Paying others through apps like Venmo®, PayPal®, Cash App® and Zelle® is becoming more common, making it easier than ever to split a bill, send a birthday gift or pay a service provider. While these peer-to-peer (P2P) payment apps offer speed and convenience, they also come with risks. Understanding how to use them more safely can help you avoid scams and protect your money.
The Federal Trade Commission (FTC) explains it this way: Mobile payment apps allow you to send and receive money through your smartphone by linking a bank account, debit card or credit card. When someone sends you money, it doesn’t automatically go to your bank — it stays in the app’s balance until you transfer it. Different apps have different features, processing times and fees, so it’s important to understand their policies before using them.
While digital payment apps are convenient, they should be used with caution. The National Council on Aging (NCOA) recommends these smart practices to help stay safe:
Cash apps can help make everyday transactions easier, but they also require careful use. By understanding how they work, verifying recipients and staying alert for scams, you can take advantage of these digital tools while helping avoid putting your finances at risk. These apps are convenient for quick transactions with trusted individuals, but they may not always be the best choice. For purchases from businesses or transactions with unfamiliar individuals, you may want to consider using a credit card, which can provide more fraud protection and often allows for disputed charges if something goes wrong.
If you believe you’ve sent money to a scammer, here is what you can do:
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