Your Money: Peer-to-peer Payments

The Morning Show

Kathy Sweedler from the U of I extension office joins the Morning Show and in this week’s Your Money she is discussing using peer-to-peer payments wisely.

Who doesn’t like convenience? New tools are always being developed to allow us to do daily tasks quicker and easier. A relatively new financial tool is peer-to-peer payment systems. They’re here to stay but you can take steps to keep your finances secure when you’re these.

Peer to peer payment systems allow you to transfer money to someone else without handing them cash or writing a check. Because most of us aren’t carrying around checkbooks anymore, these systems are very popular. Popular examples include Venmo, PayPay, and Square Cash, but there are others too.

These systems act as a “middle man.” Once money is transferred to your account on one of these systems you can leave it there (and transfer it to someone else later) or transfer it to your bank account.

1) Check your online account settings and enable any security measures that aren’t on by default. For example, consider using multi-factor authentication, using a PIN to use the app, or even fingerprint recognition.

2) Check whether or not the app is able to share information about your transactions on social media. If they are on by default, think about what you want to share and modify the settings.

3) If you’re providing a service or selling something to someone, don’t send the item until you have transferred the money to your bank account and you have confirmation it’s there. This will help avoid scammers.

For more information read the blog post “Tips for using peer to peer payments systems and apps by FTC, https://www.consumer.ftc.gov/blog/2018/02/tips-using-peer-peer-payment-systems-and-apps.

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