PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

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FreedomHawk
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PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by FreedomHawk »

What's the latest on a preferred method for transferring money to friends and family members? I've had PayPal for years and haven't had any issues. I have my PayPal account tied to a BofA account with minimal funds. I'm looking for something for my college age son to use. We have him set up with a Cash Management account at Fidelity (along with a brokerage that was converted from a UTMA as well as his Roth).
Can he set up an online savings account to tie to PayPal or Google Pay, etc? I don't really want the PayPal account tied to his Fidelity account.
Thanks!
BogleMelon
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Re: PayPal, Google Pay, Zelle, Venmo?

Post by BogleMelon »

I use Zelle and Venmo (whatever the receiver prefers). I personally prefer Venmo. Venmo can work with Fidelity CMA, Zelle can't.
I use Google pay only in stores (POS) so I can't speak of how it works between people or if it can be used with Fido.
I try to stay away from Paypal unless I am paying for a phone on SWAPPA or something I can't avoid.
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Fletch
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Re: PayPal, Google Pay, Zelle, Venmo?

Post by Fletch »

Apple Pay.
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Ramjet
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Re: PayPal, Google Pay, Zelle, Venmo?

Post by Ramjet »

I like PayPal the best. A lot of younger people have Venmo so I have that too (I think PayPal owns them). I have a google phone so I have Google Pay by default. Sometimes I use it when I'm at the store or getting gas so I don't have to pull my credit card out
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anon_investor
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Re: PayPal, Google Pay, Zelle, Venmo?

Post by anon_investor »

Everyone I know seems to use Venmo (which is actually owned by PayPal). I mostly use it to send money to co-workers (splitting a meal, pooling money to buy a gift for another coworker, etc.) and to my kids' school related stuff (pooling money with other parents for class supplies, etc.). I have it linked to my checking account. Not 100% sure, but I assume you could link a savings account to it.

I have all the other services too, but people don't seem to use them as much.
GT99
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Re: PayPal, Google Pay, Zelle, Venmo?

Post by GT99 »

Venmo seems to be the most common these days, which to me is unfortunate, because it's my least favorite. The "social" aspect is idiotic (make sure you set your payments to private or all your friends can see everyone you pay...why does anyone care about a random payment their friend made to someone else?) and I don't like the user interface. I personally prefer PayPal and Zelle. I haven't used Google Pay for person to person.
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FreedomHawk
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Re: PayPal, Google Pay, Zelle, Venmo?

Post by FreedomHawk »

Is it still a good idea to link PayPal with an intermediary account instead of directly with Fidelity?
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anon_investor
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Re: PayPal, Google Pay, Zelle, Venmo?

Post by anon_investor »

FreedomHawk wrote: Wed Jun 23, 2021 8:50 am Is it still a good idea to link PayPal with an intermediary account instead of directly with Fidelity?
I would. I wouldn't link a savings account to PayPal either, just a checking account.
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FreedomHawk
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Re: PayPal, Google Pay, Zelle, Venmo?

Post by FreedomHawk »

anon_investor wrote: Wed Jun 23, 2021 9:14 am
FreedomHawk wrote: Wed Jun 23, 2021 8:50 am Is it still a good idea to link PayPal with an intermediary account instead of directly with Fidelity?
I would. I wouldn't link a savings account to PayPal either, just a checking account.
Why not an online savings account set up just for that reason?
lostdog
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by lostdog »

I assume most banks use Zelle?
edge
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by edge »

Zelle - no extra login/linked accounts
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anon_investor
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by anon_investor »

edge wrote: Wed Jun 23, 2021 9:23 am Zelle - no extra login/linked accounts
Not that many people use Zelle though...
runner3081
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by runner3081 »

anon_investor wrote: Wed Jun 23, 2021 9:38 am
edge wrote: Wed Jun 23, 2021 9:23 am Zelle - no extra login/linked accounts
Not that many people use Zelle though...
But many banks already have it included with their offerings. They just need to take 2 minutes to sign up. It is my preferred method.
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anon_investor
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by anon_investor »

runner3081 wrote: Wed Jun 23, 2021 9:45 am
anon_investor wrote: Wed Jun 23, 2021 9:38 am
edge wrote: Wed Jun 23, 2021 9:23 am Zelle - no extra login/linked accounts
Not that many people use Zelle though...
But many banks already have it included with their offerings. They just need to take 2 minutes to sign up. It is my preferred method.
At least for the people I interact with, everyone has Venmo, no one is going to sign up for Zelle (even if it is easy), they would say why don't YOU sign up for Venmo?
quantAndHold
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by quantAndHold »

