What are the advantages and disadvantages of Popmoney payments?
Popmoney offers bank-to-bank electronic money transfers. Popmoney for Small Businesses enables enterprises to utilize the service as well. It was first created for payments between friends and family. Although the business is reputable, it is nevertheless advisable to make sure you are not being conned before sending any money.
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Digital Transfers
Popmoney uses the Automated Clearing House (ACH) network to transfer money directly between banks. You don’t have a Popmoney account that retains a balance, unlike other payment methods (like PayPal or Venmo), and the funds are always in the sender’s or recipient’s bank account. 1 An individual can receive payments using their email address or mobile number.
Payment Alternative
You don’t need to carry cash or make checks when making an electronic payment. When you’re out with pals, one person can pay the bill, and each person can submit their payment electronically (as opposed to everyone fetching change for a $20 bill or handing over a stack of credit cards). One individual can pay, perhaps accrue rewards on their credit card, and receive electronic reimbursement. You don’t have to make changes for friends, cash checks, or wait for folks to eventually pay you back if you’re the one receiving money.
Personal payments
Sending money to a known and trusted person is the best way to use Popmoney (or to receive payment). Some companies use Popmoney business accounts, while others “informally” accept payments from clients using personal accounts.
Be mindful that not all of the usual protections in the event of fraud may apply if you use the personal service for commercial payments. Popmoney may be a convenient way for you to pay your landlord or nanny, but it carries a certain amount of risk when you shop online due to the possibility of identity or card theft.
Process Duration
As Popmoney uses ACH procedures, which normally take 3-5 business days to process, payments can take several business days.
2 That’s fine most of the time. However, there have been online grievances about payments that have been stopped and wait times that seem to go on forever. If it’s your first time utilizing the service, stay away from making any time-sensitive payments. You’ll get a sense of the timing and be able to steer clear of unpleasant shocks once you’ve transferred and received money a few times (and properly set up your accounts).
The majority of Popmoney complaints center on money being held in escrow for longer than anticipated, preventing both the sender and the recipient from accessing the funds (but things get resolved eventually). The quickest payments are those funded with a debit card, and they may be in the recipient’s bank account within one business day.
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Cost
Sending a payment using Popmoney.com or the app costs $0.95. The account you have linked to your Popmoney profile, referred to as your Eligible Transaction Account, is free to receive payments into. 5 If Popmoney is a feature of the account, check with the bank or credit union first as they have their own fee schedules. Most institutions have transaction fees of no more than $1.
Getting Paid
You will receive notification of payments made using Popmoney by text or email.
7 You’ll need to choose where Popmoney should send the money if you’ve never used the service before.
To claim the funds, all you need to do is be signed into your bank account and confirm that your bank uses Popmoney. If not, you must enter your routing and bank account information on Popmoney.com. There is a list of cooperating banks on the website.
There shouldn’t be a fee to pick up the funds unless you requested it by making a request for money (although your bank or credit union may charge a fee).
Safety
When receiving money or requests from friends, people who have never heard of Popmoney are frequently surprised to learn that it is a legal payment service.
However, there’s always a possibility that you’ll receive a phony email from a “friend” that directs you to a bogus website intended to steal your information (and money).
If you receive an unexpected message, proceed with caution and double-check everything with a buddy before clicking. Make sure you only use a secure section of your bank’s website or the official Popmoney website to access the service.
Sharing Account Information
You don’t need to give anyone access to your bank account information (routing and account numbers) in order to transfer or receive money; everyone can use email addresses or phone numbers instead.
On the other hand, when you write a check (or endorse one that was sent to you), other people might be able to read private account information and replicate your signature. Popmoney can therefore provide some level of privacy.
You can send and receive payments right away if your bank accepts Popmoney. Your payee will have to give Popmoney access to their bank account information if they don’t use a bank that partners with the service, and not everyone wants to do that. Likewise, in order to receive a payment on a bank account that is not Popmoney but has received a payment, you must supply that information. Once more, be sure to only conduct this through the authentic Popmoney.com website or app.
