North Carolina Attorney General Josh Stein is joining attorneys general from 17 states and the District of Columbia in calling for stronger protections for consumers who use digital payment apps.
Over half of Americans use digital payment apps like Zelle, Venmo, Apple Cash and Cash App, according to a 2022 Consumer Reports survey.
Stein and other attorneys general say few protections are in place for consumers to get refunds in cases of fraud, misdirected payments or simple errors. Consumer Reports found that 12% of people who used a digital payment app at least once a week have sent a payment to the wrong person and 9% were victims of scams.
The attorneys general want federal protections for consumers in place, like those required of banks, credit unions and other traditional financial institutions when refunds or canceled payments are requested. Customer funds in banks and credit unions are secured by the Federal Deposit Insurance Corporation but digital payment services, which are often attached to bank accounts, are not.
Stein says payment app companies need to be more accountable and operate under stricter regulations.
