Understanding Payment Apps and FDIC Insurance

What is a common misconception about peer-to-peer payment apps like Venmo and Cash App?

• They do not allow direct deposits.

• They are only used for international transactions.

• They offer higher interest rates than banks.

• They are fully protected by FDIC insurance.

How do non-bank payment apps handle your cash deposits?

• They convert it into cryptocurrency.

• They store it in a digital wallet.

• They create an account at a bank to collect interest.

• They invest it in the stock market.

What does FDIC insurance protect you against?

• The failure of the non-bank company itself.

• Fraudulent transactions on your account.

• The failure of the bank where your money is held.

• Losses from stock market investments.

What is one way to ensure your money is protected when using payment apps?

• Keep all your money in the app.

• Use the app's debit card for all purchases.

• Move your money to an FDIC-insured bank account.

• Only use the app for international transactions.

What feature does Cash App offer to help protect your money?

• Insurance against app failure.

• Free international transfers.

• Higher interest rates on deposits.

• Auto cash-out to a bank account.