7 Tips for Sending P2P Payments
Follow these guidelines to help protect yourself when sending and receiving money electronically.
It’s no secret that peer-to-peer payments have grown increasingly popular over the last few years. Many of us already use a service such as Venmo® or Apple Pay® — and we are not alone. An estimated 96 million Americans will use peer-to-peer (also known as P2P) payment services in 2019, according to market research company, eMarketer.
P2P payment services allow users to send, receive and request money online or through an app, making transfers quick and convenient. It’s a great way to send money to family, friends and people you know such as your roommate, babysitter or neighbor.
With most users already engaging in these fairly effortless money transfers, following are some tips to consider when sending funds peer-to-peer.
Peer-to-Peer Payment Tip #1: Only send money to people you know
This may seem obvious, but most fraudulent P2P transactions are the result of users sending money to strangers. Be sure to only send money to people you know and trust.
If you don’t know the person you’re sending money to, you should not use P2P. P2P is not designed for business use or the sale or purchase of goods. These types of transactions are potentially high risk and are not protected or insured by most P2P services.
Peer-to-Peer Payment Tip #2: Double check recipient info
P2P payments typically cannot be cancelled, so it’s important to confirm that you’ve entered the correct email address or U.S. mobile number when sending money.
Peer-to-Peer Payment Tip #3: Confirm that money was received
The person that you sent money to should be notified via email or text message once the transfer is complete. It’s a good idea to reach out to them and confirm that funds were received.
Peer-to-Peer Payment Tip #4: Be mindful of fees
With so many P2P services out there to choose from, make sure that you are using a service that makes good financial sense. While many providers don’t charge users for transfers from a checking account, some do charge a fee to use your debit or credit card. Knowing the fee policy can save you in the long run.
Peer-to-Peer Payment Tip #5: Read the privacy policy
The best way to understand how your personal and financial information is being used or shared is by reading the provider’s privacy policy and terms of service. Venmo, for example, makes information about your transactions public to other users by default, unless you adjust your privacy settings.
Peer-to-Peer Payment Tip #6: Monitor your transactions
Your financial information is encrypted when you use a P2P payment service, but security policies and protocols vary by provider. It’s a good idea to monitor your money transfers and keep an eye out for any unauthorized transactions. If your provider offers additional security protections, such as email or text message alerts or a PIN, take advantage of those added features.
Peer-to-Peer Payment Tip #7: Know your limit
All P2P providers have transaction limits or daily spending limits. It’s unlikely that you’ll run into an issue if you’re just paying a friend back for dinner, but it’s good to know. Spending limits don’t necessarily come with fees, but they could affect your ability to make your payment on time.
Venmo® is a registered trademark of Paypal, Inc.
Apple Pay® is a registered trademark of Apple, Inc.