Don’t store cash in Venmo and PayPal, US regulator warns

[Social Media]

Payment apps like PayPal and Venmo might be convenient, but they’re not banks — and a federal financial services watchdog is worried that too many consumers are treating them as such.

Some consumers are using services like PayPal, Venmo, Cash App and Apple Pay for direct deposit of paychecks, or simply storing lots of cash in them. But the Consumer Financial Protection Bureau wants people to know they don’t have the same protections as a bank or credit union.

CFPB Director Rohit Chopra warned in a Thursday statement that payment services like PayPal, Venmo, Cash App and Apple Pay “are increasingly used as substitutes for a traditional bank or credit union account but lack the same protections to ensure that funds are safe.”

[flyingtlger]

Yes, totally true.  Send me all your money and I will safely keep it for you.

 

[Kenny202]

I found that out first hand when I realised Paypal were draining my credit card for a few hundred dollars every couple of days for 2 weeks. Someone had got in and changed the password and locked me out of the account. Try contacting them without logging on! Just robotic / nonsense auto replies. Only by a miracle I found an Australian admin phone number a few days later and the girl there told me it was an "internal issue" and refunded my money immediately. Internal issue I took to mean I was being hacked from someone within Paypal. Did a google search at the time and many similar cases. Disgusting how such a huge company in trust of peoples money can not be contacted. Mind you many banks etc these days arent much better