<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=0qMpFQ_0wCM867900" alt="https://img.particlenews.com/image.php?url=0qMpFQ_0wCM867900" width="1280" height="853" ></figure>CUSTOMERS using payment apps such as Cash App and Venmo have been warned about leaving money sitting in their accounts because a little-known rule means they could lose their funds.In 2022, transaction volume on Cash App and Venmo soared to an estimated $893 billion, according to the Consumer Financial Protection Bureau (CFPB).<nbtemplate data-id="AdPlaceholder" data-content="JTdCJTdE"></nbtemplate><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=0td7eJ_0wCM867900" alt="https://img.particlenews.com/image.php?url=0td7eJ_0wCM867900" width="1240" height="826" ><figcaption>Venmo users have been warned over the lack of protections for their payments Credit: Getty</figcaption></figure>By 2027, that figure is projected to reach $1.6 trillion, with more than three-quarters of US adults saying they have used a payment <a href="https://www.the-sun.com/topic/apps/">app</a>.The apps are popular, particularly with young people, due to the ease of sending <a href="https://www.the-sun.com/topic/money-saving-tips/">money</a>.But the CFPB has warned that payment apps often lack the typical protections you would get from a traditional bank.<nbtemplate data-id="AdPlaceholder" data-content="JTdCJTdE"></nbtemplate>For example, funds stored on Venmo and Cash App usually don't have deposit insurance, except in certain cases.This is particularly an issue in instances of <a href="https://www.the-sun.com/topic/scams-and-fraud/">scams and fraud</a>."Popular digital payment apps are increasingly used as substitutes for a traditional bank or credit union account, but lack the same protections to ensure that funds are safe," CFPB Director Rohit Chopra said last year.They also may not be the most efficient use of your money, in comparison to a high-yield savings account.Connor Tomasko, a freelance software consultant based in Chicago, has revealed her tips for using payment apps safely.She now transfers any payments out of the apps immediately and tells her friends to do the same.<nbtemplate data-id="AdPlaceholder" data-content="JTdCJTdE"></nbtemplate>"I’m definitely the one that is always harping about high-yield savings accounts," she told AP."But if you’re in an industry dealing with a lot of cash — bartending, say — sometimes you’re just worried about finding a place to deposit it."It’s not always a fun thing to talk about."She added, "The apps are popular because you don’t have to give your personal information, like a phone number, if you just got drinks with someone once but you’re never going to see them again — a date that didn’t go well."I get the benefits in that sense — to be able to send money that way."<h2>Bank tips for avoiding scams</h2><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=4JANd1_0wCM867900" alt="https://img.particlenews.com/image.php?url=4JANd1_0wCM867900" width="620" height="413" ></figure><nbtemplate data-id="AdPlaceholder" data-content="JTdCJTdE"></nbtemplate>As scams become more sophisticated with the use of artificial intelligence, it is important you know how to spot a scam: <ul><li>Be skeptical of online deals that seem too good to be true, especially on social media.</li><li>Scammers will often use tactics to make you panicked so you make quick decisions - be cautious if you are told to take immediate action and verify who has contacted you.</li><li>Chase Bank warns customers to "never return any unexpected funds without calling Chase first."</li><li>Never send money to someone you have only spoken to online or by phone as this is likely a romance scam.</li><li>Unless you 100% know who you are talking to, never give someone remote access to your device.</li><li>Never accept help from strangers at an ATM and always be vigilant when making withdrawals.</li><li>Do not send money or click any links indicating that you have won a prize.</li></ul><nbtemplate data-id="AdPlaceholder" data-content="JTdCJTdE"></nbtemplate>Source: <a href="https://www.chase.com/digital/resources/privacy-security/security/how-to-spot-scams#:~:text=Hang%20up%20and%20don't,or%20on%20the%20account%20statement.">Chase.com</a>Experts have also warned customers not to leave money sitting in peer-to-peer lending accounts.Instead, it is wiser to look for high-yield savings accounts."Leaving money sitting in those accounts is leaving potential interest from a high-yield savings account on the table," said Courtney Alev, consumer advocate at Credit Karma."All of that interest adds up over time, so your money could be growing elsewhere."It comes days after <a href="https://www.the-sun.com/money/12669207/venmo-schedule-payments-change/">Venmo announced plans to add a new feature</a> "highly requested" by many customers to its app.The new feature can be used to set up the payments monthly, weekly, or bi-weekly in advance.<a href="https://www.the-sun.com/money/3176101/what-is-venmo/">Venmo</a> revealed that the move follows the company's discovery that 84% of consumers have used a peer-to-peer service with payments like monthly <a href="https://www.the-sun.com/topic/renting/">rent</a>, <a href="https://www.the-sun.com/topic/energy-bills/">utilities</a>, and other common living expenses. <nbtemplate data-id="AdPlaceholder" data-content="JTdCJTdE"></nbtemplate></div></body>

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CUSTOMERS using payment apps such as Cash App and Venmo have been warned about leaving money sitting in their accounts because a little-known rule means they could lose their funds. In 2022, transaction volume on Cash App and Venmo soared to an estimated $893 billion, according to the Consumer Financial...