PLEASE READ Members Shall NOT Use Zelle for Transactions -- Protect Yourself

[Forum Boss]

First, I need to be 100% Clear -- Use of PayPal Friends and Family or Venmo Friends and Family (F&F) is absolutely forbidden on this Forum. As a seller, if you demand F&F, you risk having your membership permanently banned, and your IPs blocked.

For items other than guns, actions, and ammo, you are allowed to use PayPal Goods and Services with FEES. This provides buyer protection.

OK, moving on...

ZELLE is NOT Allowed for Sales Payments HERE
We are seeing that some sellers want to use Zelle for electronic payments. We do NOT allow this, and the reason is that Zelle is incredibly dangerous, and offers absolutely no buyer protection. Zelle is worse than most payment systems because it can allow a scammer to have direct access to your bank accounts. Zelle has been the object of a massive lawsuit, and it is projected that Zelle frauds will exceed $1.2 Billion this year. People have lost their entire life savings through Zelle scams.

Official Zelle Risk Analysis (from Google AI):

While Zelle is a convenient and widely used peer-to-peer payment platform, it's important to be aware of the risks associated with using it for transactions, especially when dealing with unfamiliar individuals or businesses.
Key Risks of using Zelle:

• Scams and Fraud: Zelle has become a popular platform for scammers due to its real-time, irreversible payment system. Scammers can employ various tactics to trick users into sending them money, making it difficult to recover the funds once sent.
  • Common scam types: Impersonation scams (impersonating friends, family, or organizations), fake sales, rental scams, phishing, overpayment scams, and more.
• Irreversible Transactions: Once you authorize a payment and the recipient is enrolled, the money is sent directly to their bank account and cannot be reversed. This "cash-like" nature of Zelle payments is a primary reason why scammers favor the platform.
• Limited Fraud Protection: Zelle itself does not offer purchase protection, unlike some other payment services like PayPal. This means that if you use Zelle for a transaction and don't receive the goods or services as expected, you may have no recourse through Zelle to recover your money.
• Difficulty Recovering Scammed Funds: While you can report a scam to your bank or Zelle, recovering your money can be challenging, especially if you were tricked into authorizing the payment. Although there are legal protections for unauthorized transactions (e.g., account takeovers), payments you willingly initiated, even if under false pretenses, may not be covered by standard bank policies.
• Reliance on Bank Policies: The extent to which you may be reimbursed for losses due to scams can depend on your specific bank's policies and interpretation of regulations like the Electronic Fund Transfer Act (EFTA).

How to Stay Safe:

• Only Send Money to People You Know and Trust: This is the most crucial tip.
• Verify Recipient Information: Double-check the recipient's phone number or email address before sending money.
• Be Skeptical of Urgent Requests: Scammers often create a sense of urgency to pressure you into making a quick payment.
• Never Share Sensitive Information: Never share your Zelle login credentials, passwords, or one-time passcodes.
• Use Two-Factor Authentication: This adds an extra layer of security to your account.
• Be Cautious of Transactions with Unfamiliar Individuals or Businesses: Consider alternative payment methods that offer more protection for purchases.
• Stay Informed about Current Scams: Knowing how scammers operate can help you recognize and avoid their tactics.

By being aware of these risks and taking necessary precautions, you can use Zelle more safely and effectively. Remember to contact your bank or credit union immediately if you suspect you've been a victim of a scam.

See more information HERE: Zelle Risk Analysis from Security.org

 

[Forum Boss]

Again, I want to repeat, that we do NOT allow Zelle to be used here because of the massive vulnerability of the Zelle system. In fact, the Zelle phone App was closed in April 2025 because of massive fraud. So, if you are a Classifieds shopper in the Forum and the seller demands payment by Zelle, say "NO" and notify Forum Boss.

Here is additional analysis of Zelle Risks from Security.org:




Is There a Risk to Using Zelle?
While Zelle is convenient, it has limitations. One of the biggest risks is that it doesn’t offer purchase protection. The company’s website emphasizes that the service should only be used to transfer money between friends, family, and people you trust. This means that if you use Zelle for a transaction with someone you don’t know well, you may not have recourse if something goes wrong. That’s unlike marketplaces, like AliExpress, which offer buyer protections. These buyer protections are one of the reasons we consider AliExpress safe.

The main reason is that once you hit that transfer button, you can’t reverse it. That’s why the company doesn’t recommend using Zelle to make purchases on eBay or Facebook Marketplace in case you don’t receive the product or it’s not what you expected. Also, be on the lookout for chatbot scams as well as phishing text messages when using peer-to-peer marketplaces like eBay and Facebook Marketplace.

Can You Get Scammed on Zelle?
Unfortunately, several types of Zelle scams are in operation today, and they’re becoming increasingly sophisticated. If you’re already a user, it’s crucial to be aware of these scams and know how to avoid them. Here are some common ones to watch out for.

How to Protect Yourself When Using Zelle
Any type of online transaction comes with risks. In addition to staying alert and vigilant, follow these tips:

Only Send Money to Trusted Contacts: Zelle recommends transferring funds to people you know and trust. Don’t use the platform to purchase items on marketplaces from individuals you’ve never done business with.
Always Verify Recipient Information: Double-check you’re sending money to the right person before you hit the submit button. It’s almost impossible to reverse a transaction, and having a conversation with the person you accidentally made richer is never fun.
Stay Informed on Scams: If you see a news article or social media post about Zelle, it’s important to take note. You might think it will never happen to you, but knowing the latest scams can help you recognize and avoid them. In our opinion, staying informed is one of the best ways to prevent being scammed online.
Look for Telltale Signs: Many scams are easy to spot. They often make spelling or grammar mistakes and have a sense of urgency. If you’re ever in doubt, contact your financial institution to validate that the communication is authentic.

