JACKSONVILLE, Fla. – You bought something online, and the seller wants you to pay through CashApp. Is that okay? You got a new job, and your new employer sends you a check – for more than your salary. Is it okay to deposit? Your water bill is overdue and the “utility company” demands payment through a pre-paid debit card. Is that a problem? In all three cases, it’s a scam!
Knowing the ins and outs of payment types is one of the best ways to spot a scam. Peer-to-peer (P2P) payment apps, such as Zelle, CashApp, and Venmo, are becoming increasingly popular. But digital wallets aren’t the only way to transfer funds without using a debit or credit card. Checks, prepaid debit cards, and gift cards can all transfer money from one person to another.
How safe are these payment methods? And when should you use or avoid them? BBB offers the following advice to help you understand how each payment method works, make payments safely and avoid falling victim to scams.
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P2P Payment Apps
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Know how P2P payment apps work. P2P payment apps allow users to send money to each other using a mobile app, usually as a smartphone app. To use a P2P payment app, you must first set up an account, after which you can link your bank account directly or a credit or debit card to provide the funds sent to other users. Once your account is set up, you can search for other users with phone numbers, usernames, or emails. Sending money is relatively easy. You simply choose the recipient, select an…