Consumer complaint received 2021-03-03
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Confusing or missing disclosures — 
Company: Google Compare Credit Cards Inc. (MD)

Summary : For the " new '' Google Pay app, the description of fees states that there is a XXXX  % fee for withdrawing funds using a debit card. It says if you link your bank account, you can transfer funds to it without paying a fee. However, a critical fact is hidden. To link your bank account, you have to agree to the terms of use of a third party service and provide the login credentials ( username and password ) for your bank account. This violates good security practices and infringes on the privacy of users. Most other similar services require only the bank 's routing number and your account number. 


Narrative : I had been a satisfied user of the old Google Pay system. I had read that Google was moving to a smartphone-app-only new system. In this system, the fees would be changed such that there would now be a fee to withdraw money using your debit card. However, to avoid paying a fee, a user could link their bank account and receive their funds a few days after a transfer out is initiated. 

https : XXXX : XXXX I was owed some money, and I asked them to send it to me by Google Pay. They opted to use the new Google Pay app, and invited me to join them on the new app. I figured it would be fine to go ahead and make the switch to the new system. I downloaded the new app, and they transferred the money to me in it. 

To withdraw the money without a fee, I had to link a bank account. However, to link a bank account, I had to use a third party service called " XXXX '' and agree to XXXX 's separate terms of service. I had no idea this would be necessary to link a bank account. Worse, XXXX required that I give them my username and password. Sharing a password with a third party is an obvious violation of computer security principles. It is also likely a violation of my terms of service agreement with my bank. I refer the reader to the following discussion on XXXX for further information on the problems with XXXX XXXX practices. 

XXXX XXXX XXXXXXXX : XXXX It was my intention to provide Google Pay with my bank 's routing number and my personal checking account number. Every other financial service I have used has required only that information to complete an ACH transfer. While disclosing my bank account number is a risk, disclosing my login credentials is a significantly greater risk. With login credentials, a malevolent actor could change my password to lock me out of my account. Additionally, they could alter contact information, such as the phone number and e-mail address associated with the account. This would make it almost impossible for my bank to notify me of suspicious activity on my account. 

Nowhere in Google Pay 's Terms of Service is XXXX mentioned at all. Nowhere does it mention that I must supply the login credentials to my bank. ( Ironically, Google Pay 's Terms of Service instruct me to " not share your account details or password with anyone else. '' ) https : XXXX : XXXX XXXX & XXXXXX/XX/XXXX XXXX XXXX XXXX XXXX XXXX I contend that Google Pay hid important information from me. While it may be true that there is no pecuniary fee to linking a bank account, there is an abnormally high cost in terms of security and privacy that Google did not disclose. If I had known about Google 's relationship with XXXX beforehand, I would have never agreed to use the app, and I would have had the money owed to me sent by other means. 

Thus, there are two issues : 1. Google Pay did not disclose that usage of a third party service would be necessary to link a bank account, nor that one would have to agree to the third party 's terms of service. This is not documented in the Google Pay Terms of Service to which I agreed, nor is it documented on the webpage regarding the transfer of money out of Google Pay.

2. To link a bank account in Google Pay, you are required to supply your bank login credentials, which constitutes a major security and privacy risk. For me, it is also a unique security and privacy risk. Nineteen institutions currently have my routing and checking account numbers. Only Google Pay requires the password to my bank account. 

I have communicated these issues to Google Pay 's support team. I have offered two means of resolution : reimburse me for the XXXX % fee I will pay to do a debit card transfer or mail me the balance of my account as a check. They have refused to do either. 


Details : XX/XX/XXXX I agreed to the Terms of Service for the new Google Pay app. 
XXXX XXXXXX/XX/XXXX - My Google Pay account received {$140.00} from a contact. 
XX/XX/XXXX - I submitted my first inquiry to Google Pay Support using a web form. 
I sent six subsequent e-mail messages to Google Pay Support, each garnering a response. 
XX/XX/XXXX - I received the final reply from Google Pay Support.