this post was submitted on 30 Jun 2025
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Mildly Infuriating

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I had $50 in venmo, which I used to purchase groceries, because my bank account is currently negative.

Instead of using the $50 in my bank account, instead, a week later the $50 came out of my bank account, not touching the Venmo balance at all.

So now I have an overdraft fee, effectively meaning I paid 1.5 times for those groceries.

I don’t have “overdraft protection,” I’ve told my bank I don’t want overdrafts to go through, but fuck me for being poor I guess.

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[–] [email protected] 14 points 15 hours ago (5 children)

A neighbor pointed out to me that Venmo, Paypal, and other such services lack the consumer protections of a credit card. So, I don't use them. If I have a problem with a purchase, I know my credit card vendor will contact the merchant and deal with it. Even if the vendor says "All sales are final", I'll get a refund when I challenge the sale.

[–] [email protected] 11 points 14 hours ago

Yep, they are explicitly not banks or traditional financial institutions and therefore have none of the standard protections. They don't only lack the protections of credit cards, but also of banks in general.

There are countless stories of people losing access to over $10k in their PayPal account with no option to appeal because PayPal decided their Twitch revenue looked too much like money laundering. Or because a single transaction involved a card later reported stolen. Or... just because. Some people aren't even given a reason.

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