RICHMOND, VA (WWBT) - Don’t like to carry cash? It’s easier than ever to open your phone and tip your hair stylist or split a lunch with co-workers.
Venmo and other payment apps are growing in popularity, but there are few tips and tricks you need to know. According to the Wall Street Journal, Venmo was hit by a wave of payment fraud in 2018. There have also been a few posts about Venmo and Paypal hacks over the year.
Michael Joyce, with the Richmond financial firm Agili, says you should never let your money sit and build up in one of these accounts.
“If you pay somebody with Venmo and it goes into a Venmo account until the payee is moving it to their bank account - it’s going to stay there. And that’s where it susceptible to security risks,” says Joyce.
He said that it is important to remember Venmo and Paypal act as a middle men. They hold the money for a payment until you move it over to an account. So move it right away!
He also says apps, like Venmo, have very public feeds where friends can see your transactions and what you are spending money on. It’s a default setting you have to manually change. He says it’s important to make your feed private and not share that information.
It’s easy to get carried away with these apps. Just like with your credit card or debt card spending - you must keep track of it to ensure you’re keeping yourself out of debt.