Which payment apps are the safest? The former bank employee gives his opinion

A former bank worker has gone viral on social media for sharing his honest opinions on popular transaction apps.

Former cashier and finance major Sydney Bean (@sydneykidneybean) has revealed whether or not he uses Venmo, Cash App, PayPal or Zelle in a now-viral TikTok with over 1 million views and over 2 300 comments. You can watch the full video here.

About the bean

bean says Newsweek that they once worked as a senior cashier at “one of the largest banks in the United States.” They then worked for the company as a banker during the height of the pandemic before moving into a credit repair business. Now they are studying finance at the University of Idaho.

“The information in my transaction app video is primarily my opinion. I formed these opinions after watching customers get scammed every day for years,” Bean said. “Furthermore, I [am] a major in finance, so I know the importance of the FDIC [Federal Deposit Insurance Corporation] coverage and the full extent of Regulation E when it comes to covering unauthorized transactions. »

Sydney Bean (@sydneykidneybean) revealed whether or not they used Venmo, Cash App, PayPal or Zelle in a now-viral TikTok with over 1 million views and over 2,300 comments.
Tero Vesalainen/istock

According to the Federal Reserve’s website, Regulation E “provides a basic framework that establishes the rights, responsibilities, and liabilities of participants in electronic funds transfer systems.”

Which transaction apps are safe?

Bean created his TikTok in response to a commenter on a previous video, who asked, “Which transaction apps are safe?”

Bean answered the question by sharing which trading apps they use and don’t use and why. Here’s what they had to say:

Venmo

Bean said they use Venmo but won’t keep money in the app because it’s not FDIC insured.

“Also, I connect [the app] directly to my debit card so that if it’s somehow accessed fraudulently, I only have to replace my debit card and not my entire bank account.”

cash app

Bean told viewers that for various reasons they don’t use Cash App.

“I’ve filed far too many claims on Cash App, I’ve seen far too many scams directed at Cash App users, and I’ve also seen people who kept their money in Cash App and then totally seized or frozen,” they said.

Despite these issues, Bean said the Cash App card, or payment cardis insured by the FDIC.

PayPal

Bean uses PayPal, but only for international transactions.

“Because it’s accepted worldwide, it’s quite common in other countries, and it’s a lot cheaper to do a PayPal transaction than to do an international transaction through your bank.”

It should be noted that PayPal, like Venmo, is not FDIC insured.

Zelle

Bean didn’t say whether or not they use Zelle, but they advised against sending transactions to strangers through the app.

“Never send a Zelle to someone you don’t know,” they said. “You won’t see that money again, it’s gone.

Banks don’t care if you got scammed by Zelle…they will only refund your money on a claim if the bank made a mistake [and] it’s provable,” Bean continued, adding that scammers “love Zelle.”

More expert advice

So, are any of these apps really safe? James E. Lee, COO of the Identity Theft Resource Center, said Newsweek that all instant payment apps are “well-known avenues for scams”. However, they are “generally safe” to use as long as people exercise caution.

“Instant payment apps are generally safe to use and offer a convenient way to transfer funds IF a person exercises caution and thoroughly investigates any merchant or individual they do not personally know and do not don’t trust,” Lee said. “Limiting the use of instant payment apps to businesses and people you know and trust is the best way to avoid falling victim to payment fraud.”

Lee also advised users to turn off social media features that allow others to see what they are spending.

“Some payment apps have a social media feature that lets people see what you’re spending, on what, and with whom. Disable this feature to keep your transactions private. This will help ensure criminals can’t target you. for a transaction-based phishing attack,” Lee advised.

Bean also reminds people to read the fine print.

“Always read your disclosures and agreements!” they said Newsweek. “Transaction apps and banks openly inform you about the protections and limits of your transactions. Also, call your bank whenever you have a question or a problem. The majority of bankers are friendly and informative, and most importantly, they [are there] to help you protect your money.”

Other Viral Posts

Zelle in fashion Twitter last month after a rapper claimed he accidentally sent money to the wrong recipient and was denied a refund.

In May, Redditors defended a college-aged woman who expected to be Venmo’d immediately after paying the bill for a friend’s expensive birthday dinner.

And in February, a Florida woman said she lost thousands of dollars in a Venmo crime.

Do you have a similar monetary question? Let us know via [email protected] We can seek advice from experts and your story could be published on Newsweek.


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Elaine R. Knight