Small Banks Warn They Might Have to Drop Zelle Over Scam Payment Costs

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Small Banks Warn They Might Have to Drop Zelle Over Scam Payment Costs
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Community banks and credit unions might drop out of partnerships with instant-payment apps like Zelle if required to reimburse customers who fall victim to scams, two industry trade groups said

Community banks and credit unions might drop out of partnerships with instant-payment apps like Zelle if required to reimburseFacing pressure from lawmakers and regulators to do more to protect customers from fraud, the seven large banks that own Zelle are working

on a planfor customers duped into sending money. Scams using instant-payment apps like Zelle, Venmo and CashApp are expected to cost Americans $3 billion by 2026, up from $1.6 billion in 2021, according to a recent report by ACI Worldwide, a payments-software company.

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