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Zelle should be avoided for almost every transaction. There is no fraud protection.

vxNsr 4y ago
Not really, there is as much fraud protection as ACH. If you’re will to make use of direct deposits and ACH transfers, you can use Zelle. Just don’t expect to be handled with kid gloves.
- FireBeyond 4y ago
  No, there really isn't. And the banks themselves say so. https://www.nytimes.com/2022/03/06/business/payments-fraud-zelle-banks.html https://www.nytimes.com/2022/03/06/business/payments-fraud-z... > Zelle’s immediacy has also made it a favorite of fraudsters. Other types of bank transfers or transactions involving payment cards typically take at least a day to clear. But once crooks scare or trick victims into handing over money via Zelle, they can siphon away thousands of dollars in seconds. There’s no way for customers — and in many cases, the banks themselves — to retrieve the money. > The banks are aware of the widespread fraud on Zelle. When Mr. Faunce called Wells Fargo to report the crime, the customer service representative told him, “A lot of people are getting scammed on Zelle this way.” Even Zelle says so: > Zelle® does not offer a protection program for any authorized payments made with Zelle® - for example, if you make a purchase using Zelle®, but you do not receive the item or the item is not as described or as you expected. Source: https://www.zellepay.com/faq/im-unsure-about-using-zelle-pay-someone-i-dont-know-what-should-i-do https://www.zellepay.com/faq/im-unsure-about-using-zelle-pay...
  - proxyon 4y ago
    How is this any different from ACH or wire? What protection is there if you wire your money to a Nigerian prince vs. if you Zelle it to a Nigerian prince?
    - yellow_postit 4y ago
      None with Zelle and Wires. But there is a tiny window of protection/reversal offered by ACH.
  - eclipticplane 4y ago
    Can't reply to the child comment https://news.ycombinator.com/item?id=31773886 https://news.ycombinator.com/item?id=31773886 from @proxyon but banks can reverse ACH payments. There are still rules for what can be reversed. Zelle intentionally has no reversal mechanism.
    - macintux 4y ago
      In case you weren't aware, you can always(?) click on the relative timestamp associated with a comment to bring up a reply box, even if on a deeply nested comment the reply link isn't available.
JCharante 4y ago
So it's as good as cash? If I sell my old TV in the parking lot of a Walmart, I don't want somebody to charge back the transaction.
jaywalk 4y ago
Don't use Zelle to pay someone you either 1) don't know or 2) isn't handing you what you purchased at the same time.

Not really, there is as much fraud protection as ACH. If you’re will to make use of direct deposits and ACH transfers, you can use Zelle. Just don’t expect to be handled with kid gloves.

FireBeyond 4y ago
No, there really isn't. And the banks themselves say so. https://www.nytimes.com/2022/03/06/business/payments-fraud-zelle-banks.html https://www.nytimes.com/2022/03/06/business/payments-fraud-z... > Zelle’s immediacy has also made it a favorite of fraudsters. Other types of bank transfers or transactions involving payment cards typically take at least a day to clear. But once crooks scare or trick victims into handing over money via Zelle, they can siphon away thousands of dollars in seconds. There’s no way for customers — and in many cases, the banks themselves — to retrieve the money. > The banks are aware of the widespread fraud on Zelle. When Mr. Faunce called Wells Fargo to report the crime, the customer service representative told him, “A lot of people are getting scammed on Zelle this way.” Even Zelle says so: > Zelle® does not offer a protection program for any authorized payments made with Zelle® - for example, if you make a purchase using Zelle®, but you do not receive the item or the item is not as described or as you expected. Source: https://www.zellepay.com/faq/im-unsure-about-using-zelle-pay-someone-i-dont-know-what-should-i-do https://www.zellepay.com/faq/im-unsure-about-using-zelle-pay...
- proxyon 4y ago
  How is this any different from ACH or wire? What protection is there if you wire your money to a Nigerian prince vs. if you Zelle it to a Nigerian prince?
  - yellow_postit 4y ago
    None with Zelle and Wires. But there is a tiny window of protection/reversal offered by ACH.
- eclipticplane 4y ago
  Can't reply to the child comment https://news.ycombinator.com/item?id=31773886 https://news.ycombinator.com/item?id=31773886 from @proxyon but banks can reverse ACH payments. There are still rules for what can be reversed. Zelle intentionally has no reversal mechanism.
  - macintux 4y ago
    In case you weren't aware, you can always(?) click on the relative timestamp associated with a comment to bring up a reply box, even if on a deeply nested comment the reply link isn't available.

JCharante 4y ago

So it's as good as cash? If I sell my old TV in the parking lot of a Walmart, I don't want somebody to charge back the transaction.

jaywalk 4y ago

Don't use Zelle to pay someone you either 1) don't know or 2) isn't handing you what you purchased at the same time.