All articles tagged with #payment apps
Venmo, a popular payment app, has blurred the line between social media and personal finance, potentially exposing users' transactions without their knowledge. To enhance privacy, users should adjust their settings to make all payments private, hide past transactions, hide their friends list, disable location sharing, and limit the contacts imported into the app.
The Better Business Bureau warns that payment apps like Venmo, Zelle, and Cash App are leaving users vulnerable to fraud, with criminals exploiting the accessibility of these apps to steal money. Users are advised to be cautious about who they pay and the amount of the transaction, to use strong passwords on their phones, and to watch out for red flags such as requests for quick debt payments or assistance through payment apps, which are likely scams.
Payment fraud incidents have surged, leading to consumer skepticism towards payment apps aggregating and connecting payment information. Concerns about data breaches and vulnerability to fraud are widespread, with 45% of consumers fearing data breaches and 34% feeling more vulnerable to fraud. Financial institutions are witnessing an increase in fraud cases and losses, prompting them to enhance preventive measures using artificial intelligence and machine learning. The adoption of AI solutions has led to a decline in overall fraud rates, highlighting the effectiveness of this technology in preventing fraud.
The IRS has announced a delay in implementing new reporting requirements for users of payment apps such as Venmo and Cash App. Originally, users who made $600 or more selling goods and services would have had to report those transactions to the IRS, but now separate tax forms will be sent for taxpayers who receive over $20,000 and make over 200 transactions. The basic reporting threshold will be increased to $5,000 in 2024. The delay is due to taxpayer confusion and the need for additional time to effectively implement the new requirements. Lawmakers from both parties have celebrated the delay and called for a reevaluation of the provision in the American Rescue Plan.
The Consumer Financial Protection Bureau (CFPB) has proposed a new rule to supervise larger nonbank companies, including Big Tech firms, that offer digital wallets and payment apps. The rule aims to ensure that these companies, handling more than 5 million transactions per year, adhere to the same rules as banks and credit unions. The CFPB's oversight would help protect consumers by ensuring compliance with consumer protection laws and promoting fair competition in the marketplace. This proposed rule is part of the CFPB's efforts to monitor the entry of Big Tech into consumer financial markets and address potential risks.
The Consumer Financial Protection Bureau (CFPB) has warned Americans against keeping their money in payment apps like Venmo, PayPal, and CashApp, as they may not provide federal deposit insurance through the Federal Deposit Insurance Corporation or the National Credit Union Administration. If one of these payment apps failed or went bankrupt, consumers could risk losing their money. The CFPB advises consumers to move any money held in a payment app to a federally-insured account to avoid risking their money. The CFPB also noted that 3 in 4 Americans use a payment app, and these companies often invest in the funds that are kept on their apps, allowing them to make money off of their users.
The Consumer Financial Protection Bureau has warned Americans against storing large amounts of money in payment apps like Venmo, PayPal, and Cash App as they are not federally regulated banks and deposits held in them may not be federally insured. The lack of federal regulation and oversight on the apps comparable to what banks have to face is concerning, given the massive amounts of money passing through the apps. The CFPB also found that user agreements for the payment apps often contain little to no information about whether a user's money can be insured in a given app, or whether their money may be used for other investments or purposes within the company while it is held in the app.
The Consumer Financial Protection Bureau has warned Americans against keeping large amounts of money in payment apps like Venmo, PayPal, and Cash App as they are not federally regulated banks and deposits held in them may not be federally insured. The lack of federal regulation and oversight on the apps is concerning given the massive amounts of money passing through them. The CFPB also found that user agreements for the payment apps often contain little to no information about whether a user's money can be insured in a given app.
The Consumer Financial Protection Bureau (CFPB) has warned consumers not to store money on payment apps such as Venmo, Cash App or PayPal, as the money is not automatically insured by the government and could be completely lost if the companies fail. The CFPB recommended that users move money off their payment apps and into their bank accounts. Payment companies have less oversight than traditional banks in how they store and invest users’ funds, allowing payment companies to possibly invest in risky assets.
The Consumer Financial Protection Bureau (CFPB) has warned that money held in non-bank, peer-to-peer payment apps is not guaranteed for federal deposit insurance protection, making the funds more vulnerable. The watchdog said that 85% of adults aged 18 to 29 in the US who have used PayPal, Cash App, Zelle and other peer-to-peer apps would be in danger of losing their money if it was stored on one of those platforms and the companies failed. The risks to user funds increase as the applications grow in popularity.