P2P 101: Beginner’s Guide to Peer-to-Peer Payment Apps

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Posted On: July 19, 2021 by Peoples Bank of Kankakee County in: Budget General Personal Finances Saving

A growing trend for today’s casual marketplace, Peer-to-Peer(P2P) Payment Apps make sending funds from one person to another quick and easy. However, there are pros and cons to consider and potential fees that many are unaware of. Your trusted experts at Peoples Bank of Kankakee County are here to help you choose from these three safe options in P2P apps.

Zelle

This P2P app allows users to send money to other Zelle users by connecting via their registered phone number or email address. The advantage of using Zelle is that it allows its users to transfer money directly to and from their bank account, avoiding the step of moving money out of the app like many other P2P apps require. A few drawbacks are that you cannot connect a credit card to this app, you will need a mobile device to connect to use the app and you cannot transfer any money internationally.

View Zelle in the iOS App Store

View Zelle in the Google Play

Venmo

While Venmo is owned by PayPal, it has a few features that differ from the PayPal app. This app offers the ability to connect to a debit card that operates on funds in the user’s Venmo account. It also has over 40 million users which means that it would be most generally accepted by any peer you are trying to transfer funds with. The main drawback with Venmo is that there is a 3% fee to send money via credit card AND a 1% fee with a minimum of 25 cents/max $10 to transfer your Venmo cash instantly into your back account. To avoid this transfer fee, you must wait up to three business days to receive funds.

View Venmo in the iOS App Store

View Venmo in the Google Play

PayPal

PayPal has been around the longest of these three P2P apps and is widely used for online purchases. Because it is often integrated with online retailer checkout, the transfer limits are as high as $60,000 and you can even use an individual credit line. The drawback is that there is a 2.9% transaction fee and PayPal Credit’s interest rates are as high as most credit cards. In addition, free transfers can take up to five business days, and PayPal will charge you 1% to transfer immediately.

View PayPal in the iOS App Store

View PayPal in the Google Play

We hope these brief overviews have helped alleviate any anxiety you had with using these convenient and popular apps. If you are looking for more guidance on which P2P app best suits your needs, the experts at Peoples Bank of Kankakee County are here to help.

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

We have standard overdraft practices that are available after your account has been open for 30 days and as long as you maintain your account in good standing.
We also offer an overdraft protection plan, Overdraft Protection Sweep, a link to a savings account. It may be less expensive than our standard overdraft practices. To learn more, ask us about this plan.

This notice explains our standard overdraft practices.

What are the standard overdraft practices that come with my account?

After your account has been open for 30 days and as long as you maintain your account in good standing, we do authorize and pay overdrafts for the following types of transactions:

Checks and other transactions made using your checking account number
Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

ATM transactions
Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined.

What fees will I be charged if Peoples Bank of Kankakee County pays my overdraft?

Under our standard overdraft practices:

We will charge you a fee of up to $30 each time we pay an overdraft.
The maximum daily overdraft fee per presentment or item paid using the Overdraft Reserve Program is $150.00 per day.
No per item handling fee will be charged on de minimis overdrafts. De minimis overdraft for this policy means transactions that overdraw your account by $30 or less.
There is an overdraft fee of $5 per day that will be charged beginning the 4th consecutive business day your account is overdrawn.

Nonsufficient funds (NSF) fees - if an item drafted by you (such as a check) or a transaction you set up (such as a preauthorized transfer) is presented for payment in an amount that is more than the amount of money in your account and we decide not to pay the item or transaction, you agree that we can charge you an NSF fee for returning the payment. Be aware that such an item or payment may be presented multiple times by the merchant or other payee until it is paid, and that we do not monitor or control the number of times a transaction is presented for payment. You agree that we may charge you an NSF fee each time a payment is presented if the amount of money in your account is not sufficient to cover the payment, regardless of the number of times the payment is presented.

PAYMENT ORDER OF ITEMS - The law permits us to pay items drawn on your account in any order (for purposes of this section "items" means checks, orders and electronic transactions). To assist you in handling your account with us, we are providing you with the following information regarding how we process those items. When processing checks and orders drawn on your account our policy is to pay lower numbered checks and orders in numerical sequence, but electronic transactions are paid first in the order received. The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. There is no policy that is favorable in every instance. If the smallest items are paid first, you may have fewer NSF or overdraft fees, but the largest, and perhaps more important items (such as rent or mortgage payments) might not be paid. However, if the largest items are paid first, your most important items might be paid but it may increase the overdraft or NSF fees if funds are not available to pay all of the items. We think our policy attains a reasonable balance between minimizing additional costs to you and paying your more important items. We encourage you to make careful records and practice good account management. This will help you to avoid creating items without sufficient funds and incurring the resulting fees.

What if I want Peoples Bank of Kankakee County to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions after your account has been open for 30 days, you may opt in.

You have an ongoing right to change this consent at any time. If your overdraft privilege has been revoked for any reason, the opt-in or opt-out selection may not apply. Please contact your nearest office for more information.

Alternate ways to Opt In/Out or make changes:

By Phone. Our Customer Care Representatives can be reached at 815-936-7600.
By Mail. Peoples Bank of Kankakee County, 333 E. Court Street, Kankakee, IL 60901
In Person. Please visit your local office and ask a representative to help you decide which plan is best for you.