Overview

What is Zelle?

Zelle is a peer-to-peer money transfer app that allows individuals to send and receive money within minutes.  Users access Zelle through their banking institution's banking app or online banking site.   User accounts are associated with a phone numbers, which allows other users to easily find the person they wish to send money to. Unlike other money transfer apps, Zelle does not charge a fee for an instant transfer.  More than 1700 banks include Zelle in their banking app.

Zelle claims are on the rise.  Due to the popularity of the app, fraudsters have devised new scams to lure users into traps and steal their money.  Unlike payment cards, Zelle does not currently provide complete liability protection to it's users.  In addition to the rise in fraud scams, many merchants are opting to accept Zelle as a payment method for goods or services to make it easier for consumers to do business with them.  The increase in re-sale activity, thanks to apps like OfferUp, has also led to a significant rise in peer-to-per transfers, and fraud claims.

QFD includes support for end-to-end Zelle dispute processing and provides many features to help mitigate losses for financial institutions and improve customer experience.  Continue reading to understand how QFD supports Zelle disputes.

Processing

Collect

The collect stage is generally referred to as “intake”. This is where the case is created and information is collected from the claimant in order to provide all the details that are necessary to investigate the claim. Rules are evaluated as the user navigates through the collection process so that content is based on the context of the case.  This is invisible to the user and developed in such a way that the user need not understand the underlying rules or have detailed knowledge of the claims process.  To see the process in action, check out a short video demonstration.

Dispute Reasons & Supported Transactions

The following dispute reasons are applicable.  See Dispute Reason or Dispute Transactions for more details about these steps.

Required Documentation

There are currently no required documents for Zelle claims.

Enhance

The Enhance stage is the first fulfillment ("back-office") stage and provides steps for collecting additional information that is needed to support the investigation and processing of the claim.  The information that was gathered in the Collect stage is stored so it can be viewed later.  Once this happens, the system completes the initialization process and transmits the confirmation letter.  Typically, this will happen within seconds, well before a fulfillment user ever opens a claim.  The following steps are executed, where applicable, usually automatically.

For more information, see Enhance.

Authorizations

QFD supports the ability to include pending transactions in a claim.  When pending transactions are included in a claim, QFD will check for new postings every 6 hours.  When new postings are available, QFD will evaluate them and attempt to make an automatic match.

For more information, see Authorizations.

Enrichment

When available, QFD will retrieve additional details about a disputed transaction from the system of record.

For more information, see Enrichment.

Analyze

The Analyze stage is where decisions are made.  This is where back-office users will spend the majority of their time reviewing case details and making decisions that have not already been automated by QFD.  The following steps are executed, where applicable. 

For more information, see Analyze.

Collaboration

For more information, see Merchant Collaboration.

Merchant Credits

QFD provides automated merchant credit check algorithms to support quick and automatic dispute resolution.  This feature is available for ACH, BillPay, Card, and Zelle transactions.

For more information, see Merchant Credits.

Provisional Credit

For more information, see Provisional Credit.

Investigation

QFD provides several options for automating Provisional Credit based on various risk factors and documentation requirements.  When risk factors are present, or the amount of the claim exceeds configurable thresholds, the decision is left to a user.  Additionally, QFD will ensure that provisional credit is issued in accordance with applicable regulatory requirements, if not already issued prior to the required date.

For more information, see Investigation.

Fees

For more information, see Fees.

Interest

For more details, see Interest Calculation

Disposition

Responses

Approvals