Will Zelle Refund Your Money if You Get Scammed?

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When you want to easily transfer money from your bank account to a friend, business or other financial institution you want to make sure your funds are protected. Sending money through a trusted payment app shouldn’t come with the threat of fraud and scams, but in this modern world, you need to be aware of the difference between authorized payments and unauthorized transactions and what types of scams are out there in general. 

Read: What To Do If You Owe Back Taxes to the IRS

Can Zelle Refund Money If Scammed?

Though Zelle payments have many ways of protecting consumers and early warning services in place, Zelle scams can still occur. If you do fall victim to a scam, Zelle does not offer purchase protection and cannot assist you with getting your money back. Here are some key takeaways:

• When you send money through Zelle, it is like sending cash so it is hard to get money back once sent to a different bank or credit union account.
• Though you can contact your bank if you feel like you have been scammed and they may be able to help you, Zelle itself will not reimburse you for any fraudulent payment.
• Once you authorize a payment through Zelle you cannot cancel it as it transfers into the recipient’s bank account almost immediately. 

What To Do If You Get Scammed On Zelle

As Zelle cannot help you with getting your money back once you have authorized a payment there are still some things you can do to either get reimbursed or help prevent the same fraud in the future. Here are six things you can try if you feel you’ve been scammed on Zelle:

1. Attempt to cancel payment
2. Report the scam to Zelle
3. Fill a claim out with the Federal Trade Commission
4. Freeze your credit card
5. Ask for a refund from the recipient
6. Report fraud to your bank to get a chargeback 

1. Attempt To Cancel Payment 

Though Zelle payment transfers can happen within minutes, if you recognize you shouldn’t have sent the money straight away you might be able to cancel the payment. If the person you sent money to is not enrolled in Zelle, this will increase your chances of being able to cancel as those transactions take longer. However, if the money has already been sent to another account, you will not be able to cancel the payment. 

2. Report the Scam To Zelle

Zelle won’t be able to necessarily get your money back or reimburse you for the transaction you authorize, even if it is a scam, but this doesn’t mean you should do nothing. By reporting the scam to Zelle, you can help them better identify scams and scam artists alike. You can also block a Zelle user so they won’t be able to request money from you again through the app. 

3. Fill a Claim Out With the Federal Trade Commission 

Fortunately, certain fraudulent Zelle transactions can be refunded so don’t lose hope. Regulation E, also known as the Electronic Funds Transfer Act, allows you to file a claim with the FTC. This claim can be filed for reasons such as it was an unauthorized transfer, the transfer to or from your account was incorrect or a miscalculation was made by your bank or financial institution. 

4. Freeze Your Credit Card

As Zelle is likely not able to help with reimbursing customers, you might be able to stop the payment directly through the credit card company. You can freeze your credit card in the hope it will stop payment from being transferred. This is a more extreme option as it will stop all payments from that card and you won’t be able to use it in the meantime, but it could nip fraudulent activity in the bud. 

5. Ask For a Refund From the Recipient 

If it is a true scam artist, asking them for a refund may be a long shot, however, it might not hurt to ask, as mistakes can happen. There is also the notion that they might not want to get in trouble with Zelle, so they may just refund you to avoid further headaches. Either way, you get your money back and can rest a little easier. 

6. Report the Fraud to Your Bank To Get a Chargeback

The bank, credit union or other financial institution that you use Zelle through may be able to help you a bit more than Zelle can. If you report a fraudulent charge on your account, you could get a chargeback straight from the bank itself instead of having to deal with Zelle for a refund. 

Final Take To GO 

If you fear you may have fallen victim to a Zelle scam, don’t panic. Remember that even if Zelle cannot necessarily get you your money back, there are other ways to get reimbursed or help prevent similiar fraudulent behavior in the future. When you are about to send money via Zelle, make sure you trust the recipient.

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