Peer-to-Peer PaymentsPeer-to-peer payments, also known as P2P payments, are transactions that can be used for anything from splitting a $30 dinner bill between friends to paying your rent. These payment services allow the transfer of funds between two parties using their individual financial institution accounts or debit cards through an online or mobile app. Online services and apps that allow you to easily send and receive money are a fast-growing trend. Payment services, like Venmo, Zelle, Apple Pay, Cash App, and Facebook P2P Payments in Messenger, are a virtual imitation of paying or receiving cash. These services make sending funds just as easy as paying with cash. However, you should only use these services when you are paying someone you know. Here are some tips to keep in mind.
Best Used Among Friends and FamilyTo lower the risk of being victimized by fraudsters, only conduct P2P transactions with people you know. Don’t use P2P payments to pay for items you purchase from unknown sellers on the Internet. Most peer-to-peer transactions are instantaneous and irreversible, a fact scammers are known to exploit.
Once you send funds, there is no recourse to get the funds back. If you accidently choose the wrong person in your contact list or enter the wrong number, the transaction cannot be stopped or reversed.