The stories about scams tied to mobile payment apps are enough to make anyone hesitate. They did for me. I’m usually quick to try new tech, but this was one area where I held back.
That changed when our youngest son moved into his college apartment. I needed a simple way to send him money each month. That’s when I finally agreed to let him teach me how to use Cash App.
I’ve been using it cautiously for about two years now, and it has simplified our financial transactions. Not only can I use it to give him a monthly allowance, but it has worked well to have him pay directly for certain things and then I can quickly reimburse him.
I haven’t had a need to branch out and use a mobile payment with anyone else until now. Last month, my hairdresser announced that she would be passing on the 3.99% card fee for using a debit/credit card and offered Venmo and Zelle as payment options along with the old-fashioned check. But remembering to bring a check, or carrying one around all the time, just isn’t practical anymore.
We live in the day and age of mobile payments. I decided to learn how all of the platforms work so I can feel comfortable using them safely with others besides my son.
Once I started looking into it, I realized these apps aren’t all the same. Here’s how they actually differ.
Venmo vs. Zelle vs. Cash App – What’s the Difference?
Zelle
- Built into many bank apps (like Chase or Bank of America).
- Zelle does not hold funds in an app – money moves directly between bank accounts.
- Usually arrives within minutes.
- Best for: sending money to people you trust – because it goes straight from bank to bank.
Venmo (owned by PayPal)
- A separate app you download; uses a phone number or email to send money.
- Includes a social feed (you can turn this off – and should).
- Allows you to keep money in the app before moving it to your bank.
- Best for: paying friends or family who already use Venmo (especially younger users).
Cash App
- A separate app you download; uses a phone number, email, or $Cashtag to send money.
- Allows you to keep a balance or spend it with a debit card.
- Instant transfers have a small fee; free transfers take 1–3 days.
- Best for: flexible, everyday use if you want one simple app that does more than just send money.
Some Additional Specifics
Payments sent through these apps are immediate and usually irreversible. Once the money is gone, it’s gone. If you wouldn’t hand this person cash, don’t send the payment.
If you fund a payment with a credit card, you may be able to dispute it through your card issuer. But if you send money directly from your bank account, there’s usually no way to reverse it. In some cases of clearly unauthorized transactions, the app may look into it and possibly reverse the charge.
But those situations are not the norm. Venmo and Cash App are not buyer-protection platforms for everyday “send money” use. They don’t offer the same level of protection you get with a credit card.
Known Scams with Payment Apps
Most problems with these apps aren’t technical; they’re scams. Here are the ones to know.
#1. The Fake Bank Text Scam (Most Common)
This starts with a real-looking text from “your bank” asking if you authorized a large Zelle payment. When you reply “NO,” you get a call from a “bank agent” who offers to help you reverse it, and in doing so tricks you into sending money to them.
#2. The “Send Money to Yourself” Scam
No legitimate bank or fraud department will ever ask you to use Zelle or Venmo to move or verify funds. If someone does, it’s a scam, full stop.
#3. The Grandchild Emergency Scam
You receive a message claiming to be your grandchild in trouble. He needs bail money, she is stuck at the airport, their phone is broken. Fraudsters now use AI voice cloning to make it sound convincing. Always call your grandchild back on their known number before sending anything. Or establish a secret code word you can ask in this situation.
#4. The Overpayment Scam
Someone “accidentally” sends you too much money and asks you to send the excess back. The original payment was fraudulent, and you’ve just sent real money.
#5. Prize/Lottery Scams
Older adults are more likely to be targeted by prize scams, where they’re told they’ve won a reward but must pay a fee or taxes to collect it.
#6. The Verification Code Scam
Whether it’s a bank or a payment app, if you’re ever asked to share a verification code, it’s a scam. That code is the key to your account.
The Golden Rules
- Only send money to people you know in real life.
- When in doubt, pick up the phone and call. DO NOT reply to the text.
- Never share a verification code with anyone, ever.
- Enable transaction alerts so you know instantly if something happens.
- Consider establishing a family code word that only your real grandchild would know for emergency money requests.
How to Use Them
To use Cash App or Venmo, the first step is to download the app, set up your profile and add a credit or debit card.
Notes on Zelle
If you want to use Zelle, check whether your bank integrates with it. You will need to sign up or activate it using your cell number through your online bank account. To use Zelle, you access it through your bank’s app. To send money, you add a contact using their cell number or email address. On the main screen, enter the amount and click “Pay”. This opens another screen where you select the recipient and add a note.
Notes on Venmo
On Venmo, make sure personal payments stay standard (not marked as a purchase). Turning on purchase protection adds a fee and changes how the transaction is treated.
Payments marked as goods or services may be reported to the IRS if they meet reporting thresholds, so it’s important to label transactions correctly.
The Venmo app is social by design, making it a staple among Gen Z and millennials. But those of us over 60 who choose to use this app will want to take a close look at the privacy settings. Be sure to set your default privacy to Private (under the gear icon in settings). This prevents future payments from appearing publicly. You’ll also want to set your friend list to private. This prevents others from seeing who you’re connected to.
Scammers rely on confusion. The more familiar you are with these tools, the easier and safer they are to use.
Let’s Have a Conversation:
Do you use mobile money transaction apps? Which ones have you tried and what’s your experience so far? Have you modified any settings?
