Best Practices for Using Payment Apps

1/10/2020

Payment apps can come in handy when you need to pay a friend for half of lunch, send a monetary gift to your sister, or the like. But you need to protect yourself from fraud or losing money.

There are plenty of payment apps out there (Venmo, Zelle, Google Pay, Apple Pay, etc.), but not all fit your needs or have a good track record. Do your homework first.

Check reviews before you pick a payment app

Use a search engine to research the name of different apps and search for “reviews” (like “Venmo reviews”) to read about others’ experiences before you decide which to use. If a lot of people report problems with losing money, scams, or bad customer service, beware.

An app that has different levels of security is a plus, says Andrea Moore, account services manager with Town and Country Bank. “We have Google pay and Apple pay here at the bank and I’ve noticed Apple pay is one of the most secure ways of transmitting money because it has multiple levels of security and good customer service. Beware of apps that say they’re faster or better, that doesn’t necessarily mean they’re more secure.”

Download the app from the source

“Don’t get the app by clicking on a link in an email you’ve received,” says Moore. “You don’t know if that link is legitimate or it’s a scammer trying to get your information.” Go to the app store and download the app there.

Don’t give passwords or usernames

Most payment apps will ask for your debit card information so they can access your money. If the app, or anyone, asks you for passwords or usernames, “you can pretty much guarantee that’s a scam,” Moore says.

Check your accounts

Make sure there are no withdrawals or deposits from the app that you didn’t authorize.

Only send money to people you know

Don’t fall victim to scams where people you don’t know ask for money, such as a letter claiming you’ve won a lottery but have to pay a fee to get your award. Once you send the money, it’s gone.

Consider using Town and Country Bank and People Prosperity Bank’s payment portal

With Person-to-Person (P2P) payments, you can send money for free to others, even if they don’t use Town and Country Bank or Peoples Prosperity Bank for a bank account. It typically takes two to three days for the person to get the money and you have to be enrolled in the Bank’s online banking to use this service.