A new bill introduced January 15 in New Jersey criminalizes the failure to return an erroneous P2P payment.
The bill aims to help consumers who accidentally send money to a person, but because of a typo or miscommunication, the money ends up in someone else’s account.
Since most P2P payment systems make the money available immediately to the recipient, unscrupulous users have refused to return funds.
Venmo will try to work with its users to recover erroneously transferred funds and sometimes it has offered refunds to senders if they believed fraud was involved.
“If you don’t hear back from them or need help sending a charge request, contact our support team and we’ll do our best to help. While we cannot cancel the payment for you, if you reach out to us, we can provide any available options.”
Venmo Online Help
With this new bill, New Jersey is trying to give consumers extra help to put pressure on recipients of erroneous funds.
Persons who refuse to refund the money after proper notification may face theft penalties which in New Jersey range from $1,000 fine to jail time.
As Venmo and other similar P2P digital wallets and payment systems become more popular in everyday use, it also brings with it some risks.
This bill does not interfere with the dispute resolution process between an authorized Venmo payment processor such as Braintree. It only covers direct person-to-person payments.
READ MORE: Venmo Now Accepted at Millions of Retailers
What do you think about this consumer protection bill for P2P payments? Please use the comments section below or head over to our Facebook Group for Small Business Sellers and interact with other small business owners.