Zelle
- Devan Robertson
- Kristafanie Somers
Contents
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 sending them 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.
Configuration
QFD includes various options for customizing the behavior of the application. The following settings are applicable to Zelle claims.
Initial Interaction options are available for applying automation to a claim at the time of initial contact with the accountholder. This includes settings for automatic issue of provisional credit, as well as automatically issuing final credit. These settings can be customized, based on transaction type. AutoPay can be enabled to automatically pay a claim during the initial interaction with the accountholder. This feature allows you to establish a dollar threshold for claims that should be automatically granted provisional or final credit. When the amount of the claim is below the defined threshold, and does not meet any specific exclusion criteria, a credit is issued and communicated to the accountholder immediately. This frees up users to spend more time on claims with higher loss potential and improves the customer experiencing by streamlining the process and providing a quick resolution to their issue. By default, QFD will not automatically pay or grant provisional credit for: The following settings are available for customizing exclusion criteria. If provisional credit was not automatically granted as as result of the Initial Interaction settings above, the following options apply. When Provisional Credit is not automatically granted as as result of the Initial Interaction settings, do one of the following: When the deadline to grant provisional credit on a claim covered by Regulation E has expired and provisional credit is automatically issued by the system, do one of the following:Initial Interaction
AutoPay
Setting Name Setting Description Advanced Options AutoPay Threshold Upon submission, automatically pay claims that are less than or equal to X dollars AND all disputed transactions are less than X dollars. Split thresholds for fraud and non-fraud. Auto-PC Threshold Upon submission, automatically grant provisional credit to claims that are less than or equal to X dollars. Split thresholds for fraud and non-fraud. Auto-PC Non-Regulatory Grant provisional credit on non-regulatory disputes? Exclusions
Setting Name Options Potential Claim Abuse X claims have been filed in the last X days. Pend these items for Fraud Review instead of Provisional Credit Review? Suspicious Velocity More than X claims opened within 24 hours. Previous Denial One, or more, disputes on the current or another claim by the same customer/member was previously denied. New Account A new account has been opened with the same customer/member within X days of the contact date. Early Transactions A disputed transaction occurred within X days of the account opening. Documents Required One or more disputes require documentation. Non-Protected Claims AutoPay Exclude Non Reg protected claims from AutoPay and Auto-PC automation? This includes claims that are not protected by regulation, based on Regulatory Settings. Account Takeover Exclude Account Takeover (ATO) claims from AutoPay and Auto-PC automation? Proprietary ATM Exclude Proprietary ATM claims from AutoPay and Auto-PC automation? Provisional Credit
Setting Name Setting Description Provisional Credit Review Post Reg E 10 Provisional Credit Review
Intake
Custom Instructions for Zelle Fraud/Scam
Custom ("Internal Only") instructions can be configured to display to internal users during the intake process for Zelle fraud claims.
QFD provides the ability to enable approval thresholds for important decisions made by users. Thresholds can be established to trigger the approval requirement, where applicable. When enabled, and the claim or dispute meets the criteria for approval, an assignment is created to prompt manager review. For more information, see Approvals.Approval Settings
Setting Name Description Read Only? Write Off Approval Require approval if the amount of the dispute is greater than X dollars or the amount of the claim is greater than Y dollars Deny Approval Require approval if the amount to be denied is greater than X dollars or the amount of the claim is greater than Y dollars Deny Approval Exclusions Exclude specific denial reasons, such as Merchant Credit or Withdrawn, from requiring approval. Only applicable when Deny Approval is enabled. Provisional Credit Approval Require approval if the amount of the claim is greater than X dollars. Letter Approval Require approval for specific letters.
The following settings allow customization of available deny reasons and justifications. These settings determine what correspondence is sent to the accountholder. For more information about the denial process, see Denied. When enabled, deny justifications can be configured to require users to select one, or more, specific justifications for a "No Error" deny decision. These justifications are fully configurable by transaction type and fraud/non-fraud and allow the user to provide additional context to the accountholder via the resolution letter. The following "applicable to" options are supported:Denial Configuration
Setting Name Description Read Only? Deny Reasons Lists available deny reasons and their applicability to Claim types. Some reasons can be disabled so that they are not available for use. Yes Denial Commentary Require commentary when a user denies one, or more, disputes? Yes Deny Justifications
For additional configuration settings that are not specific to Zelle, see Configuration.
Supported Functions
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.
Which of the following best describes the reason for your dispute? Reason Supported Transactions Selection Questionnaire Unauthorized Pending/Posted Debits, Posted Credits I did not authorize a debit or credit to my account. Incorrect Posted Credits and Debits I authorized a transaction, but it is incorrect. Merchandise/Service Dispute Posted Debits I authorized a debit to my account, but there is a problem and I need to dispute it.
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.
Zelle required data: Payee, Transaction Amount, Transaction Date
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
QFD supports collaboration with card merchants via Ethoca and Verifi networks. These integrations allow issuers to attempt recovery from the merchant before initiating a chargeback with the card association. Merchant collaboration currently only supports card transactions.
