05/19/2025
Many small businesses use Zelle/Venmo/CashApp/PayPal to make purchases, pay invoices, pay independent contractors, etc. and find it a convenient way to pay or receive funds. For large invoices they may use ACH, credit cards or checks, all of which offer greater fraud protection and provide better audit trails. If your company or client uses apps to make payments, consider these best practices:
• Have a business account for your firm if you use a personal device to make or receive company payments. This helps keep personal and business transactions separate and provides better audit trails. Some apps offer options designed for business, such as Venmo for Business, which offers more secure transactions.
• Link apps to credit cards—not bank accounts. This provides greater fraud protection under Regulation E, Electronic Fund Transfers. (Reg E is enforced by the Consumer Financial Protection Bureau, which is being dismantled by the administration.)
• Enable the app’s MFA such as biometric security (Face ID) to prevent unauthorized access.
• Document electronic transactions with electronic receipts, and integrate apps with company accounting software for later reconciliation.
• Avoid public Wi-Fi—not just when making payments, but all the time. To further avoid data interception, use encrypted networks.
