In today’s time, there are just so many transaction apps out there that it’s difficult to decide which to use. So, recently a former bank employee talked about the apps she uses and the ones she doesn’t. She also told about an app which you should never use if you want to keep your money safe.
She starts the video by saying, “Venmo. I do use Venmo, but I never keep money in there because it is not insured by the FDIC.”
This is going to be an important term because if you do not use a platform that is insured by the FDIC, your money is at risk.
She then says, “Also, I connected directly to my debit card so that if it is fraudulently accessed somehow, I only have to replace my debit card and not my entire bank account that’s linked to it.”
So, anytime she is conducting a transaction on Venmo, it’s drafted directly from her debit card. In other words, that means if she ever wants to dispute a transaction, she can do it with Venmo as well as with her bank.
After Venmo, she talks about the Cash app and says, “That I do not use. I have filed way too many claims on the cash app, I’ve seen way too many scams directed towards cash app users, and I’ve also seen people who kept their money in the cash app and then had it totally seized or frozen, like constantly and they just never see it back.”
But she does mention that unlike Venmo the cash app card is insured by the FDIC, which is at least a good thing,
Now, coming to probably the most popular platform on the list which is Paypal.
She says, “I do use PayPal, but only for international transactions because it’s globally accepted, it’s pretty common in other countries, and it’s far cheaper to do a PayPal transaction than to do an international transaction through your bank.”
She also praised the invoice feature on the app, where you can make a design and people can directly pay for it. But again, Paypal is not insured by the FDIC.
Now, coming to the only app that is always a no-no from her side. It is ‘Zell’. She says, “Do not ever send a Zell to someone you don’t know. You are not going to see that money back. It’s gone, OK? The banks don’t care if you got scammed through Zell.”
The only way you get your money back if you use Zell is if the bank makes an error from their end. So, scammers also prefer taking payments from Zell. So, you should never use this app if you want to keep your money safe