Whether you are splitting a bill, paying someone back, or in a cashless establishment peer-to-peer (P2P) payment apps like Venmo, Zelle, Google Pay, Cash App, and PayPal make it super easy. With these apps, you don’t need to worry about finding an ATM or carrying cash. They’re linked to your bank account and let you send or receive money instantly.
Sounds great, right? Well, mostly! While these apps are fast and convenient, they do come with some risks. Before you hit “Send,” here are some things to keep in mind:
- No Take Back: Send with caution-The transfer is quick, and usually free. But, before you send money, make sure you trust the person. If you send it to the wrong person or get scammed, it’s usually impossible to get your money back. Unlike credit cards, P2P apps don’t have much fraud protection. So, stick to sending money to friends and family you know.
- Double-Check Before You Send-You don’t want to send money to the wrong person by accident. You can even send a small amount first, like $1, just to be sure. And watch out for scams—some people might pretend to be someone you know by changing their username or profile pic. If you’re not sure, ask your friend directly to confirm.
- Watch Out for Sneaky Fees-Most P2P apps let you send and receive money for free, but some services, like instant transfers to your bank, come with fees. These fees might seem small but can add up over time. If you use a credit card with these apps, there’s usually a fee, too. Also, be careful with “buy now, pay later” offers—if you miss a payment, you could end up paying extra fees.
- Keep It Smart and Safe-If your app has a social feed (like Venmo), think before you post! Even private posts can be seen if there’s ever a legal issue. Protect your apps with a password or Face ID so no one can sneak into your account. And remember, these apps aren’t meant to store your money—keep your balance low and use them just for quick transactions.