If you’re only using Zelle to make payments to someone you know, I don’t see how any of this applies. As far as the scams linked in the article, I understand that some people might be taken in, but really, I think most people would have warning bells over “authorize these payments so we can dispute them.” That seems crazy. I think the article linked to your article also doesn’t explain how the scammer could put pending payments onto someone else’s account. it sounds like her bank account itself was compromised.
I’m skeptical that Zelle is more secure. I’ve read many article about people who had bad Zelle experiences. I’m not suggesting Venmo is any better, but Zelle doesn’t seem exceptionally safe. For one thing, Zelle using ACH directly to bank accounts. Once the transaction occurs, you are out of luck if it wasn’t legit. Whereas if you use Venmo or PayPal with a credit card, you can still dispute the charge with the credit card company.
We own apartments and accept paper checks, Google Pay, Venmo, PayPal, and Zelle.
We prefer electronic payments, and roughly 75% of our tenants pay that way. I believe Zelle is the only one where there’s no delay accessing the funds; the others charge a fee for immediate access.
Also, a couple of the platforms (definitely PayPal) potentially charge the recipient a fee, which can be avoided by correctly instructing the sender not to push the wrong button.
My wife has all our tenants trained to do it correctly and we typically have all our electronic rent collected before the first of the month, while the paper checks might lag a day or two.
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Hi! Clark’s warnings about Zelle has several layers.
I. It’s owned by several of the big monster mega-banks who only have their best interests in mind.
2. The banks automatically attach it to most bank accounts without permission or any opt-in feature, which misleads many customers into thinking it’s “bank approved” or safer than the other payment apps.
3. His biggest issue is that there are no consumer protections. If someone steals money out of your regular bank account, the banks are responsible for replacing your money, if it’s a valid theft claim. If someone steals money out of your account via Zelle, the banks are not liable and will not replace the money although they own the app. This is why they are pushing their customers to use Zelle - no responsibility.”
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