Exactly what title says, why is there no way to recoup zelle definitely or wire transfer(maybe?) but if banks send money to wrong person there are severe penalties for not returning.
In: 650
Zelle is like the post office. If you send someone a letter with cash, but you write the wrong address, it isn’t the responsibility of the post office to get it back for you.
Someone convincing you to send them cash to an account is not the same thing as an employee fat fingering an account number and depositing to the wrong account.
You can cancel before they accepted it and you’ll be okay but otherwise SOL. In this kind situation Zelle functioned just as intended so from their perspective they did not make the error, you did.
Best to get in the habit of sending a low value test transaction and getting confirmation of receipt prior to sending the big $$$.
If the bank makes a mistake, they’ll ask for the money to be returned.
If you make a mistake (doesn’t matter on zelle, venmo, PayPal, wire transfers, or direct transfers in other countries), you have to ask the person themselves to give you the money back, sue them, or call the police on them if you have a case. The bank will not help you get the money back because they don’t know if you made a mistake or you’re trying to scam the other person.
If someone transfers money to you from a stolen account, it will most like cause a criminal case and the money will be returned. Even if the money was used to buy something from you that you gave away. Again, it’s true with all transfers.
[deleted]
If the bank makes a mistake, they’ll ask for the money to be returned.
If you make a mistake (doesn’t matter on zelle, venmo, PayPal, wire transfers, or direct transfers in other countries), you have to ask the person themselves to give you the money back, sue them, or call the police on them if you have a case. The bank will not help you get the money back because they don’t know if you made a mistake or you’re trying to scam the other person.
If someone transfers money to you from a stolen account, it will most like cause a criminal case and the money will be returned. Even if the money was used to buy something from you that you gave away. Again, it’s true with all transfers.
I’m no banker but my friend is. She has been over the ACH (and or) wire departments for several banks. Essentially, there are a shit ton of rules, regulations, laws, and levels of compliances banks are REQUIRED to follow for ACH and wires in order to ensure that ACH and wires are reliable and dependable. They shore up what’s been sent and received everyday by like 2-4 PM. It’s mandatory, and they have to send a report of that information to somebody (I don’t know if it’s the Fed reserve or the government). Whoever gets it relies on it, and the next person relies on it.
They can’t do that if you get to take it back (or change your mind). In that case it’s not reliable. Yeah, the app/your account says Johnny sent you $5 via Zelle, but tomorrow Johnny can take back his ($5) so now the reports are wrong, the decisions those reports are based on are wrong, and you don’t accept Zelle anymore because you never know whether you can rely on the fact that the money has actually been paid.
So, its treated like cash. Johnny pays you $5 cash, Johnny got to pry that $5 out of your cold dead hands, take you to court, or take it by force. All of which are extremely unlikely and even if it does happen takes time and process. We can rely on the fact that he gave you $5.
Similar issue came up in my work today. Somebody wanted to pay a debt with a credit card. For reasons, we can’t accept that. He can pay us in cash or a postal money order, certified check, or he can wire it to us. That way we know he can’t take it back. If he pays with a credit card, we could settle the debt, he could dispute the charge and now we owe the person HE owes the debt to. ACH and wires are meant to prevent this type of thing. I feel confident as a business owner that imma get my money; not so much with a credit card.
These are the agreements you sign when you use a bank account and Zelle. You agree that banks can fix their errors. You also agree that Zelle payments sent by you are final and will not be reversed.
The technology to reverse Zelle payments exists, and is used in cases of fraud. But their user agreement says they will not use that technology if you make a mistake.
These are the agreements you sign when you use a bank account and Zelle. You agree that banks can fix their errors. You also agree that Zelle payments sent by you are final and will not be reversed.
The technology to reverse Zelle payments exists, and is used in cases of fraud. But their user agreement says they will not use that technology if you make a mistake.
Latest Answers