MILLCREEK, Utah – Peer-to-Peer payment apps have exploded in popularity, and Venmo is one of the most popular. KSL Investigators set out to learn how to use Venmo, while avoiding the possible pitfalls while using the app to transfer money. Once upon a time there were three ways to pay – cash, check, or charge. Times have changed. According to a 2017 survey conducted by U.S. Bank, half of the 2,000 respondents confessed that they no longer carry cash when they leave home. That’s not surprising, given that fewer people choose to pay with cash for even minor purchases. The hot new thing is peer-to-peer payment apps, downloaded to smartphones. Apps like Zelle and Apple Pay are two options, but it seems Venmo is the app of choice among friends who go cashless, but still need a simple way to split a dinner tab. Venmo hit the scene almost a decade ago, and a simple Google search for the app’s stats shows it has been used millions and millions of times to transfer hundreds of millions of dollars, often among friends and family.
How Venmo Works
If you’ve never used Venmo, here are the basics:
- Download the app for free
- Enter your bank account or credit card number
- Sync the app to your phone and Facebook contacts
- Select a contact you want to pay
- Enter the amount you want to send and what the money is for
- Tap the pay button
It’s a fast, convenient way to split the cost of dinner, give a friend gas money or share the cost of flowers for mom.There are plenty of people who use it to pay for larger ticket items – like rent, and that’s where the stakes get a little higher.
An ‘Oh Gosh’ Moment
Brittany Zinninger has been a hairstylist for 15 years. KSL caught up with her at Meraki House Salon in Millcreek. She’s a veteran at styling hair, but let’s just say more of a rookie when learning how to use Venmo. “I was like, ‘Oh gosh, what’s that? What social network do I have to be on now?” said Zinninger. She downloaded it to split a food tab, but over time a few customers have asked if they could “Venmo” Zinninger their payment.
‘Venmo-ing’ the Wrong Brittany
“What happened when they ‘Venmo-ed’ the wrong Brittany?” asked KSL Investigative Reporter Debbie Dujanovic. “I was stuck in a position where I went, ‘Well, what if I just ate $200’?” said Zinninger. One time someone accidentally selected the wrong Brittany and hit pay. It was not until much later that Zinninger began to wonder if she had been paid at all. So she asked her and that’s when they both discovered the mistake.
Untangling Mistakes Can Get Tricky
“Basically, she had to reach out to Venmo. Venmo reaches out to the payee and hopefully the payee agrees to give the money back and she was able to pay me,” said Zinninger. All ended well, and the correct Brittany received her money. Since her rookie season using Venmo, Zinninger’s researched and learned quite a bit about best practices for using the app. LESSON LEARNED: Always double check the contact you’ve selected before you tap the pay button.
Venmo’s Response:
A Venmo spokesperson provided these solutions to this problem:
Venmo Codes: We introduced Venmo codes, so you can easily find the Venmo profile of the person you’re trying to pay. You just open the Venmo app, pull up your own code, and let your friends scan it or if you’re trying to pay someone, ask them to open the Venmo app and show you their code so you can scan it. You can also email, text or AirDrop (iOS only) your code to a friend. Automatic Flags: Before completing a payment, Venmo automatically flags a user if we think they might be sending money to the wrong person. We look at information such as if they’re sending money to a person they’ve never paid before and whether they share any friends on Venmo. Profile images: Users have the capability to add profile pictures to accounts, so you can visually verify who the person is. Verify: Always make sure to stop and read who the final payment is going to before tapping the button. The final verification button for sending money actually says the person’s name such as, “Pay John Smith $10.00.”
If you do send money to the wrong person, Venmo says you can:…