 

[jpjulian]

Believe it that Zelle fraud is very real. Our checking account was hacked earlier this year and it was holy hell getting it fixed. All of our accounts were frozen by the bank, CC, Debit, checks, every account we had with the bank was frozen and we had no access to our money for about 3 weeks. We were lucky to have a 2nd CC with another bank so were able to buy groceries and gas. Stay the absolute hell away from anything to do with Zelle!!!

 

[Forum Boss]

Notably, Chase Bank has now severely restricted the use of Zelle. Chase prohibits use of Zelle if it believes the Zelle interaction comes from social media. And Chase notes there is NO PURCHASE PROTECTION. Check it out:

Chase to Restrict Use of Zelle for Purchases Through Social Media | PYMNTS.com

Chase told customers that it will add some restrictions on their use of the peer-to-peer payment network Zelle with Chase beginning March 23. The changes

www.pymnts.com

Chase told customers that it will add some restrictions on their use of the peer-to-peer payment network Zelle with Chase beginning March 23....

The new provisions include Chase saying that it may delay, decline or block Zelle payments from Chase accounts that originate from contact through social media; may request information from the customer to assess whether a payment has an elevated fraud or scam risk or is an improper payment; and may decline payments or restrict customers’ use of Zelle through Chase if they do not respond truthfully to the bank’s questions.

The service agreement also cautions customers that neither Chase nor Zelle offer purchase protection for claims related to the purchase of goods or services, such as non-receipt, damage or “not as described” claims.

“To help protect you from fraud and scams, the Zelle Service should be used for payments between friends, family and others you trust and should not be used to pay for goods from recipients with whom you are not familiar,” the service agreement said. “The Service is not intended, and should not be used, for the purchase of goods from retailers, merchants, or the like, including on or through social media or social media marketplaces or messaging apps.”

 

[shoot4fun]

Glad I never even opened a Zelle account!

FORUM BOSS: Your Bank may have automatically created a Zelle connection to your bank account and you may have activated it simply by not clicking on a button in an email. Wells Fargo is still aggressively trying to get people to activate Zelle accounts.

Every person should check with their Bank to ensure Zelle is NOT enabled.

 

[Krogen]

Thanks, @Forum Boss ! Not only are you striving to save us from ourselves, you are educating us. At work, IT would subject us to all sorts of training on this sort of thing. Some folks were annoyed, but I value the training. It's useful beyond the work environment. Same here. Your advice is valuable for other 'net interactions outside of the forum. You are enhancing my "spidey sense."

 

[Forum Boss]

Here is another consumer warning site that lists dangerous Zelle scams. On this Forum the primary issue is imposter sellers reading valid ads then posing as the real seller. Bottom line, if ANY seller demands Zelle, tell them "Zelle use violates Forum Policies." [Likewise with PayPal F&F.] And if you are tempted by some super low price, remember, if it seems too good to be true it is. I advise to NEVER EVER purchase ANY products from a third party with Zelle. If a member asks for Zelle, report them to Forum Boss immediately.

7 Zelle scams that will quickly drain your bank account! - Consumer Rescue

Don't let Zelle scams catch you off guard. Educate yourself on the latest tactics used by scammers and how to stay safe. Here's what we know.

consumerrescue.org

Here is another security site explaining the risks of Zelle:

1. Carefully read the Zelle terms of use.
   It’s critical that you read through Zelle’s terms of use before you connect it to your life savings. I would venture to guess that most Zelle users have not read through that lengthy document. But if you do, I guarantee that you will find lots of eye-opening cautionary information in there. It should be required reading with a test at the end.
2. Only use Zelle to send money to friends and family.
   Do not use Zelle to buy pets, pocketbooks, services, or anything else from a stranger. Make absolutely sure you have your recipient’s name, number, or email correct. If you make a mistake and send money to the wrong person, neither the banks nor Zelle will facilitate a correction. You’ll need to depend on the stranger’s willingness to return your money. And, of course, a scammer is unlikely to give back your cash even if you ask nicely!

From the terms of service: "Limitation of Liability - IN NO EVENT WILL THE ZELLE® NETWORK, ITS OWNERS, DIRECTORS, OFFICERS OR AGENTS BE LIABLE FOR ANY DAMAGES WHATSOEVER, INCLUDING, BUT NOT LIMITED TO ANY DIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR OTHER INDIRECT DAMAGES[.]"

 

[SteveOak]

Glad I never even opened a Zelle account!

FORUM BOSS: Your Bank may have automatically created a Zelle connection to your bank account and you may have activated it simply by not clicking on a button in an email. Wells Fargo is still aggressively trying to get people to activate Zelle accounts.

Every person should check with their Bank to ensure Zelle is NOT enabled.

Why is that?

Zelle is a legitimate means of transferring funds. It is like a firearm in that it is possible to use Zelle stupidly. That does not make the app bad. As the Forum Boss said "Only Send Money to Trusted Contacts: Zelle recommends transferring funds to people you know and trust. Don’t use the platform to purchase items on marketplaces from individuals you’ve never done business with."

 

[Straightshooter1]

I've been using Zelle through Chase for many years with no issues, but ONLY when dealing close trusted family when needed.

I refuse to use digital wallets, like venmo.

And I don't like to make online payments with any of my credit cards other than with American Express, as AMX is very good at taking care of disputed charges.

 

[Monte F]

I personally use Zelle to take payments for my HVAC services, usually rentals or vacation homes that the owner is not available. These are people I know and we both trust each other. I would not use it for transactions for online sales for the reasons stated above. For face to face transactions on Marketplace or Craigslist I prefer cash as we both know all is good. I do not accept checks from those I do not know and where they live.