’t

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The Amazon Prime logo on an Amazon box.

New payment methods are never a bad thing, but some are worse options than others.

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Venmo is one of the most popular ways to send money electronically. It’s handy for things like paying your landlord rent or paying your friend back for dinner.

In recent years, Venmo has also extended its friendliness to merchants. The most recent addition is Amazon; Venmo is officially an option when checking out your Amazon shopping cart.

It’s nice to see more flexibility in Amazon payment options, but it’s not always a good idea. For example, Amazon lets you pay for your shopping cart with credit card points, but the value you’ll receive is too low to make it a good option for most people.

Chase Amazon Prime Rewards Visa Signature Card

Amazon Prime Rewards Visa Signature Card

Introductory offer

$200 Amazon Gift Card Instantly Upon Approval

Awards

Earn 5% back on Amazon and Whole Foods purchases with an eligible Prime membership. Earn 2% cash back at restaurants, gas stations and pharmacies. Earn 1% back on all other purchases. Earn 10% or more on a rotating selection of Amazon products and categories.

Chase Amazon Prime Rewards Visa Signature Card

Amazon Prime Rewards Visa Signature Card

Introductory offer

$200 Amazon Gift Card Instantly Upon Approval

Awards

Earn 5% back on Amazon and Whole Foods purchases with an eligible Prime membership. Earn 2% cash back at restaurants, gas stations and pharmacies. Earn 1% back on all other purchases. Earn 10% or more on a rotating selection of Amazon products and categories.

Awards

Earn 5% back on Amazon and Whole Foods purchases with an eligible Prime membership. Earn 2% cash back at restaurants, gas stations and pharmacies. Earn 1% back on all other purchases. Earn 10% or more on a rotating selection of Amazon products and categories.

Introductory offer

$200 Amazon Gift Card Instantly Upon Approval

Regular Annual Percentage Rate (APR)

17.24% – 25.24% variable

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Chevron icon It indicates an expandable section or menu, or sometimes previous/next navigation options.

Chevron icon It indicates an expandable section or menu, or sometimes previous/next navigation options.

Likewise, you should (almost) under no circumstances use Venmo to pay with Amazon. Here’s why.

We focus here on the rewards and benefits that come with each card. These cards aren’t worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay off your balance in full each month, make your payments on time, and only spend what you can afford.

Why You Should Give Up Venmo for Amazon Purchases

I can only see one real reason to use Venmo on Amazon: you don’t have a credit card. You pay with a checking account or debit card and want to add a layer of encryption to your purchase. By using Venmo as an intermediary, Amazon will not receive any of your account information such as your debit card or checking account number.

Other than that, paying for Amazon through Venmo isn’t necessarily a good idea. Here’s why: When you pay with your Venmo balance or a checking account, you don’t earn rewards on your purchase. You probably won’t earn any rewards with your debit card either – and even if you do, they’ll be the same rewards as if you had paid directly with Amazon.

If possible, you should always use a rewards credit card for Amazon purchases. Besides the fact that paying with a credit card is generally much safer than paying with a debit card or checking account, you’ll be sure to earn something for your expenses. Here are the best credit cards for Amazon purchases:

Even a low level cash back credit card can earn you a respectable return. For example, the $0 annual fee Citi® Double Cash Card earns 1% when you make a purchase and 1% when you redeem that purchase. It is effectively 2% everywhere. You’d be surprised how quickly that can add up, especially if you’re used to using a bank account or debit card for purchases.

Instead of using your Venmo balance to make purchases on Amazon, you’re better off just transferring that money to your bank account, using a rewards credit card for your Amazon shopping cart, and then using your Venmo balance effectively. to pay your credit card bill.

The one possible The development that could make Venmo an attractive option at Amazon’s checkout is the Venmo debit card. This card allows you to earn money at certain rotating merchants (called Venmo offers). We’ve seen bids as high as 6%. If at some point Amazon is touted as a Venmo deal (far from a certainty), Venmo would become a viable option for Venmo debit cardholders – but again, you’d still earn the same amount as if you had paid directly with Amazon.

How to Pay with Venmo on Amazon

Adding and using your Venmo account as a payment option on Amazon is super easy:

  1. At the time of payment, click on “Select a payment method”
  2. Click “Add Venmo Account”
  3. Follow the instructions to allow Amazon to charge Venmo for future purchases

You can then select Venmo as a one-time purchase or as the default payment method for subsequent Amazon purchases. You can pay with your current Venmo balance, linked bank account, or debit card. To be clear, you cannot pay for Amazon purchases with a credit card through Venmo.

Amazon already lets you pay with a debit card and checking account. So the only real addition here is the ability to pay for your cart with your Venmo balance (the money you’ve received from others).

At the end of the line

Venmo and Amazon have teamed up to allow users to pay for online purchases with a Venmo balance, bank account, or debit card through Venmo.

More payment options are never a bad thing, but using Venmo with Amazon isn’t the smartest choice for maximizing your spending. Instead of shopping with a payment method that won’t earn anything, pay Amazon directly with a rewards credit card.

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