electric money transfer

[Dave Fritz]

At 78 I made my first Zelle transaction this week, purchasing a used D-Way hollowing tool. I felt pretty happy when it all worked and was impressed by the security and help my credit union gave me to get it done. Now today I get a notice that my credit card is offering cardless transactions. I think I'll wait on that. The system can only handle so much.

[Tom M King]

Zelle is good because there is no fee. When we get a payment through Zelle, or send payments to a new number, we do a one dollar send first to make sure it works correctly.

[Perry Hilbert Jr]

35 Years ago, the firm I worked at settled a case for over 3 million dollars. The insurance company did not want to send checks for such huge amounts and insisted on an electronic transfer. I took the insurance company information and claim number to the branch manager at out bank and put him in touch with the accounting department at the insurance company. I have no idea what security measures were in place but the bucks were our trust account within 30 minutes. Did an electric fund transfer a couple weeks ago, just from my desk top and money was in the seller's hands in less than 5 minutes.

[Jim Becker]

Tom, Zelle is different than other systems as it merely assists with the money moving from point A to point B. There is no transaction processing fee as they are only a simple conduit between banks that's faster than regular ACH transfers. Of all the ways folks can "send money", it's the most like cash. Of course, it has the same risk as cash, too, as once it's sent, it's sent.

[Tom M King]

That's why we do the one dollar first, to make sure no mistakes were made.

[roger wiegand]

Beware that Zelle has many fewer consumer protections than other means of electronic payments. The banks have been taking no responsibility for fraud and payments gone astray. https://www.nytimes.com/2022/03/06/business/payments-fraud-zelle-banks.html They are much like wire transfers in this regard. (they may well be wire transfers, "under the hood")

Paypal and Venmo offer at least some protection. Credit cards, in comparison, give consumers quite strong protection against fraud.

[Tom M King]

We feel fine taking puppy deposits with Zelle. When they send the one dollar test send, they then have the receiver information in their online banking info and can just click on that link in their bank statement to send the full amount. $30 a piece adds up for each transaction by any way other than Zelle. For people that we have talked to a lot, who are getting one of our puppies, we aren't worried about fraud.

[Dave Fritz]

Thanks for the responses. All the cautions shared are definitely real. I did not do the trial dollar send which I will do in the future if the need arises. The process requires the money moves from checking account to checking account. I didn't have one with the credit union, rather we have a money market that is a hybrid. We can write checks from it but it's not technically a checking account so we opened a new checking account which has no fees since we have other investments with them. We have a very small balance in that account so if trouble should arise we wouldn't be out much. I do the same with pay pal and have it associated with a checking account with very little money in it. I transfer it in as needed from a money market account. Do you think this is a good practice or not necessary?

[Ron Selzer]

Thanks for the responses. All the cautions shared are definitely real. I did not do the trial dollar send which I will do in the future if the need arises. The process requires the money moves from checking account to checking account. I didn't have one with the credit union, rather we have a money market that is a hybrid. We can write checks from it but it's not technically a checking account so we opened a new checking account which has no fees since we have other investments with them. We have a very small balance in that account so if trouble should arise we wouldn't be out much. I do the same with pay pal and have it associated with a checking account with very little money in it. I transfer it in as needed from a money market account. Do you think this is a good practice or not necessary?
Definitely a good practice