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
Best to get in the habit of sending a low value test transaction and getting confirmation of receipt prior to sending the big $$$.
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The bank has a claim against you for the mistakenly sent funds under a “constructive trust” theory. In the case of you sending funds to the wrong person on Zelle, you have the same claim. The bank probably also has contractual rights.
The difference is enforcing the claim. Instead of having to file a lawsuit, the bank can often just reverse the transaction.
As others have said, there are different payment rails each with differing rules. For wire transfers, once that money is gone, it’s gone. The originating institution can issue a recall, but that’s really just a request and the receiver has no obligation to give that back. For ACH, the originator has 5 days to reverse a transaction. Provided it’s for one of the allowed reasons, sending to wrong account is one of them, the receiver is obligated to give back the money. These are NACHA rules. Zelle isn’t a new payment rail, but really just an ACH transfer. You should be as the originator allowed to reverse the transaction if you sent to the wrong party.
Edit: I just read Zelle’s TOS and looks like they state that you are SOL if you send to the wrong person. That is a choice they are making. The originating institution 100% has the right per NACHA guidelines to reverse that transaction if sent to the wrong account.
If Zelle erroneously sent money to the wrong person, there’s a good chance they’d be responsible for returning it. If you send money through Zelle to the wrong person, it’s on you.
As others have said, there are different payment rails each with differing rules. For wire transfers, once that money is gone, it’s gone. The originating institution can issue a recall, but that’s really just a request and the receiver has no obligation to give that back. For ACH, the originator has 5 days to reverse a transaction. Provided it’s for one of the allowed reasons, sending to wrong account is one of them, the receiver is obligated to give back the money. These are NACHA rules. Zelle isn’t a new payment rail, but really just an ACH transfer. You should be as the originator allowed to reverse the transaction if you sent to the wrong party.
Edit: I just read Zelle’s TOS and looks like they state that you are SOL if you send to the wrong person. That is a choice they are making. The originating institution 100% has the right per NACHA guidelines to reverse that transaction if sent to the wrong account.
There is no difference. If you Zelle someone money and they should know it’s a mistake, they cannot spend it, and you can sue them to get it back.
The “difference” here is that it’s not *Zelle’s* problem that you sent money to the wrong person. You have to go and contact that person yourself, just as the bank does. There’s also the fact that you’re probably not sending people enough money that it would make sense to spend the time, money, and effort to try to get it back.
The only reason Zelle is free is because they don’t have to spend a bunch of money on overhead to deal with fraud cases.
If people can’t learn some damn sense and keep fucking this up we’re going to be stuck with 48-Hour wait periods and transaction fees again.
There is no difference. If you Zelle someone money and they should know it’s a mistake, they cannot spend it, and you can sue them to get it back.
The “difference” here is that it’s not *Zelle’s* problem that you sent money to the wrong person. You have to go and contact that person yourself, just as the bank does. There’s also the fact that you’re probably not sending people enough money that it would make sense to spend the time, money, and effort to try to get it back.
If Zelle erroneously sent money to the wrong person, there’s a good chance they’d be responsible for returning it. If you send money through Zelle to the wrong person, it’s on you.
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