Sending money on an app? Here are some best practices

CampusCrowd
Tue, 26 Aug 2025 14:50:22 +0000
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Money-transfer apps and services like Zelle have revolutionized the way we send and receive money. Also known as peer-to-peer payments (P2P), P2P payments are almost ubiquitous among college students.

Whether you’re using P2P payments to buy items or services, split a food bill with a friend, or complete larger transactions like paying rent or receiving funds from friends or family, here are some best practices:

Be aware of fees
Some transactions may come with added fees, particularly if you want immediate access to your funds. Most P2P apps hold onto your funds until you choose to move them to your linked bank account. If you want the money sent immediately so you have instant access to the funds at your bank, most apps charge an instant transfer fee that is typically a small percentage of the overall amount, and some apps have a maximum instant transfer fee, like $25. If you’re willing to wait 1-2 days for your money to be deposited to your linked bank account, you can avoid the instant transfer fee so you’ll get the full amount.

If you know you’ll need your money quickly, try to use an app with the lowest transfer fee or the fastest transfer time without fees, or use a P2P service like Zelle which is offered right in the banking apps of participating financial institutions, and does not charge an additional fee to get immediate access to your money. Zelle moves money directly between the sender and recipient’s bank accounts; there’s no separate app holding your funds.

While paying instant transfer fees occasionally won’t make a significant financial impact, be careful of making it a habit, especially for larger sums. Those fees add up over time and you could find yourself losing money using the apps in the long run.

Stay vigilant about scams
Like any method of payment, there’s a risk of scams. Scammers like to use methods of payment such as P2P payments because it’s like cash –? they get the money right away and you typically cannot cancel or reverse it once sent. These payment methods also may not provide certain purchase protections when buying items. Zelle warns its users to only pay others they know and trust.

Check payment details
Sending money to the wrong person because you entered incorrect or outdated information could mean it’s lost forever, as you’re relying on someone else’s sense of honesty to return the money. Your bank may be able to request that your unintended recipient’s bank return the money, but it typically isn’t required that they do so.

When entering payment information, slow down and make sure all details (email, phone number, account handle, etc.) are accurate so the money reaches its intended recipient.

Protect your personal info
You may want to avoid sending money while using public Wi-Fi. A safe network—like your home’s internet—may offer more protection.

The apps do encrypt your data and most offer two-factor authentication for additional security, but it can’t hurt to wait until you get to a secure network to complete your transaction.

The bottom line
Using P2P payments might be the most popular way for college students to complete financial transactions. The speed and simplicity of the payments make it easy for students to send and receive money immediately, cutting out trips to the ATM and other in-between steps that used to be required.

Always be aware of potential scams – never send money solicited through a text message or to a recipient you don’t know. Even when you know your recipient, make sure you have their correct payment information so the funds go to the right person. And if you’re using a P2P app that holds your funds, be careful about racking up instant transfer fees when moving money to your bank account.

These best practices can help you avoid hidden money traps and help keep your transactions safe.

For more financial health tips, visit chase.com/financialgoals.