Why NOT to store money on Cash App, Venmo

A federal consumer watchdog warned consumers not to store money on payment apps such as Venmo, Cash App or PayPal, because that money is not automatically insured by the government and could be completely lost if the companies fail. In its advisory, the CFPB recommended that users move money off their payment apps and into their bank accounts. #shorts #venmo #cashapp #paypal

[trashyalice]

Also to note, if PayPal thinks you broke their tos (you might not have, sometimes just suspected of it) they can lock your account with the money still in it

[stygianrooster]

The only difference between those companies and the banks is fdic protection. If banks go down the fdic will cover up to $250, 000. But if they just decide not to, poof money gone

[aundorl]

The issue isn't PayPal closing. Its them deciding you think wrong, so they close your account on you.

[ninja]

That nice friend that always got your back, Cherish him

[larsiparsii]

The Norwegian app Vipps integrates into the banking system so people basically transfer from one account into another.

[ProtectFreedomOfSpeech]

Also, all of these apps and PayPal specifically often claim your account was in some sort of fishy dodgy criminal activity or they have "reasons to believe so" and can FREEZE your money and claim it as their own. They so that quite often so I would only ever recommend using those apps if you absolutely have to.

[moonstoned]

Translation: "Banks are missing out on profits because youre not storing your money in their system where they can play with it and use it however they want, these 3rd party apps are taking what the bank believes is their share of your money. The banks use claims of government insurance to seem more legitimate but don't mention the government's history of backing out of responsibility or finding loopholes to pay as little as possible."

[kate_]

non Americans in the comments lemme clarify. the app doesn't like take your money against your will. You have to put it on there on purpose. Otherwise it just takes it from your card this video is telling people not to keep money on there. And PayPal isn’t our only banking app. It’s just one of them. Also we can do bank to bank transfers in the US as well it’s just not as common idk why.

[huskycruxes]

As long as the app/institution you're using is FDIC insured your money is safe. And just in case y'all didn't know the vast majority of payment apps like cashapp, venmo, paypal, and zelle are FDIC insured.

Instead of a stupid PSA that's not even accurate you should've just said make sure its FDIC insured.

[mikegeorge]

how is the US so far behind with banking? in australia we dont even have venmo etc. because we can juat transfer through our banks apps to any other australian bank, can even just use a phone number to identify who to send it to

[markanthony]

Meh at most I’ll have about $150 to $300 in my Cash App. It’s convenient for my work traveling which is constant so all in all I’m good

[KuribPlays]

As a Canadian I'm glad there is an unison transfer method to transfer money from one acc to another directly and instant(no need for same bank). I was surprised that not all US bank have an options to do that, and required a 3rd party app for it. Honestly sound unsafe too.

[Passionate_Potato]

Meh, I'll gamble my $100 on the app.

[rylangrimes]

Not me transferring all my money out RIGHT NOW 😂

[astraxyz]

The purpose of this video is kinda stupid as banks can literally push new agreements that restrict access to your bank accounts, and you aren’t guaranteed as much freedom storing in PayPal

[FelinyProctor]

The possibility of that happening is near impossible, their services are wanted and used everyday, and are supported globally

[AlbornozVEVO]

a lot of people in the US don't make enough to afford a bank account

[Rizhiy]

Also, they can close your account seemingly without reason and keep the money. Happened to me and one of my friends with PayPal.
You can sue them for that, but it is usually not practical for small amounts (<10k).

[helloword]

India with UPI laughing corner

Tbh UPI is one of the best things india had made in this decade

[mlaygo]

Why don't they just split the transaction and pay with their own cards? I've seen groups of like 30 people each pay individually, so it should be no problem for just a bunch of friends.