Did you know that the majority of PERSON to PERSON (P2P) cash applications offer zero fraud protection? These are apps such as Venmo, Cash App, etc.
At Connex, we have noticed an increase in incidences where credit union members have been taken advantage of that involve P2P applications . If you haven’t read the fine print of the user agreement on your phone screen before hitting “I agree” (much less having it translated by a lawyer), you may not be aware that any fraud claims tied to P2P applications are instantly rejected by payment card providers (VISA, MC, AMEX, etc…) and you will suffer a loss.
These apps should only be used to safely pay someone you KNOW; face to face for money owed for goods or services or gifts. Using them for purchasing a puppy two states away from a complete stranger does NOT offer any protections from fraud the way using our Connex VISA cards will, even if the VISA card is linked to the application.
When P2P providers say, ‘Same as cash.’ – they really mean it. Think of it like this: If you hand a stranger $200 in $20 bills and that payee vanishes, there isn’t much the bank can do to get it back unfortunately.
For more information, check out this article on how to protect yourself when using these apps: https://www.consumer.ftc.gov/blog/2018/02/tips-using-peer-peer-payment-systems-and-apps