I used Venmo for a while and it works well. Square Cash I've found is even better since it skips the unnecessary social part, doesn't hold funds (directly transfers to bank) and somehow people can sign up without having to do the mini deposit account verify dance with their bank.
I'm not sure how this is possible since doesn't that mean that anyone can just input a debit card and start withdrawing money? It is nice though because people can sign up instantly instead of it taking a couple days.
It comes out of your bank account, that sounds awful. In that they don't have the security requirements of banks, or the fraud protection of credit cards. So Venmo gets hacked, and everyone's (non-refundable) money gets transferred to Russia. Great.
Well I knew that they used the refund rails, but I was curious how they protect against fraud. This seems to imply that there's nothing magical regarding the anti-fraud: they just try stay on top of it.
I'm not sure how this is possible since doesn't that mean that anyone can just input a debit card and start withdrawing money? It is nice though because people can sign up instantly instead of it taking a couple days.