4 Helpful Tips for Using Payment Apps

Venmo^®, Zelle^®* and Cash App^®… if you’re on the internet and use money, then you’ve likely seen an advertisement for one or more of these payment apps. If not, then perhaps a family member told you to download one so they could send you money.

Financial apps — and payment apps specifically — seem almost necessary nowadays. You can invest, save, and pay right from your phone. While it’s easy and convenient, it’s also necessary to be fully informed about the payment and financial apps you’re using.

Here are four simple tips to help protect you and your money when using financial or payment apps. 

Payment App Tip #1: Only transfer money to people you know

Payment apps are a common method scammers use to trick you into sending them money. Once your money has been transferred via a payment app, there is no way to get it back into your bank account — unless the person sends it back to you.

Only transfer money to people you know personally. Double check that you have used the correct name if you are transferring to a shop or business and enter the recipient’s phone number for verification.

Payment App Tip #2: Never leave a large balance in your app

It might be convenient to leave the balance in your app — almost like having extra cash in your wallet — but payment and investment apps aren’t wallets and your funds typically aren’t FDIC insured. That means if the payment app company went bankrupt you wouldn’t get your money back.

In addition, any funds in the app aren’t available unless you are making a payment through the app. In addition, having your money in established and secure places — like a bank — means it is protected and usually earning interest.

Payment App Tip #3: Be aware of any fees involved

The majority of payment apps are free to use, but they may have fees when transferring money into your bank account. Venmo, for example, levies a 1.75% fee on “instant transfers.” Even if fees are low, they can add up over time.

Payment App Tip #4: Don’t let an app replace your bank or investment firm

Although financial apps allow for a great deal of convenience, they’re no replacement for going into a branch and talking to a real person, particularly when you are investing for the long term. An experienced local banker can help you out more personally than any automated system.

With these strategies in your toolkit, you can enjoy the great convenience of using payment apps with your friends and family to split the cost of the check or pay back a friend for amazing concert tickets. Send money to and receive money from friends, family, and people you know and trust with Zelle®. To learn more about Zelle®, visit the Zions Bank website or talk to a banker at a Zions Bank branch near you.

*U.S. checking or savings account required to use Zelle.® Transactions between enrolled users typically occur in minutes. See your Zelle® Payment Service Agreement for more details. Standard text and data rates from your mobile phone carrier may apply. Available services are subject to change without notice. Zelle® is intended for sending money to family, friends, and people you know and trust. It is recommended that you do not use Zelle® to send money to people you don't know. Neither Zions Bancorporation, N.A. nor Zelle® offer a protection program for any authorized purchase made with Zelle.®

In order to send payment requests or split payment requests to a U.S. mobile number, the mobile number must already be enrolled in Zelle.®

Zelle and Zelle related marks are wholly owned by Early Warning Services, LLC. and are used herein under license.

Venmo is a registered trademark of PayPal, Inc. Cash App is a registered trademark of Square, Inc.