Clark Howard: Protect yourself from risky payment apps

Consumer advisor Clark Howard is advising people about the risks associated with using payment apps, telling users ways to protect their money.

Howard has long cautioned against the dangers of payment apps, which often lack the consumer protections found with credit cards. He suggests setting up a separate checking account specifically for transactions made through these apps.

“What I recommend, if you’re finding more and more, you’re being asked to pay with payment apps, set up a small separate checking account,” Howard advises.

Payment apps have been criticized for their poor ratings with the Better Business Bureau and negative feedback on platforms like Reddit. Users have expressed frustration over the lack of consumer protections.

Howard further recommends using an online bank to set up the separate checking account, ensuring no fees are incurred. This strategy limits the amount of money at risk to only what is in the secondary account.

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