As digital opportunities grow, there are new ways to quickly purchase or transfer money with just a click on your mobile device. Some apps such as Apple, Samsung, and Google use a tokenization system to process secure transactions without sharing your bank, credit, or debit card information.
However, other payment apps directly use your banking information, debit card, credit card, or their proprietary credit card information. Some of these apps include Paypal, Venmo, Cash App, and Zelle. Some point of sale shops offers alternative payment options where you can use a payment app that has stored your financial information. It is a quick and easy way to pay for your purchases and you have digital receipts from both the app and the retail site for your protection. These payment apps have you set up an account, and you can keep a record of all of your purchases. You can even set up auto-pay for purchases you make more frequently. These apps have security measures in place to keep your personal information safe. When storing these accounts on their apps, we want to make sure you are aware of the risks that go along with the advantages of these sites.
There are so many positive attributes to using digital payment apps. There is, however, always the possibility of fraudulent activity. It could happen from a seller you are paying through your payment app who receives money but never sends you the product. It can also happen from a scammer trying to gain access to your payment app account to make a purchase or transfer money on your behalf. Some payment apps have systems in place to help support you from most fraudulent activity. However, many of our members at Intandem Credit Union have been taken advantage of when making purchases or when sharing their account information.
We want to help you stay safe when using a payment app and any liability problems that may arise.
Here are some tips to keep in mind when creating an account with any payment app:
- Check to see if they are FDIC insured or offer insurance for fraudulent transactions.
- Only do transactions on these payment apps with people you know.
- Never give your password, PIN, Social Security number, debit, or credit card numbers to anyone claiming to be your payment app representative.
- Always report an error, unauthorized activity, or questions about your account immediately to an account representative.
- If the error needs investigation, it could take a while for a representative to investigate the error and issue a refund.
- Read privacy policies; some payment apps have the right to share your account number, personal information, and a description of what you are purchasing or the amount you are transferring with your seller, buyer, or third-party affiliations.
- Most payment apps closely monitor accounts for out-of-the-ordinary activity, but they are not full-proof. Check your accounts often, and report anything that may be suspicious.
- Research fees associated with using the account. Some have fees for using credit cards or with certain deposits.
- There are usually fees that will be incurred when there are insufficient funds in either the payment app account or your personal accounts.
- If the payment app system is not working properly, but you still make a transaction, the payment app may not be liable for lost funds.
- If there are extenuating circumstances that are out of the payment apps system control, they may not be liable for fraudulent or lost funds.
- Some payment apps have third-party affiliations. These affiliations have policies in place to make decisions on whether your account is eligible to do transactions through their app system.
- No financial institution or account holder has the right to stop payment on any payment app transaction. Make sure before you transfer your funds, you are transferring to the correct retailer or personal connection, and the amount is correct.
If you have any questions or concerns about your accounts with Intandem Credit Union, call us at (888) 336-3490 or email email@example.com.