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Payment apps and the risks you need to know about

Posted at 1:53 PM, Nov 25, 2020
and last updated 2020-11-25 15:53:34-05

Payment apps have made it easier than ever to pay friends, family, and other services without having to carry around extra cash. However, with convenience often times comes risk. Cyprus Credit Union is helping you recognize three risks associated with payment apps and the steps you can take to avoid them.

If you lose a $20 bill, that money is considered a loss. Any money transferred in a payment app, even though it’s coming out of your bank account, should be thought of the same way. Ensure that the username, phone number, and amount are correct before hitting send otherwise, that money is gone for good. Because payment apps are a third party with their own terms and conditions, your financial institution is no longer responsible for the funds once they leave your checking or savings account.

Payment apps are becoming a target for scammers because it’s a great way to get funds quickly. Never send money unless you are 100% sure of where the money is going. Be aware that apps like Venmo don’t provide protection for buyers/sellers and are intended for personal transactions. For business needs, look to resources such as PayPal.

If you don’t update your apps regularly, you are leaving yourself vulnerable to security compromises. Updates are made by the developers as they encounter new risks and challenges so when they become available, especially if your finances are involved, you should download them regularly.

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