Think of payments as money, said Jennifer White, JD Power’s senior director of banking and payments intelligence. “You would not give money to someone you do not know, so you should not send money to anyone you are not personally involved with.”
Other suggestions: Use the identity verification options offered by the app, resembling two-factor authentication, said White. They may slow things down a bit, but they’ll show you how to avoid problems.
Check your accounts a minimum of once per week to see if anything looks improper. And if you happen to don’t use the app anymore, remove it out of your phone to maintain it protected from hackers.
While people can leave funds in apps indefinitely and use them as a source of payment, it is sensible to transfer funds to your individual checking account as soon as possible. But consumers could also be reluctant to do it quickly, as some apps may charge for “accelerated” transfers, Gittleman said.
Here are some questions and answers about payment apps:
What should I do if I pay the improper person by mistake?
Apps offer suggestions on their web sites. Venmofor instance, it recommends sending this person a reminder for a similar amount you paid, together with a note requesting a refund of the cash you sent by mistake. This “may show you how to get your a reimbursement faster” than contacting Venmo support, the web site says. If that does not work, the location says contact support – “we’ll do our greatest to assist.”
But the do-it-yourself approach is dependent upon the recipient’s cooperation. Some could also be skeptical as banks also warn mobile app users to be wary of refund requests for erroneous payments as they could be fraudulent. The American Bankers Associationfor instance, it advises users to “never” send a payment to someone who claims to have unintentionally received a payment through certainly one of its payment services. Instead it says contact the payment app for the error.
How can I avoid potential fraud?
Be suspicious of unexpected payment requests, e.g Federal Trade Commission advises, for instance, someone pretending to be a loved one needs quick money for an emergency. Confirm by talking to the person who the request is real and never from the one who hacked their account.