T-Mobile will be making it easier for users to buy things online and have it show up directly on their wireless bills but the Consumers Union is warning people to watch out because this convenience won’t come with the same types of protections you’d get with a credit card or debit card.
Basically, the Consumers Union is saying that purchases that eventually fall back upon a credit or debit card come with consumer protection guarantees for fraud or merchant mistakes and after reading through T-Mobile’s customer contract, this direct carrier billing option won’t offer the same types of safeguards. Mobile payment services like Google Wallet, Isis and American Express’ Serve platform will come with these consumer-friendly protections.
“Mobile payment products promise a new, convenient way to pay but consumers could end up losing money if something goes wrong with their transaction,” said Michelle Jun, Senior Attorney for Consumers Union, in a prepared statement. “Consumers need to know that they’ll be protected in the event of a billing error or if the goods they order aren’t as promised or if they become victims of fraud. Mobile payment services like the one being launched by T-Mobile could put consumers at risk and fail to provide the protections they deserve.”
I’m not going to try and pick on T-Mobile too much here, as hopefully this was an oversight and it will be amending its contract to handle issues of fraud or merchant mistakes. What this does show is how difficult it is for new mobile payment options to really crop up in the United States. The barriers of entry are actually stunningly high because this involves real people’s money and this encompasses many legal restrictions. That’s why many of the exciting mobile payment services we’re seeing are coming from established payment players like Visa, MasterCard, Visa and PayPal or in partnership with one of these companies.
[Via Consumer Union, photo]