You’re out to dinner with friends, and when the bill arrives, you realize you’ve forgotten your wallet. No problem—you’ll just use a peer-to-peer payment app to send your share to a friend. It’s quick, convenient, and seemingly secure. But as you tap through the transaction, have you ever wondered: which of the following safety and privacy features is not included in a P2P app or service?
This isn’t just a theoretical question. P2P (peer-to-peer) payment services have become a staple in our digital wallets, with apps like Venmo, Cash App, and Zelle processing billions of dollars in transactions annually. Their popularity stems from their convenience—instant money transfers right from your smartphone without the hassle of cash or checks.
But convenience sometimes comes at a cost. What many users don’t realize is that the safety nets we take for granted in traditional banking don’t always exist in the P2P world. Understanding these gaps isn’t just about answering a trivia question—it could be the difference between a secure transaction and a costly mistake.
In this guide, we’ll unpack the safety and privacy features typically included in P2P apps, identify what’s notably missing, and provide practical tips to protect yourself when using these services.
Quick Refresher: What Is a P2P App or Service?
Before diving into specific features, let’s clarify what P2P services actually are.
Peer-to-peer apps allow you to transfer money, files, or data directly to another person without requiring a traditional intermediary like a bank or large financial institution. These digital platforms create a direct line between users, making transactions faster and typically more affordable than conventional methods.
Common examples include:
- Venmo: Popular for splitting bills, with social feed features
- Cash App: Known for quick transfers and additional features like investing
- Zelle: Often integrated directly with banking apps
- PayPal: Offers P2P transfers alongside its merchant services
- Google Pay: Integrates with the broader Google ecosystem
People gravitate toward these apps for several reasons: they’re typically free (or very low-cost) for basic transfers, transactions process almost instantly, and they eliminate the need to handle physical cash. Plus, they’re accessible to almost anyone with a smartphone and bank account or debit card.
Common Safety & Privacy Features in P2P Apps
When examining which of the following safety and privacy features is not included in a P2P app or service, it’s helpful to first understand what protections these platforms typically do offer. Most reputable P2P services include:
🔐 Data Encryption
P2P apps use encryption to protect your financial data and personal information during transmission. This means your data is scrambled into code that can only be deciphered with the correct encryption key, making it extremely difficult for hackers to intercept your information as it travels between devices or servers.
🧾 Transaction Notifications
Real-time alerts notify you whenever money moves in or out of your account. These notifications serve as an early warning system for unauthorized transactions, allowing you to quickly flag suspicious activity before significant damage occurs.
🔍 User Verification Methods
To help ensure that you’re sending money to the intended recipient (and that no one unauthorized is sending from your account), P2P apps typically implement various verification measures:
- Email verification
- Phone number confirmation
- Multi-factor authentication (requiring something you know, like a password, and something you have, like your phone)
- PIN or biometric authentication for transactions
🛡️ Fraud Monitoring Tools
Behind the scenes, most P2P services employ sophisticated algorithms that scan for unusual patterns. These systems flag potentially fraudulent activities, such as:
- Multiple failed login attempts
- Transactions that deviate significantly from your normal behavior
- Suspicious transfer patterns
- Logins from unrecognized devices or locations
🔒 Privacy Settings
Better P2P apps offer customizable privacy settings that let you control who can see your activity. For example, Venmo allows users to set transactions to private, friends-only, or public—though many users don’t realize their transactions may be visible by default.
✅ Regulatory Compliance
Many P2P services implement Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. These regulations require the app to verify users’ identities and monitor for suspicious activities that might indicate money laundering or other financial crimes.
It’s important to note that not all P2P apps include all of these features, and implementation quality varies significantly across platforms. This brings us to our central question…
So…Which Feature Is Not Typically Included in a P2P App or Service?
When investigating which of the following safety and privacy features is not included in a P2P app or service, one glaring omission stands out above the rest:
❌ Buyer/Seller Protection for Non-Merchant Transactions
This is the critical protection gap in most P2P services: unlike credit cards or traditional payment platforms, most P2P apps offer little to no protection for transactions with people you don’t personally know, especially for goods and services.
Here’s a scenario that illustrates this risk:
You find concert tickets for sale in an online forum. The seller seems legitimate and suggests you pay via Venmo or Cash App for convenience. You send $200, but the tickets never arrive—and the seller disappears. When you contact the P2P app’s support team, you discover an unpleasant truth: they won’t refund your money because their service is designed for transfers between friends and family, not commercial transactions.
It’s worth noting that some services like PayPal do offer a form of buyer protection, but only when you specifically use their “Goods and Services” option (which typically charges the seller a fee) rather than their “Friends and Family” option. Many users don’t understand this critical distinction and may choose the wrong option to save on fees.
Why This Feature Isn’t Included (and What That Means for You)
Understanding which of the following safety and privacy features is not included in a P2P app or service requires understanding the business model behind these platforms. P2P apps were fundamentally designed for transfers between people who already know and trust each other—friends splitting a dinner bill, roommates paying their share of rent, or family members sending birthday money.
Including robust buyer/seller protections would fundamentally change how these services operate:
- It would require substantial overhead for dispute resolution teams
- Transaction fees would likely increase to cover the cost of reimbursing fraudulent transactions
- The instant nature of transfers would be compromised by holds and verification steps
As Venmo states in their own terms: “Venmo is designed for payments between friends and people who trust each other. Avoid payments to people you don’t know, especially if it involves a sale for goods and services (like event tickets or an item from Craigslist).”
