Zelle, the Banks’ Answer to Venmo, Proves Vulnerable to Fraud
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Re: Zelle, the Banks’ Answer to Venmo, Proves Vulnerable to Fraud
#2Previously on HN: https://news.ycombinator.com/item?id=16395698
Re: Zelle, the Banks’ Answer to Venmo, Proves Vulnerable to Fraud
#3Zelle is a piece of dogshit. Venmo is PayPal based so it is dogshit wrapped in catshit.
Re: Zelle, the Banks’ Answer to Venmo, Proves Vulnerable to Fraud
#4If you ever send money to A and it actually goes to B, and for some reason the bank doesn't fix that the first time you get in touch with them, I recommend getting off the phone and escalating to an on-dead-tree letter:
Dear BigBank Legal Department:
This is written notice under Regulation E that BigBank has processed the following electronic transaction in error:
(Brief recitation of transaction details.)
You are required to investigate this matter within 10 business days of your receipt of this letter and provide me written confirmation of the results of your investigation. My desired resolution is a deposit of $XXX into my checking account with last four digits 1234.
Regards,
$YOU
You really want BigBank to put into writing "We think we've satisfied our obligation to you because you told us to send it to your mother and instead we sent it to somebody in Cincinatti; that was totes reasonable." Or, rather, you want a lawyer at BigBank to say "Eff no I am not putting that in writing; pay him $300 and charge it off to operational losses, that's what that budget is for."
Re: Zelle, the Banks’ Answer to Venmo, Proves Vulnerable to Fraud
#5If you ever send money to A and it actually goes to B, and for some reason the bank doesn't fix that the first time you get in touch with them, I recommend getting off the phone and escalating to an on-dead-tree letter: Dear BigBank Legal Department: This is written notice under Regulation E that BigBank has processed the following electronic transaction in error: (Brief recitation of transaction details.) You are re…
Please elaborate, what is regulation E?
Re: Zelle, the Banks’ Answer to Venmo, Proves Vulnerable to Fraud
#6If you ever send money to A and it actually goes to B, and for some reason the bank doesn't fix that the first time you get in touch with them, I recommend getting off the phone and escalating to an on-dead-tree letter: Dear BigBank Legal Department: This is written notice under Regulation E that BigBank has processed the following electronic transaction in error: (Brief recitation of transaction details.) You are re…
> This is written notice under Regulation E that BigBank has processed the following electronic transaction in error
Do we know if Reg E [1] applies to Zelle? A safer bet is likely writing to your state financial services regulator.
[1] https://www.fdic.gov/regulations/laws/rules/6500-500.html#fd...
Re: Zelle, the Banks’ Answer to Venmo, Proves Vulnerable to Fraud
#7If you ever send money to A and it actually goes to B, and for some reason the bank doesn't fix that the first time you get in touch with them, I recommend getting off the phone and escalating to an on-dead-tree letter: Dear BigBank Legal Department: This is written notice under Regulation E that BigBank has processed the following electronic transaction in error: (Brief recitation of transaction details.) You are re…
> This is written notice under Regulation E that BigBank has processed the following electronic transaction in error Do we know if Reg E [1] applies to Zelle? A safer bet is likely writing to your state financial services regulator. [1] https://www.fdic.gov/regulations/laws/rules/6500-500.html#fd...
I work at a financial institution with some professionals who will get very cross with me if I apply the requirements of a statute to the facts of a particular banking product. Let me just observe that, separate from the legal issue, it is unlikely as a matter of business practice that any lawyer working for a financial institution would commit that position to paper.
Re: Zelle, the Banks’ Answer to Venmo, Proves Vulnerable to Fraud
#8Early Warning is owned by a consortium of major banks. Supposedly during development of the apps, if any one bank wanted a feature the team basically had to implement it. Allegedly the team wasn’t allowed to push out the ship date or refuse new features, their only lever was adding more resource.
Any wonder why it shipped months late and with the most horrific reviews I’ve ever seen for a mobile app? My guess is fixing problems going forward won’t be an easier.
Re: Zelle, the Banks’ Answer to Venmo, Proves Vulnerable to Fraud
#9If you ever send money to A and it actually goes to B, and for some reason the bank doesn't fix that the first time you get in touch with them, I recommend getting off the phone and escalating to an on-dead-tree letter: Dear BigBank Legal Department: This is written notice under Regulation E that BigBank has processed the following electronic transaction in error: (Brief recitation of transaction details.) You are re…
Please elaborate, what is regulation E?
You've asked a question which is approximately "What is a garbage collector?" in terms of depth.
Here's the short answer: it's a regulation about electronic funds transfers that US financial institutions, including every bank which offers Zelle, are obligated to uphold.
There is a longer version of this answer; your life will probably not be materially improved by knowing it, but you can Google and read at your leisure.
Re: Zelle, the Banks’ Answer to Venmo, Proves Vulnerable to Fraud
#10Is any of this actually new or unique? If you mail an old school check to the wrong address and never get your concert tickets, do you get your money back?