Using payment apps is becoming an integral part of life. Whether you are using these apps to reimburse a friend or family member or paying a small business owner for their products or services, this is a convenient way to make a payment quickly. Plus, you don’t have to worry about having money with you.
But it is essential to make sure that you are careful and use common sense when using these apps. Otherwise, you could fall victim to scams or put your finances at risk. These tips will help protect you when using payment apps.
One Email a Day Could Save You Thousands
Expert tips and tricks delivered straight to your inbox that could help save you thousands of dollars. Register now for free access to our Personal Finance Boot Camp.
By submitting your email address, you consent to our sending you money advice as well as products and services which we believe may be of interest to you. You can unsubscribe anytime. Please read our privacy statement and terms and conditions.
1. Only use well-known payment applications
If you try to use a payment app that is brand new or that is not commonly used or recognized, you may lose your money. If you’re not sure which apps are the most popular, check out our list of the best payment apps. There are several popular and trusted app options, including:
2. Only send money to people you know and trust.
If you’re using a payment app to send money, make sure it’s someone you know and trust. You don’t want to send money to a stranger and not receive the service or products. Many scammers will ask for payment in advance and will not keep their word.
Keep using payment apps for people you know. If you’re going to transact with someone you’ve never met, you might want to stick with traditional payment methods like a check or money order.
3. Protect your accounts
When using payment apps, you want to make sure you’re protecting your accounts. You can do this by creating and using strong passwords. If you use the same password that you use for all other apps or use a guessable password, it may be easier for someone to hack into your account. Choosing a strong password can protect your personal information and your money.
Strong passwords use a mixture of upper and lower case letters and special characters and numbers. Payment apps also let you enable PIN and Touch ID settings in apps. It can help give your account an extra layer of security.
4. Check all payment details
Before sending money to someone, take a few seconds to verify all of the payment details. Verify the email address, phone number or username and the amount you are sending. This way you don’t make costly mistakes and waste the money you sent.
Many payment apps don’t let you cancel a payment after you’ve sent it. This is unless the recipient returns the money to you. This means that if you send money to a stranger by accident and they don’t want to offer you a refund, you will be in dire financial straits. Checking all payment details will help you avoid this mistake.
5. Be aware of fraudulent phishing links
When making payments through apps, always go to the app itself to make the payment. Don’t fall for payment app links sent by email or text.
There are crooks who will send messages asking for payment while including a phishing link. The link might seem normal, but when you enter your personal and financial information, they steal your information and gain access to your account or financial information. You can avoid these scams by never clicking on links, especially those from people you don’t know.
6. Regularly review your financial statements
It’s a good financial habit to regularly review your bank and credit card statements. Whether or not you use payment apps, this is a smart way to check your finances and make sure no unauthorized charges have occurred. Many people never look closely at their statements, resulting in the absence of red flags such as unrecognized payments and withdrawals.
Many payment apps have security and privacy features. But it’s never a bad idea to be extra careful to protect yourself and your money. For more tips to help you manage your money better, check out these personal finance resources.