For more information, see 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
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For more information, see Investigation.
Investigation
QFD includes various options for automating a reasonable investigation, as well as helping to facilitate investigations performed by a user.
For more information, see Research.
Fees
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For more information, see Fees.
Interest
QFD can be configured to automatically calculate and refund interest associated with disputed transactions. Users can also use the Interest Calculator to manually calculate interest and generate a refund.
For more details, see Interest
Disposition
The Disposition step is where a determination is made about how the dispute will be resolved. If automated recovery is enabled and the dispute has not been reasserted, the system will attempt to automatically apply a recovery option and execute Recovery. Otherwise, a user will be prompted to determine the best recovery option. If no recovery options are available, the Final Investigation Flow flow is executed. Various options are available for applying automated decisioning at this step to reduce overhead.
For more details, see Disposition.
Responses
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For more details, see Responses.
Approvals
This optional extension provides added control in your fulfillment process by requiring an escalated review of key, manual decision points. Approvals can be enabled, with configurable thresholds, for the following user decisions: Deny, Provisional Credit, and Write Off. When an approval flow is enabled, the decision that requires approval is suspended until a manager completes the review assignment. The manager can approve the decision and the flow resumes, or they can decline the decision, provide an explanation, and the flow returns to the previous decision assignment.
For more details, see Approvals.
Execute
The Execute stage is where processing and maintenance happens. When information collected in Collect and Enhance or decisions made in Analyze trigger new processing or maintenance requirements, flows are executed in Execute and assignments are generated to get the work done. All Execute tasks can be automated by QFD. The following steps are executed, where applicable.
For more details, see Execute.
Recovery
The recovery process is built around recovery strategies and recovery options. A recovery option is a specific method that is available for recovering funds for a specific transaction type and dispute scenario. A recovery strategy is a group of related recovery options. For example, Visa Fraud is a recovery strategy and includes a recovery option that aligns to each of the fraud reason codes that Visa provides for issuer chargebacks. A single dispute may have recovery rights under more than one recovery option, but it's unlikely that more than one recovery strategy would apply to a single claim. The system will automatically evaluate dispute details to determine which recovery strategy and, within that strategy, which recovery option is most appropriate. In some cases, a user may be required to determine an appropriate recovery option or review then one selected by the system.
The following recovery options are available for Zelle.
In addition to the recovery options mentioned here, users have the option of pursuing a Good Faith request via the Pend option menu. Once a response is received, a user may return to recovery to process a recovery option.Option Applicability Only available for unduly enriched disputes (disputes on credit transactions). Zelle Return Only available for disputes on debit transactions.
For more details, see Recovery.
Accounting
QFD performs general accounting operations required for claims processing. The system can be integrated with most real-time accounting service interfaces or support batch accounting file generation and delivery. When no services are available, these operations are performed by a user. Specific accounting rules can be configured for each transaction type and adjustment type to ensure all accountholder and GL to GL accounting needs are supported. Additionally, QFD performs account balancing to ensure that all require accounting is performed on-time.
For more details, see Accounting.
Account Maintenance
When any type of maintenance is required, such as account blocks or stand-in file listing, these tasks are executed in the Account Maintenance step. All maintenance tasks can be automated by QFD.
There are no Account Maintenance tasks that are specific to Zelle.
For more details, see Account Maintenance.
Fraud Reporting
For most card networks, fraud reporting must be completed before a fraud chargeback can be submitted. The system facilitates automatic fraud reporting via direct integration with popular card networks. This step is only applicable to credit and debit card claims.
For more details, see Fraud Reporting.
Notifications
QFD includes pre-defined correspondence for all supported claim functions and supports multiple channels for correspondence with customers. Each channel uses a formatting template that simplifies the design process by applying the template to all communications in that channel and allowing the content to be managed independently of branding. Content rules determine what is included in each letter, regardless of channel (though some content is channel-aware). Notifications are automatically generated, based on regulatory requirements and configurable settings.
The following letters are all applicable to Zelle disputes.
For more details, see Correspondence
Resolve
The Resolve stage is the final stage in the fulfillment process. When a dispute is paid or denied, it enters this flow and triggers final resolution activities.
For more details, see Resolve.
Paid
A dispute is paid when the accountholder's claim is found to be valid. In many cases, claims and disputes are automatically paid by QFD. A claim or dispute can be resolved as 'Paid' via the following methods: When a pay decision is made, by a user or the system, a Paid letter is generated and any accounting adjustments are executed by QFD.
For more details, see Paid.
Denied
Denying a dispute can be achieved via several different methods within QFD, depending on where the dispute is at in the case lifecycle. Most commonly, this will happen in Final Investigation or during a review assignment in Recovery. This action triggers several systematic checks and balances to ensure that all required resolution activities are complete, such as customer notification and accounting.
The following deny reasons are applicable to Zelle disputes. Some deny reasons can be disabled via Config.
For more details, see Denied.