Well, it is a little more complicated than this… 

Do you Venmo, Zelle, or PayPal your son or daughter, or buy groceries online? 

If yes, then you used an E-payment system.

How does it work? Is it Safe? Is it for You?

Let’s investigate a bit, and see how it works…

E- payments are transactions of money electronically transferred from one account to another. E-payments are intangible assets where no actual cash exchanges hands. 

Do you need to pay your friend for the pizza you purchased together or buy books for your college student… it’s easy to Venmo!  Did you order online groceries during the pandemic? You probably used your Digital Wallet to pay.

Using E-payment systems, means that no cash, credit or debit cards, or checks are needed. These transactions are processed using a phone or computer through a processing center.

Is it Safe?

The E-Payments are not like credit cards as there is no physical card or cash. When you set up your account, the procedures are similar.

• Download the App
• Connect to a bank account
• Set up recipients from importing contacts

This is the easy part. Security and privacy are the most important aspects of the E-payment process.

You cannot use the app unless it is connected to a bank account or sometimes a credit card. This is where you need to practice maximum personal security. 

Do not divulge to anyone the connected bank account as this is a “live” connection to your account.

Know your contacts. If John Williams requests money from you through Venmo and you do not know John Williams, do not send money. If there is someone I am sending money to for a purchase, I ask them for their phone number. Why? There are many people named, John Williams, so make sure it is the right one! When you look at Rick Cobello on Venmo, it is my picture. This is a security safeguard preventing the wrong person from getting the money.

Now, this is the tough one. The payment systems are secure and encrypted… but remember I am the cybersecurity guy. I never connect ANY of my E-payment accounts to my everyday checking account. I have a secondary account I set up that has a minimal amount of money available. It can be used for E-Gas apps, payments for Facebook Marketplace, or rent payments. If someone hacked my account, there is a small amount of money in the account that could be taken.  There are multiple ways to accept money, but this is best explained by the app you are using.

Is it for You?

I rarely write a check unless it is for a ski trip due to the high credit card cost and not being able to use E-payments yet. I do use Venmo but primarily use PayPal as it is set up well for secure online transactions. Venmo is still the app of choice for personal finance transactions.  It is easy, quick, and very efficient. It does require a bit more attention to security details but offers an easy way to pay for the pizza your college student purchased on Friday night.

Be wise and vigilant in using E-payments. It is a part of our cashless society.

Global Cybersecurity Solutions, Keeping an Eye on Security

Rick Cobello, a professor of Supply Chains and Cyber Security programs at Albany Law has over 30 years of experience in enterprise technology and security solutions. His career has spanned from local and state government to Fortune 5 companies, including General Electric. He has global experience in health care, a Master Black Belt in Six Sigma and Security certifications in CEH, CISSP, and CHFI. He currently is President of Global Cybersecurity Solutions.