Popmoney is an online payment platform that transfers money electronically from one local bank account to the other. It was typically invented for executing payments between family and friends, and the platform allows small businesses to take advantage of this service as well.
Popmoney is a legitimate payment service – but as for other forms of payment, you need to verify that you are not going to get scammed prior to sending money.
Basics of Popmoney
Here is how Popmoney features and what you can get from it:
One option for payment: With electronic transactions, you don’t have to write a check or move cash about. If you are together with some friends, one of you can cover the whole bill and have other people’s funds shared electronically (as against everyone handing over a pile of credit cards or receiving change for a $40 bill). If you happen to be the one getting paid, cashing a check, making change for colleagues, or expecting that others will pay you back at the end of the day won’t be necessary.
Electronic transfers: Popmoney leverages the ACH (Automated Clearing House) network to transfer funds directly from one bank account to another. Unlike other modes of payment (Venmo or PayPal), there is nothing like holding any balance in a Popmoney account – the fund is automatically set to land on the recipient or sender’s bank account. Individuals can be paid via their mobile number or email address.
Processing time: It can take a couple of business days for payments to be processed with Popmoney. In several cases, that’s fair. However, cases of seemingly unlimited wait times and frozen funds have been reported online. If you have a time-sensitive payment, try avoiding this, especially if you are using the service for the first time.
Once you’ve successfully received and sent funds a couple of times, you will definitely have a feel for the timing, and will be able to keep away from annoying surprises. Most downsides about Popmoney are connected to funds being withheld longer than necessary such that neither the receiver nor the sender will be able to access the funds (though issues get resolved with time).
Personal payments: The realistic use of Popmoney is receiving or sending money to people you trust and know. Some enterprises have got business accounts set up with Popmoney, while others receive business payments using informally-created personal accounts.
If you accept business payments using the personal service, you may not get all the typical securities in the occurrence of fraud. It is safer to pay your babysitter or landlady using Popmoney, but purchasing items online with this service might be risky due to the high identity or card theft potential.
Funding made using a debit card can get into the receiver’s bank account (being the fastest mode ever) in less than one business day.
Availability: Popmoney is found to be automatically incorporated with bank accounts in most credit unions and banks. If your financial institution already has an association with Popmoney, once you’re logged in your account, you’ll be able to receive and send payments. But if your bank isn’t associated with Popmoney, you can still access the service via Popmoney.com to send and receive payments.
Cost: When you’re sending money through the Popmoney.com site or its mobile app, the charge is $0.95. Credit unions and banks have their own charge schedule. So, find out if Popmoney is already associated with them. In most financial institutions out there, every transaction costs $1 or you transact for free in some.
- Widely acceptable
- Lag time before payments can be used
- No fraud security
When you’re paid by someone to use Popmoney, you’re going to receive an email or text message informing you that you have got a payment. If you haven’t used the service ever, then you’d need to supply where Popmoney should send the payments.
And, if your bank or any other financial institution uses Popmoney, the whole process becomes simple: Just have the funds to claim once you’re logged in your bank account. Otherwise, you may have to supply your bank account details including the routine number to Popmoney. The platform displays a list of the participating financial institutions.
If you never initiated the transfer by first requesting funds, picking up the money shouldn’t attract a cost (though your financial institution may charge a token fee.
How safe is Popmoney?
Popmoney is known to be a legitimate payment processing company – which is regularly a surprise to those who haven’t got paid through it from colleagues or heard about it.
However, chances are, you can receive a forged email from your ‘colleague” which redirects you to a quack site created purposely to defraud you. If you get unpredicted messages, be cautious – make a proper verification with your colleague prior to clicking on any button. Ensure you’re accessing the service through the Popmoney.com official website or a secure portal on your institution’s website.
Buying things using Popmoney could be insecure. There is no “Purchaser security” on this platform, so you bear the loss if you cannot get what you ordered – or if the items expected never get delivered at all. Other modes like debit or credit cards (preferably PayPal for security) and credit cards offer more security measures. Popmoney has been leveraged to scam so many people through the auction websites, so has Venmo.
Sharing Account Details
When receiving or sending payments, you do not have to share or disclose your bank account details (account and routine numbers) with a colleague – everybody can use phone numbers or email addresses. Alternatively, when a check is written by you (or one that was written to you is endorsed by you), third-parties may be able to view sensitive account details and duplicate your signature. Eventually, Popmoney can provide some privacy.
If your bank is associated with Popmoney, you have a ready account to automatically receive and send payments. However, if you send money to someone who doesn’t leverage a bank associated with Popmoney, your recipients will have to supply their bank account details to Popmoney – but not everyone is willing to do that.
Similarly, if you’ve got a payment and have a bank account not associated with Popmoney, you’ll be required to supply your bank account information to receive the payment. And ensure you only provide such information on the Popmomey.com mobile app or website.
The Bottom Line
Popmoney is a cost-effective way to transfer funds. The charge system is equitably simple, and it could be free, based on your financial institution. If it’s a subset of your institution’s services, then you’re not required to sign up.
Popmoney can be infuriating. If you must be with funds all the time, leverage Popmoney cautiously because of the unforeseeable amount of time the transfer may require. For low charges, it is better you consider alternatives and cost-effective options like Venmo, PayPal, or Square Cash.