JPMorgan, Other Banks Discuss Refunding Duped Zelle Customers: Report

  • JP Morgan Chase & Co JPMWells Fargo & Co WFC, and Bank Of America Corp BAC are among the banks in advanced discussions to create a playbook for refunding customers and each other for illegitimate transfers.
  • The banks aimed to boost security and consumer trust in Zelle, the peer-to-peer payment system jointly owned by a consortium of banks, the Wall Street Journal reports.
  • Zelle recorded 1.8 billion transactions in 2021, totaling $490 billion, more than double pre-pandemic levels.
  • The report cited Zelle operator Early Warning Services LLC, saying fraud and scam claims comprised less than 0.1% of payments.
  • Zelle’s owners include Capital One Financial Corp COFPNC Financial Services Group, Inc PNCTruist Financial Corp TFC, and U.S. Bancorp USB.
  • The new rules under discussion would not extend to customers seeking refunds for goods or services they say they did not receive or for people whose errant payments resulted from typos.
  • The new refund rules could kick in as soon as early next year. 
  • The banks ran tests to ensure the changes would not result in a fresh surge of scams.
  • If the new rules kick in, financial institutions participating in Zelle would have to agree to them or risk being kicked out of the network.
  •  More than 1,800 financial institutions allow their customers to send and receive money through Zelle.
  • Price Action: JPM shares traded lower by 1.43% at $134.79 on the last check Monday.
  • Photo Via Company
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