Zelle is the easiest to use, but everyone has Venmo. So…Venmo, except for the crotchety neighbor lady who only uses Zelle. I use Zelle with her.
Yes, I’m really that pedantic.
Madbull
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by Madbull »

I just use who my credit union teamed up with, 'PopMoney'. It may not be as widespread as many of the others, but it works for when I need to pay businesses or individuals. The only downside is not being instant over a certain dollar threshold, but I like how it is already baked into my accounts, and can use it to transfer to accounts outside my credit union as well.
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FreedomHawk
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by FreedomHawk »

Clark Howard always warns about linking these services with your primary checking account due to security concerns. Some people have said no linking is required with Zelle. How do you fund the account then?
runner3081
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by runner3081 »

anon_investor wrote: Wed Jun 23, 2021 9:47 am
runner3081 wrote: Wed Jun 23, 2021 9:45 am
anon_investor wrote: Wed Jun 23, 2021 9:38 am
edge wrote: Wed Jun 23, 2021 9:23 am Zelle - no extra login/linked accounts
Not that many people use Zelle though...
But many banks already have it included with their offerings. They just need to take 2 minutes to sign up. It is my preferred method.
At least for the people I interact with, everyone has Venmo, no one is going to sign up for Zelle (even if it is easy), they would say why don't YOU sign up for Venmo?
I try to limit my money accounts, especially when having to link them other bank accounts, etc., don't use Venmo because of that - has NEVER been an issue. But that is just my philosophy.
runner3081
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by runner3081 »

FreedomHawk wrote: Wed Jun 23, 2021 10:25 am Clark Howard always warns about linking these services with your primary checking account due to security concerns. Some people have said no linking is required with Zelle. How do you fund the account then?
It pulls from your bank account, directly, because it is integrated.
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anon_investor
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by anon_investor »

runner3081 wrote: Wed Jun 23, 2021 10:25 am
anon_investor wrote: Wed Jun 23, 2021 9:47 am
runner3081 wrote: Wed Jun 23, 2021 9:45 am
anon_investor wrote: Wed Jun 23, 2021 9:38 am
edge wrote: Wed Jun 23, 2021 9:23 am Zelle - no extra login/linked accounts
Not that many people use Zelle though...
But many banks already have it included with their offerings. They just need to take 2 minutes to sign up. It is my preferred method.
At least for the people I interact with, everyone has Venmo, no one is going to sign up for Zelle (even if it is easy), they would say why don't YOU sign up for Venmo?
I try to limit my money accounts, especially when having to link them other bank accounts, etc., don't use Venmo because of that - has NEVER been an issue. But that is just my philosophy.
I end up needing to send people money via Venmo enough where it would be inconvenient to not have it. I am not going to give people paper checks or cash (especially during the pandemic, Venmo was just easier). But obviously everyone has a different situation.
rich126
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by rich126 »

There was an article today on increasing scams with some of these services.

One article is here: https://www.cbsnews.com/news/venmo-paya ... ment-apps/
Nonprofit U.S. Public Interest Research Group [PIRG] says top issues include scams, trouble using accounts and poor customer service. The group analyzed more than 9,200 complaints filed with the Consumer Financial Protection Bureau from 2017 to April of 2021.

Unlike with credit or even debit cards, app transactions are instantaneous, Mierzwinski said.

"There are no rules that protect you very well at all when your money goes out of your account and into somebody else's account," he said.

It is especially difficult when the scammed user initiated the transaction.

Krafka said he reached out to his bank to get the money back, but was told they couldn't help him.

"I was surprised that there was no recourse and that once it's done, it's done and there's nothing you can do," the professional musician said.
Probably a very small percentage but like many online only things, when things go poorly, it can be very frustrating trying to get it resolved, and in many cases it isn't possible to resolve since it is usually instantaneous.
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by Broken Man 1999 »

I can transfer and receive money to/from DDs and DW via our credit union "Friends and Family" transfer option. Zelle is a CU option as well, but I have never set it up as what I have already fits my need.

