Avoid these costly mistakes when sending money

February 15, 2025

By Kim Komando

You and a friend split some apps and cocktails. Cash? Nah, payment apps make it way easier. Type in the amount, hit send and boom, you’re set.

But every time you send money, there’s a risk it could end up in the wrong place. That’s why I’m here to help you get it to the right place. Let’s dive in.

💸 Use a money order

For my Gen Zers, you can find these at your bank, credit union, USPS and some grocery stores. There’s a $1,000 limit and a small fee of a few bucks. But it’s more secure than sending cash or a check that can get lost or stolen.

USPS only takes cash, debit cards and traveler’s checks. Fill out the form, pay the amount (plus the fee), and track it on the USPS app. It usually takes a few business days to arrive. The person you sent it to will need to pick it up in person.

🛑 Caution: Money orders aren’t easy to reverse once they’re cashed. That’s why scammers love them. Never send it to someone you don’t trust.

📱 There’s an app for that

Payment apps like Venmo, Apple Pay, CashApp and Zelle are great because they’re quick and easy. Here’s the deal: If you send money to the wrong place, you’re not getting it back.

Always verify the recipient’s username, email or phone number. A single wrong digit can send your money into the void. For pals and people you send to often, don’t type in their info each time. Your app of choice saves previous recipients.

Need to send a lot of money? Start with a small test transfer to confirm it goes to the right place.

🛑 Use Venmo? You might not know that every time you send or receive money, it’s public by default.

Anyone (including shady folks) can see how much you sent your roommate for rent. Make your Venmo feed private so you don’t become a target.

• Open Venmo, tap Me in the lower right corner, then go to Settings (gear icon at the top right corner) and find Privacy. Under Default Privacy Settings, press Private. A pop-up will ask you to confirm. Tap Change Anyway.
• You’re not done yet since all your history is still visible. On the Privacy page, under More, press Past Transactions > Change All to Private. Press OK to confirm. Give the app a few minutes to update.

CashApp, PayPal and Zelle keep the details private by default.

🔒 Add more security

Everyone (yes, that’s you) should set up 2FA on payment apps. Follow the steps below. Remember, these steps may be different depending on your phone’s make and model.

• CashApp: Go to your profile icon (upper right corner) > Privacy & Security and toggle on Security lock. Enter your PIN, Touch ID or Face ID. Done!
• Venmo: Tap Me > Settings > Face ID & Passcode (iPhone) or Passcode & biometric unlock (Android). Toggle it on, and enter your new passcode twice to confirm it. If you’re on an iPhone, you’ll see a pop-up asking if you want to use Face ID instead. Press Allow to do that.
• Zelle: Set it up through your banking app. Head over to the Zelle section and go to the security settings. Press either two-factor authentication or multi-factor authentication, depending on your bank.

Look at that. Now you’re handling your dollars with common cents. (Yes, I heard you groan.)