Relax! The money you have in Google Wallet is FDIC insured

Relax! The money you have in Google Wallet is FDIC insured
Google's decision to put consumers' Google Wallet balances in federally-insured financial institutions means users of the mobile payment service can sleep soundly at night. That is because Google Wallet balances as high as $250,000 are now insured by the FDIC. Even if a financial institution used by the mobile payment service closes its doors, Uncle Sam will make you whole again up to a quarter of a million bucks.

On the other hand, other money transfer services like PayPal are not insured by the government. Customer balances are not placed in FDIC insured banks. This means that those who keep balances there could theoretically lose the entire amount in the unlikely event that the company and eBay go under. PayPal does provide protection from customer losses related to fraud. Interestingly, PayPal balances were originally insured by the FDIC until 2012 until a law in California made it more expensive for the company to offer this protection.

Google's decision to hold customer balances in FDIC insured banks probably won't end up in a large number of new accounts for Google Wallet since most don't really place a large amount of money into the platform. Still, it is nice for Google Wallet users to know that there is a level of protection for whatever money they have stored in their virtual leather bound money holder.

source: Yahoo via Engadget

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8 Comments

1. Mxyzptlk unregistered

I wouldn't put that much money in Google. Nice to be insured by the FDIC.

2. gaming64 unregistered

That of money should go to the bank.

3. Settings

Posts: 2943; Member since: Jul 02, 2014

Can you buy iPhones with Google wallet at the Apple Store?

4. JaneChenLong

Posts: 374; Member since: Mar 18, 2015

Can you buy Nexus phone with Apple iPay at Google Store?

7. Settings

Posts: 2943; Member since: Jul 02, 2014

Where in hell would I find a physical Google store in Asia? Even Google play doesn't offer devices in our "region".

5. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Those money should goes into investment such as stocks that pay dividend.

6. eyeball

Posts: 17; Member since: Mar 14, 2015

Hi, Google wallet has removed credit cards and prepaid cards from loading funds. Here is a quote from Google found at doctorofcredit.com "Thank you for asking about using credit cards in your Google Wallet. You can use your credit cards to tap-and-pay with your Wallet app, for online purchases with your Wallet, and to add funds to your Google Play Balance for shopping on the Google Play Store. We used to enable credit cards to send money through Google Wallet and to top up Wallet Balance, but we discontinued that to protect all our customers (and Google) from suspicious activities often associated with credit cards. Also, banks frequently charge much higher fees for using credit cards than debit cards and bank accounts.To send money and to top up your Wallet Balance, please use your debit card or bank account." What they don't tell you,... Is you have to wait 7 days for the transfer,and can't touch your money inbetween. Read playstore reviews for tons of angry replies.

8. H3Drvr

Posts: 43; Member since: Apr 30, 2013

What?!?! I've been using Google Wallet and Google Wallet Card for at least a year now and after you've completed the initial link to your account (debit/bank), transfers are fairly instant. The biggest issues I've had with GWC is that refunds or reverse/cancelled transactions don't usually show up on your GWC for 3-5 biz days; Then again, this is the same for most credit cards anyway. Also, GWC can't be used in/for foreign transactions. I use GWC 90% of the time and I like the phone notifications whenever a charge is made to my card. I generally keep

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