Android News: Google Wallet balances to get FDIC protection




Google Wallet


If you use Google Wallet and keep a balance of funds available in your account, Google is taking steps to help make things a little bit safer for you. Google is now moving funds stored in Google Wallet accounts into FDIC-insured bank accounts. Hopefully this extra insurance would never be something users have to take advantage of, but if they do they now have insurance up to $250,000 on the funds on deposit.


Normally users would not keep a balance in Google Wallet, using the service merely as a pass-through mechanisms. This is similar to how other services like PayPal operate. However, it is possible for users to end up with balances in their account. Sometimes this may be intentional as the user wants funds to be available in the account. Other times it may be because the user has assumed funds would be moved automatically.


Google Wallet competitors like PayPal and Venmo currently do not offer to put user funds in FDIC-insured institutions. However, PayPal does offer zero liability protection against fraud which would cover most typical situations where a user’s funds might be at risk.


Does the addition of this extra layer of protection make you more likely to use Google Wallet?


source: Yahoo! Finance




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