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> The catch is that the bank, like all the others that use Zelle, only considers transactions fraudulent if the customer did not authorize them. How can the ba
by 21 9y ago
> The catch is that the bank, like all the others that use Zelle, only considers transactions fraudulent if the customer did not authorize them.
How can the banks be so short-sighted? Soon a lot of people will hear that Zelle is not secure and they will avoid using it.
- metei 9y agoLots of banks and Credit Unions have implemented Zelle in app, its the last gasp they have to compete against Venmo. The only upside to Zelle is essentially offering instant transfers for free, where Venmo makes you wait a few days or pay $0.25.
- morogop 9y agoThe upside is that it's instantly in the target bank account, not a week away as it is with Venmo. I use Venmo to pay bar tabs and event tickets. I use Zelle to send my wife money for the mortgage.
- dawhizkid 9y agoThat’s a pretty huge upside IMO... It’s actually even faster than instant deposit on Venmo because the funds appear to settle instantly (not just transferred instantly)
- metei 9y agoIt is, I rather like it. There is a 1 business day delay for your first transaction fyi, which is a reasonable fraud deterrent. All transactions thereafter between Zelle members are instant and free though!
- magduf 9y agoIt is pretty huge, and as long as you're using it with people you actually trust, it should be safe.
- gwbas1c 9y agoBecause the banks are trying to do something to replace cash. No one will ever find me if I pay for a fraudulent transaction with cash! They could probably use some kind of reputation system to warn that a transaction may be fraudulent... But let's get real for a minute. You need to take some responsibility when you're making a purchase to make sure that the other party is going to come through. When it comes to concert tickets, doesn't Ticketmaster already offer services to allow people to transact in tickets? Edit: One thing the banks could do, is differentiate between a person-to-person transfer, and a merchant requesting payment. There could be some kind of fraud restitution system when the payment is sent via a Merchant's request for payment. If someone asks you to send money without the normal merchant system then you know that it could be a scam. The banks could always warn that the person to person payment system is like putting cash in an envelope and cannot be refunded if there is fraud.
- 21 9y agoThe article gave the example of a guy sending money to his mother's phone number, but somehow someone else registered that number and the bank refused initially to refund him because the transaction was authorized by him.
- closeparen 9y agoFraud protection and dispute resolution are what you pay the credit card interchange fee for. What, did you think they were suddenly going to give away that service for free?