Trenton, NJ – The Senate Commerce Committee moved forward with a bill sponsored by Senator John McKeon to safeguard users of person-to-person electronic payment systems by penalizing the failure to return payments sent in error after the appropriate notification.
Senator McKeon pointed out the increasing number of accidental transactions due to the popularity of apps like Venmo and Cashapp, underscoring the challenges users and authorities face in recovering funds from mistaken transactions. The legislation, S-1125, outlines that failing to return an erroneous electronic payment to the sender post-notification would constitute theft.
Individuals receiving such payments must initiate the return within 30 days of being informed of the error.
The bill garnered approval from the committee in a unanimous 5-0 vote, signaling a step towards enhancing consumer protection within these electronic payment platforms.
