JACKSONVILLE, Fla. – Not many of us carry a lot of cash anymore, instead, peer-to-peer payment apps like Venmo, PayPal, and Zelle give the convenience of cash on your phone.
Consumer Reports warns you have to take one very important step to protect yourself in case something goes wrong – like getting scammed.
“Once you’ve sent it, you’ve spent it,” said Consumer Reports Money Editor Octavio Blanco.
He says that’s exactly what many electronic payment apps tell users. Yes, they’re speedy and convenient, but Consumer Reports warns their lack of user protections – like those offered with most credit cards – can make these services very attractive to fraudsters and risky for consumers.
“The main risk in using a P2P app is that you have no recourse in getting your money back if you send money to a scammer or to the wrong person or if you send the wrong amount because of a typo,” Blanco explained.
Last year alone, the Federal Trade Commission says there were more than 70,000 reports of fraud and $130 million in losses with mobile payment apps.
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And the apps are under fire from consumer advocates demanding protection from fraud and errors for users, but until that happens, Consumer Reports says there is one way to protect your payments using P2P apps.
“Link your credit card to the app and fund your payments through the credit card,” said Blanco.
When you link your app, you could benefit from the same purchase…
