FTC Report On Mobile Payments

The Federal Trade Commission issued a report and recommendations for mobile payments called Paper, Plastic... or Mobile? An FTC Workshop on Mobile Payments, which is based on a workshop held by the Commission in 2012 to examine these issues.

The report, while noting that mobile payments can provide innovative and convenient options for consumers, highlights three major areas of potential concern for consumers. The first concern is how consumers can resolve disputes in the case of fraudulent payments or unauthorized charges. Many mobile payment platforms (such as those using Near Field Communications (NFC) technologies, mobile apps and online checkout wallets) allow consumers to choose among several different funding sources for payment, such as a credit card, debit card, bank account or mobile phone account. Consumers may not recognize that their protections against fraudulent or unauthorized transactions can vary greatly depending on the underlying funding source.