Over 40 million people are using ‘Venmo’ to pay for items with their smartphone.
Already this year, Venmo payments totaled around $50 billion. According to tech experts, some users are making a huge mistake. Jamey Tucker takes a closer look in today’s ‘What the Tech?’ report.
With so many people using it and so much money changing hands so to speak with Venmo, we expect hackers to be spending a lot of time there and there have been lots of stories of people losing money because someone accessed their phone or their Venmo account.
If you use Venmo, there’s one mistake you can’t afford to make. “If you use a bank or debit card to transfer funds using Venmo and that money goes to someone, if it’s stolen, you really don’t have any recourse.”
Allec Logan is a certified public accountant who runs the financial website money done right.com. He says Venmo users should never link their bank or debit cards and pay the 3% fee it charges to use credit cards. So if something goes wrong the credit card company can help. But if you insist on using your bank account, you should open another one, an account just for Venmo.
It shouldn’t be at the bank account you use now. “In this world of online banking, if someone is able to get into that new secondary account which is linked to your primary account, they could very well get access to your primary account as well, so you generally want that degree of separation.” Venmo is best used to transfer money to friends for small amounts, such as for pizza or to split a cab or Uber ride. It’s risky to give it access to an account with thousands of dollars in it. That’s what the tech I’m Jamey Tucker.