Customer okays purchase but doesn't get the goods

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Question:

A customer authorized a transaction with Apple Cash but says they didn't receive anything. Since this transaction was authorized by the customer, is this covered under Reg E's error claims rules?. The customer was attempting to purchase something on Facebook marketplace but never got the item.

Answer:

Reg E 1005.11(a) defines what is considered an EFT error. The transaction was not unauthorized, nor was it incorrect as the customer was charged the correct amount. Non-receipt of goods is not on the list of errors in 1005.11(a). Sending money via P2P to purchase something online is no different than handing a stranger cash. There are no protections in this case as you can't file a chargeback against Apple Cash. The customer received the service they paid Apple Cash for. Apple Cash sent money to the very fraudsters the customer asked it to.

This is a case of buyer beware and never send P2P payments to purchase anything online.