Analyze peer-to-peer payment terms for fraud liability, instant transfer risks, and why you often can't get scammed money back.
These apps are designed for trusted contacts. Using them with strangers? You're likely on your own if scammed.
Zelle and similar services explicitly state: payments are like cash. Send to a scammer? The money is gone. No chargebacks, no refunds.
Instant transfers cannot be cancelled. Even "pending" payments may be irrevocable. The speed that makes P2P convenient makes fraud permanent.
Platforms can freeze or close accounts for "suspicious activity" with no appeal. Your balance may be held for 180+ days during investigation.
Venmo's social feed defaults to public. Your transactions visible to anyone unless you change settings. Payment notes can reveal personal info.
Money sitting in app balances typically isn't FDIC insured. Platform failure could mean losing your balance.
Want your money now? Instant transfers cost 1.5-1.75%. Free transfers take 1-3 business days. Urgency = fees.
Paste the app's terms of service to understand your rights and risks.