P2P Payments

P2P, or peer-to-peer payment apps, are mobile applications for your smartphone that allow you to connect your debit card, checking account, or even your credit card, and then use that info to digitally transfer money from your account to one of your contacts.

If you have a PIN setup, which will depend on the app you are using, you’ll input the PIN at some point during the process for safety. The most common and widely used P2P apps are Venmo, PayPal and Cash App. P2P apps are available on Android and iPhone, which allows quick and easy exchange of money directly between individuals and FFCCU.

Most P2P services work with just about any financial institution. Venmo, Cash App and Paypal are all compatible with your FFCCU accounts. Many of our members choose to join the one that friends and family are already using.

• Download the Cash App app for iOS or Android and open the app on your device.
• Click sign-in and enter your email or phone number.
• Follow the instructions to verify your email or phone number. You will either receive a confirmation email or a text message with a code to confirm your registration.
• Add your bank. To do so, you will need to enter your name and debit card number.
• Choose a $Cashtag, which is your unique user name for Cash App and it can also be used to get paid by someone. A $Cashtag must include at least one letter and a maximum of 20 characters.

• Download the mobile apps: iOS & Android
• Open the Venmo app
• Choose your sign up method and create a secure password (between 8 and 32 characters long).
• Verify your phone number and email address. As soon as you sign up, a verification code will be sent to your phone number via text message.
• Enter the verification code from the text message when prompted in the Venmo app/website to verify your phone number.
• Add and verify your bank account. Venmo offers both and instant and manual verification. Take the time to verify your bank account before you transfer funds to avoid any complications.

Fees associated with P2P are typically optional and are based on the type of payment you’d like to connect or how fast you’d like to receive funds.

Venmo waives their standard 3% fee for sending money when the transaction is funded with a Venmo balance, a bank balance or a debit card. The 3% fee is NOT waived when users send money from a credit card. Instantaneous transfers, which allow you to see funds within 30 minutes, incur a 1% fee (with a minimum of 25 cents and a max of $10). If you don’t need access to the funds immediately, you can do the standard bank transfer for no fee and it will be completed in 1-3 business days.

Similarly, Cash App charges a 3 % fee if you use a credit card to send money, but making payments with a debit card or bank account is free. Cash App also charges a 1.5 percent fee if you request an instant transfer of funds to your linked debit card. If you request to transfer money to a bank account, the transfer is free — however, you must wait 1-3 business days for the transaction to process.

While all major P2P systems encrypt your financial information, they are not immune to hacking or scams. Venmo uses data encryption technology to protect users against unauthorized transactions while storing user information on servers in secure locations. Venmo also give users the option of setting up PIN codes for mobile applications.

However, there is no protection if you choose to send a payment through Venmo for a good or service. So it’s best not to make transactions with strangers through Venmo. It’s also a good idea not to leave much, if any balance in P2P apps. Funds that remain in an app and become compromised are not insured, so if your account is hacked, you have no way to recover that money.

You can also set up two-factor authentication to protect your account further. Additionally, a PIN that must be entered before the app can be opened is a great idea. These protections help you in case someone else gets their hands on your phone.

Safety tips when using Venmo, Cash App or other P2P applications:

• Set up a PIN or Touch ID.
• Change your account setting to “private.”
• Turn on notifications for every transaction
• Only use P2P services with people you know and trust
• Don’t store large balances in your P2P apps