Payment App Fraud: Who’s Responsible?

As technology has continued to develop, digital payment methods have become more and more prevalent. Regulation E, which addresses how to handle unauthorized transactions, hasn’t necessarily kept up. That creates a lot of confusion! Over the last year or so, the CFPB issued EFT FAQs as a way to provide guidance and clear up common scenarios like this.

Jerod explains more in the video.


Regulation E Resources!

Video Highlights:

  • When it comes to payment app fraud, the CFPB chimed in December 2021 with a loophole that may exempt banks from certain unauthorized transactions under Reg E.
  • Zelle transactions (third-party services), debit card transactions and ACHs must be dealt with according to Reg E regulations; however, there is criteria that must be met for the loophole to apply.
  • Due to the influx of complaints about third-party payment apps customers not getting restitution or refunds, the CFPB is looking for ways to rectify this.

Published
2023/08/08
Jerod Moyer

Jerod Moyer

Jerod is the leader of Banker’s Compliance Consulting’s training productions. He is a nationally recognized speaker. Whether it’s a conference, seminar, school, webinar or luncheon, it’s easy to stay engaged when he presents due to the amount of passion and energy he brings to each and every compliance topic. Jerod has spoken on behalf of the American Bankers’ Association, BankersOnline, many state banking associations, private compliance groups and financial institutions. He is a Certified Regulatory Compliance Manager (CRCM) and BankersOnline Guru. Jerod likes to spend his time (between reading regulations and producing compliance training!) relaxing at the lake with his wife and three children, following their activities or engaged in something sports-related!

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