WASHINGTON — If you use digital payment apps, expect to see changes soon. This comes after a growing number of customers complained about fraud using digital wallets.
Channel 2’s Washington Bureau Reporter Nicole D’Antonio has learned that digital payment apps handle more than 50 million transactions a year.
Now the Consumer Financial Protection Bureau says they are taking steps to prevent fraud and illegal transactions.
This will impact payment services including Apple, Google, and Amazon, as well as PayPal and Zelle.
The rule will require these companies to follow federal law, just like large banks and credit unions that are already supervised by the Consumer Financial Protection Bureau.
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That means there will be more protections for customers to dispute transactions and opt out of data sharing.
“This rule allows the CFPB to make sure that payment companies are actually following the law,” consumer campaign director Mike Litt said.
The changes come after a growing number of complaints from customers who experienced fraud and said they were not always protected.
Experts recommend only using these apps with friends and others you trust.
Another tip: beware of phishing or unexpected requests.
“If you have money, that’s sitting in your app account, that money might not actually be federally insured so it’s a good idea to deposit that as soon as you can directly into your bank or credit union account,” Litt said.
If you see a problem with one of these apps, you should report it to the Consumer Financial Protection Bureau.