Venmo and its growth
One of the most advanced and growing mediums in the digital world is the Peer-to-peer payment system.
Many giants in the payment system world include Google Wallet, Square Cash, Apple Pay, Zelle, and Venmo. Among these, the largest and fastest-growing payment system app is Venmo.
It has achieved so much success over a shorter period due to its ease of use, its fee structure, and its social networking feature.
Venmo has been so popular that its name has got the status of a “Verb.” However, there are always a few risks associated with any simple and easy application.
1) Transfer Money only to those you know
The most important factor that has to be kept in mind is that the application is designed to transfer money among those you know and trust. The social networking aspect of the app makes sure that your circle comprises the people who are your friends or acquaintances.
Venmo doesn’t offer transfer protections between buyer and seller, unlike banking apps. PayPal does the seller and buyer protection services, but Venmo doesn’t. Scammers and hackers take advantage of such loopholes in the application.
2) Delayed Transactions
There have been so many scams, and cases reported where Venmo users are being scammed online. The buyer purchases something, saying that the payment method will be Venmo.
The item is shipped and received, and the buyer sends a notification through Venmo that the money has been transferred.
But the actual transfer takes place in a couple of days as USA System doesn’t allow money to be transferred instantly. Due to the large, the money reaches a couple of days later, but the apps notify the seller that the money has been transacted.
In actuality, there is no bank account linked to that fake account, or the existing account is stolen or empty, which doesn’t allow the transaction to be completed.
This is one of the issues faced by Venmo users.
So, the crux of the story is that the payment transfer should be done only to those who you know and trust.
3) Accidental Mistaken Transfers
Another issue with Venmo is that sometimes a person accidentally sends/pays the money to the wrong person. Venmo shows the money as completed once it is sent. There is no return or withdrawal transaction method available in the case of Venmo.
If the money is mistakenly or accidentally sent to the other user, then the only way to get the money back is to request the person. Then it’s up to the receiver if they return the money or not.
Venmo clearly states on its website that, currently, there is no method available to cancel the payment once it is transacted. But in cases where the other person doesn’t have a VENMO account, in that case, the payment can be transacted.
4) No Auto-log out available
Venmo doesn’t log the user out of the app itself. Special care is required on smartphones. There should be securities PIN codes and Face/Touch IDs on the smartphone so that the phone is not accessible.
The auto-logout and session expiry features are usually available on banking and transaction apps so that the user’s account is safe. In this case, the user has to put extra security on his own smartphone to keep the account safer.
5) Public Information on Transactions
Another issue with Venmo is that it provides the public information on transactions. One has to limit the privacy settings to private to hide the transaction details. Otherwise, all the transaction details are displayed on the wall, like on social media.
One person pays another person, and for this reason, this type of update is displayed to the whole public who are in the circle.
6) Theft or Stolen Phone
One more issue with Venmo is the theft and stolen phone issue. In case the smartphone gets stolen and someone is able to open the main phone lock, there is a chance he has the access to your account and even your passwords.
The auto-lock feature is quite helpful in such scenarios. Hopefully, Venmo will introduce one in the upcoming days.
Overall, Venmo is great to have, and it will advance throughout the globe. Nothing is better than a simple, easy, and quick money transfer system, but that needs to be practiced with extreme care and caution.