Zelle Payments

Zelle can be used to send and receive money and make payments for anything from splitting a $30 dinner bill between friends to paying your rent. Zelle allows the transfer of funds between two parties using their individual financial institution accounts or debit cards. Zelle and Cash Apps like Zelle (i.e., Venmo, Apple Pay, etc.) make sending funds just as easy as paying with cash. However, you should only use these services when you are paying someone you know. Here are some tips to keep in mind.

Use with Friends and Family

To lower your risk of being a victim of fraud it is best to use Zelle and other Cash Apps among Friends and Family.  Do not use to pay for items you purchase from unknown sellers on the Internet. 

Transactions are Instantaneous

Most transactions are instantaneous and irreversible, which scammers are known to exploit.  Once you send funds, there is no recourse to get the funds back. If you accidentally choose the wrong person in your contact list or enter the wrong number, the transaction cannot be stopped or reversed.

Should NOT be used for Business Purposes - Personal Use Only

Most services have rules that prohibit use for commercial purposes, such as the buying and selling of goods and services. Read the Terms and Conditions of your Cash App service carefully, as some payments could be revoked, and your use of the service may be discontinued if you violate the provider’s terms. 

Understand the Risks

Because these types of transactions are completed by a third party, the Credit Union does not have access to any information about these transactions even if they involve Credit Union accounts. In addition, the other payment service providers are only responsible for transferring the funds. Once funds have been sent as authorized and received, they are no longer responsible for the transaction. If you paid for something but did not receive it or received damaged goods, you are usually on your own when it comes to a dispute. 

Before using these types of services, research the provider’s customer support policies so you know what to expect. While these transactions are very convenient, you should view them as cash payments that cannot be retrieved.