DW set up a Zelle account as she sells crafts occasionally. I suppose I could always transfer money to her, and she could send it wherever. Haven't ever needed to do so.

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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by jayjayc »

FreedomHawk wrote: Wed Jun 23, 2021 10:25 am Some people have said no linking is required with Zelle. How do you fund the account then?
Zelle is a $ money transfer framework that many banks built in collaboration. If your bank is one of them (see link below), then Zelle is already provided in your bank's website or app. You don't have to do anything to fund Zelle. The best thing about Zelle is that the recipient gets the money instantaneously. There's a few day wait for Venmo, Square Cash, and others. You should definitely set up Zelle between yourself and your son.

If your bank is not included, then you have to set up Zelle as a 3rd party service with its own login. Then you link your debit card to the Zelle app and it withdraws from your bank account.

You should set up Venmo for your son also so he can use that amongst his friends. It has a social aspect to it which is why all the young'uns use it.

https://www.zellepay.com/get-started

FreedomHawk wrote: Wed Jun 23, 2021 10:25 am Clark Howard always warns about linking these services with your primary checking account due to security concerns.
I wouldn't worry about that as long as you follow good cybersecurity practices such as using 2fa and unique passwords. Nearly all scams require you to transfer the money out of your account yourself. (Scammer: Oops, I sent you a $1,000 money order for that $100 item you're selling on craigslist. Please send me $900 back through Zelle, Venmo, Paypal, etc.)
Last edited by jayjayc on Wed Jun 23, 2021 2:42 pm, edited 1 time in total.
Katietsu
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by Katietsu »

Honestly, I think you should just set up Venmo and not consider which is “best.”. Venmo will be “best” for a college student because it will be the app used by all his college student friends. I agree that it should be linked to an account with a small balance and no overdraft protection.
UpperNwGuy
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by UpperNwGuy »

I dislike them all. I used to use PayPal a lot when I was buying things on eBay for a hobby. That ended years ago. More recently, my maid service used PayPal for its monthly bills, but they stopped using it when PayPal increased their fees on business accounts, so they went back to paper checks. Most recently I've been using Venmo to send funds to some Gen Z folks I do business with and to two of my three Millennial children. The third child insists on paper checks. I agree that Venmo is best for a college student. It's what they all use.
Exhilarate
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by Exhilarate »

Apple Cash is my top pick. Never had a hold even on large-ish amounts >2k and settles to bank same or next day. I use it with Fidelity CMA all the time. Requires an iPhone though.

Zelle for instant transfers, if under $2k. Sometimes has random delays especially on larger amounts or if destination bank differs from your own. Not supported by Fidelity.

PayPal hit me with week-long holds out of nowhere. Would avoid for P2P transfers, I just use them for purchases.

Venmo is fine and most popular, I don't use it much.
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by sandan »

FreedomHawk wrote: Wed Jun 23, 2021 8:03 am What's the latest on a preferred method for transferring money to friends and family members? I've had PayPal for years and haven't had any issues. I have my PayPal account tied to a BofA account with minimal funds. I'm looking for something for my college age son to use. We have him set up with a Cash Management account at Fidelity (along with a brokerage that was converted from a UTMA as well as his Roth).
Can he set up an online savings account to tie to PayPal or Google Pay, etc? I don't really want the PayPal account tied to his Fidelity account.
Thanks!
If you are regularly transferring money to your son by this method, Zelle. Its no fees, and goes direct between banks. I would never use zelle with a stranger (as in complete stranger). There is little or no recourse. I think its a nice form of payment to use when hiring a simple contractor like gardener/ handyman etc. They appreciate it because it eliminates the possibility of bounced checks and no credit card fees.

If your son is going to be transferring money to friends, he will have to use venmo. No way around this.

I dislike Venmo in so many ways.
1)Linking & using funds from my citicard to my venmo account triggers "cash advance fees". I also prefer not to provide bank account numbers to 3rd parties.
2)I'm old school and just pay for people and expect people to pay me back when the time is right. It feels really odd to do nickle and dime transactions with people. The trust building exercise is important to me. This holds for friends and work associates.
cbeck
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by cbeck »

Popmoney at popmoney.com.

