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Bill criminalizing failure to return erroneous peer‑to‑peer payments advanced with amendments after mixed comments
Summary
A2946, which would criminalize failure to return erroneous person‑to‑person electronic payments and clarifies payment‑network definitions, was released with committee amendments after members raised concerns about small businesses and platform access to human support.
The Judiciary Committee advanced A2946 with committee amendments after members debated whether criminal penalties are the right tool to address mistaken or fraudulent person‑to‑person electronic payments.
Clerk read the bill, which would criminalize failure to return erroneous payments following proper notification and includes an amendment clarifying that clearance and settlement systems (including payment card networks) are not considered payment processors and establishing a 180‑day notice window that creates a permissive inference the recipient knew the payment was erroneous if notice was not given.
Witnesses and members discussed consumer confusion on different platforms. A lawmaker described recent problems with both Venmo and Zelle, saying "I can't get out of my Venmo account anymore" and urging consideration of mechanisms to make customer support or tiered protections available for large transfers. Another member cautioned that criminal penalties could disproportionately hurt small business owners who review accounts and may miss errors, and said she would abstain from the committee vote until those concerns are addressed.
The committee approved a motion to release A2946 with amendments. Roll‑call voting recorded in the transcript shows at least one abstention; the committee released the bill to continue through the legislative process with the agreed amendments.