The business decision to exclude purchase protection keeps these services fast, easy, and often free—but it shifts the risk entirely to you, the user.
What to Watch Out For When Using P2P Services
Given which of the following safety and privacy features is not included in a P2P app or service, users should be particularly vigilant about certain risks when using these platforms:
Common P2P Scams
- Fake refund scams: Someone claims they accidentally sent you money and asks for it back—but the original payment will later be reversed after you’ve already “refunded” them
- Overpayment schemes: A buyer sends more than the agreed amount and asks you to return the difference, then cancels their original payment
- “Too good to be true” offers: Deeply discounted items where the seller insists on P2P payment methods
Limited Dispute Resolution
Unlike credit card transactions or even PayPal merchant payments, most P2P transfers offer minimal paths for dispute resolution. Once money leaves your account, it’s essentially gone unless the recipient voluntarily returns it.
Warning Signs
Be wary of:
- People rushing you to send payment immediately
- Sellers who only accept P2P transfers (especially for high-value items)
- Requests to use “Friends and Family” options for purchases
- Communication that moves quickly from legitimate platforms to messaging apps
Verification Importance
Always triple-check recipient details before sending money. A simple username or phone number typo could send your money to a stranger—with little recourse for recovery.
Best Practices for Safer P2P Usage
Since we now understand which of the following safety and privacy features is not included in a P2P app or service, here are strategic ways to protect yourself:
When to Use P2P Apps (and When Not To)
- DO use P2P apps for friends, family, and people you personally know and trust
- DON’T use them to pay strangers, online sellers, or marketplaces
- DO consider using services with buyer protection (like PayPal Goods & Services) when making purchases
- DON’T send payments to anyone pressuring you or creating a sense of urgency
Security Best Practices
- Enable two-factor authentication on both your P2P app and the email account linked to it
- Create a unique, strong password for your payment apps
- Keep your app updated to the latest version to benefit from security patches
- Consider creating a separate checking account with limited funds for P2P app connections
- Review privacy settings to ensure your transaction history isn’t publicly visible
- Monitor your transaction history regularly for unauthorized activity
Emergency Steps
Know what to do if something goes wrong:
- Contact the recipient directly first
- Report the issue to the P2P service immediately
- Document all communication and transaction details
- File a police report for clear cases of fraud
- Understand that recovery may be limited or impossible
Comparing Popular P2P Apps: What’s Included, What’s Missing
When examining which of the following safety and privacy features is not included in a P2P app or service, it’s helpful to compare specific platforms:
| Feature | Venmo | Cash App | Zelle | PayPal P2P | Google Pay |
|---|---|---|---|---|---|
| Data Encryption | ✅ | ✅ | ✅ | ✅ | ✅ |
| Transaction Notifications | ✅ | ✅ | ✅ | ✅ | ✅ |
| Multi-factor Authentication | ✅ | ✅ | ✅ | ✅ | ✅ |
| Fraud Monitoring | ✅ | ✅ | ✅ | ✅ | ✅ |
| Privacy Controls | ⚠️ (Default public) | ✅ | ✅ | ✅ | ✅ |
| Buyer/Seller Protection | ❌ | ❌ | ❌ | ⚠️ (only with “Goods & Services”) | ❌ |
| Cancel/Recall Payments | ❌ | ❌ | ❌ | ⚠️ (sometimes) | ❌ |
⚠️ = Partially available or limited
This comparison highlights how buyer/seller protection is consistently the missing feature across most platforms, with PayPal offering the only significant exception (and even then, only when specifically selecting the correct payment option).
Final Thoughts: Know What You’re Using
As we’ve explored throughout this guide, understanding which of the following safety and privacy features is not included in a P2P app or service is crucial for protecting yourself in today’s digital financial landscape.
P2P payment apps offer tremendous convenience, but they weren’t designed to replace the protections of traditional payment methods in all scenarios. The critical distinction is context: these apps excel at facilitating transactions between people who already trust each other, but they lack the safety nets needed for commerce with strangers.
This doesn’t mean you should avoid P2P services altogether. Rather, use them appropriately:
- For splitting bills, reimbursing friends, or sending money to family? P2P apps are perfect.
- For buying goods online, purchasing from strangers, or commercial transactions? Look for platforms with explicit buyer protections.
The next time you open your payment app of choice, take a moment to review its privacy settings and remember its limitations. A moment of caution before sending money could save you from a costly lesson about the gaps in P2P protection.
FAQs
Can I get a refund if I send money to the wrong person?
Generally, no. Most P2P services consider transactions final and won’t force a recipient to return funds. Your only recourse is usually to contact the person directly and hope they’ll voluntarily return the money.
Is P2P safe to use for business?
Standard P2P transfers aren’t recommended for business transactions. Some services offer specific business options (like PayPal Business or Square for business) that provide additional protections and are better suited for commercial use.
Do P2P apps protect against fraud?
While they have some fraud monitoring systems, most P2P apps place the primary responsibility for preventing fraud on the user. They typically won’t refund you if you voluntarily send money to a scammer, even if you were deceived.
Is using a bank safer than P2P apps?
Traditional bank transfers and credit card payments typically offer stronger consumer protections and dispute resolution processes. However, they’re often slower and less convenient than P2P transfers. Choose the right tool for each specific situation based on the balance of convenience versus protection you need.
What should I do if I suspect I’ve been scammed via a P2P app?
Report it immediately to both the P2P service and your linked bank or card issuer. While recovery may be difficult, quick action maximizes your chances. Document everything and consider filing a police report for significant losses.