PROS
Created by banks and most banks participate
Supports recurring transactions
Free for sender, $0.25 to receive
Can be setup at your bank, if supported, or at popmoney.com

CONS
Uses ACH and therefore delivery normally takes three business days
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anon_investor
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by anon_investor »

cbeck wrote: Wed Jun 23, 2021 9:24 pm Popmoney at popmoney.com.

PROS
Created by banks and most banks participate
Supports recurring transactions
Free for sender, $0.25 to receive
Can be setup at your bank, if supported, or at popmoney.com

CONS
Uses ACH and therefore delivery normally takes three business days
$0.25? Boo, the other ones are free!
anonsdca
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by anonsdca »

I dont use any of these to do any personal transfers.

However, I have had two venders, both plumbers oddly, say "cash, check, or Venmo". Since I dont carry cash, and dont have any checks, I have had to use Venmo for their payments. It is quick and easy.
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by AerialWombat »

I refuse to sign up for or use any of these services.

If I need to settle up with a friend or family member for a dinner or whatnot, I do it in good ol’ cash. This is also how I pay my lawn guy and a few other businesses locally.

Cash will never be trash.
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4nursebee
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by 4nursebee »

I've used Zelle and Apple pay. Apple Pay is easier and works great.
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by smectym »

“Cash App” for sheer ease of use. Right, I’d never heard of it either...a few months back my son suggested I check it out, and since then I’ve ditched Google Pay, Zelle &c.
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LatentStoic
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by LatentStoic »

Note this article that posted yesterday on money.com,Venmo Is About to Get More Expensive for Millions to Use.

In the wee hours last night, I now see that Venmo sent has this email to me, too. I am a Gen Xer who opened a Venmo account years ago to be ready to transact with the younger demographic, but have never actually used it. I've used Apple Pay sparingly with close family who have iPhones, otherwise bill pay with my local bank has sufficed to date for my needs.
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by Yarlonkol12 »

Just be careful with paypal and venmo. If your going to link them to a bank account create one just for this purpose, disable overdraft protection on the bank account, and keep only a small ammount in the bank account
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AllMostThere
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by AllMostThere »

FreedomHawk wrote: Wed Jun 23, 2021 10:25 am Clark Howard always warns about linking these services with your primary checking account due to security concerns. Some people have said no linking is required with Zelle. How do you fund the account then?
IMO Clark Howard is spot on and you are correct to make this a concern. I will repeat what I have posted when others ask about these apps - I wouldn't touch these apps with a 10 foot pole. Their consumer/customer protections are nearly non-existent. Getting an account hacked will clear out your funds never to be seen again, with little to no recourse. If one must insist upon using one of these apps then connect to a separate non-primary banking account with a low balance that will not be painful for loss WHEN hack occurs. Think risk reduction with these wild west apps.
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acegolfer
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by acegolfer »

In a few (?) years, the U.S. will finally have a brand new instant payment system called "FedNow". https://www.frbservices.org/financial-services/fednow (Most other countries already have a similar system in place. U.S. just have an archaic banking system to overhaul.)

Until this new system is in place, the solution for instant payment is more or less a patchwork. Some require opening an account and deposit money and allow instant transfer within its universe. I believe most systems fall into this category.

Zelle (which is developed by banks), otoh, uses your existing bank account + ACH. So you don't have to create a new account and make deposits. It relies on ACH but the funds becomes available much faster (usually instant). This is my preferred method to send/receive money from friends/family. But I never use it with strangers. It's not perfect, but closest to the upcoming Fednow.
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by acegolfer »

FreedomHawk wrote: Wed Jun 23, 2021 10:25 am Clark Howard always warns about linking these services with your primary checking account due to security concerns. Some people have said no linking is required with Zelle. How do you fund the account then?
Zelle is developed by major U.S. banks. It uses your current bank account (if your bank supports it). You send/receive money directly from your existing bank account using bank website. You don't need to create a Zelle account and fund it.
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Re: PayPal, Google Pay, Zelle, Venmo? [Preferred method for transferring money]

Post by Axelrod »

smectym wrote: Thu Jun 24, 2021 4:29 am “Cash App” for sheer ease of use. Right, I’d never heard of it either...a few months back my son suggested I check it out, and since then I’ve ditched Google Pay, Zelle &c.
This is my preferred method as well.
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