{{short description|Digital payments network}} {{other uses}} {{Use mdy dates|date=August 2023}} {{Infobox company | name = Zelle | former_name = clearXchange | type = Private | industry = {{Unbulleted list|Payment service|Payment network|Mobile app}} | founded = {{start date and age|2016}} | hq_location_city = Scottsdale, Arizona | hq_location_country = United States | services = Electronic funds transfer <!-- The source says Early Warning Systems, not Zelle, employs 1100+ people. The article is about Zelle, not Early Warning Sytems. | num_employees = 1100+ (2022)<ref name="azcentral-202208">{{Cite web |last=Wiles |first=Russ |title=Zelle is a popular way to send money. That's helping its Scottsdale-based parent make a big expansion |date=August 6, 2023 |url=https://www.azcentral.com/story/money/business/consumers/2022/08/06/early-warning-services-scottsdale-arizona-expands-success-zelle/10236561002/ |access-date=August 6, 2023 |website=The Arizona Republic |language=en-US}}</ref> -->| parent = Early Warning Services, LLC | website = {{URL|zelle.com}} }}
'''Zelle''' ({{IPAc-en|z|E|l}}) is an American digital payments network run by a private financial services company owned by Bank of America, Truist, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank, and Wells Fargo.<ref name="vulnerable_2018_04_07_nytimes_com">{{Cite news |last=Cowley |first=Stacy |date=April 22, 2018 |title=Zelle, the Banks' Answer to Venmo, Proves Vulnerable to Fraud |language=en-US |work=The New York Times |url=https://www.nytimes.com/2018/04/22/business/zelle-banks-fraud.html |access-date=October 1, 2022 |issn=0362-4331 |archive-date=October 17, 2018 |archive-url=https://web.archive.org/web/20181017041426/https://www.nytimes.com/2018/04/22/business/zelle-banks-fraud.html |url-status=live |url-access=limited}}</ref><ref name="EWSoverview">{{cite web |title=Early Warning Corporate Overview |url=http://www.earlywarning.com/pdf/early-warning-corporate-overview.pdf |url-status=live |archive-url=https://web.archive.org/web/20180112160505/http://www.earlywarning.com/pdf/early-warning-corporate-overview.pdf |archive-date=January 12, 2018 |access-date=January 12, 2018 |website=Early Warning Services official website}}</ref><ref>{{Cite web |date=May 5, 2022 |title=17 Best Online Banks That Use Zelle - A Complete List! |url=https://allfinancedeals.com/online-banks-that-use-zelle.html |access-date=June 9, 2022 |website=All Finance Deals |language=en-US |archive-date=May 6, 2022 |archive-url=https://web.archive.org/web/20220506184531/https://allfinancedeals.com/online-banks-that-use-zelle.html |url-status=live }}</ref> The Zelle service enables individuals to electronically transfer money from their bank account to another registered user's bank account (within the United States) using a mobile device or the website of a participating banking institution. Transfers between bank accounts of registered users are typically completed within minutes. There is currently no fee or charge on the transaction to users.<ref name="vulnerable_2018_04_07_nytimes_com" /> Instead, participating banking institutions are charged a fee per transaction.<ref>{{cite web |author1=9Star Solutions |title=How Does Zelle Make Money: A Simple Guide to Digital Payment Profits |url=https://www.linkedin.com/pulse/how-does-zelle-make-money-simple-guide-digital-payment-eilxc |website=LinkedIn}}</ref>
The Zelle service was launched in June 2017,<ref name="vulnerable_2018_04_07_nytimes_com" /> as the successor to the '''clearXchange''' payment service. Zelle has expanded, and as of 2022 eighty percent of the US population could connect to Zelle through their banking app, with over 1,600 financial institutions participating.<ref name="ii-202209">{{Cite web |last=Nunez |first=Adriana |date=September 9, 2022 |title=Zelle's five-year growth is a harbinger for the future of P2P payments |url=https://www.insiderintelligence.com/content/zelle-carries-momentum-thanks-network-capability-expansions |access-date=March 24, 2023 |website=Insider Intelligence}}</ref> Zelle has been criticized for being a platform that has facilitated online financial fraud in the United States. In 2022, at a Senate Banking Committee hearing, it was censured for not giving refunds to people who were tricked by criminals using Zelle.
In April 2025, Zelle shut down its standalone app, requiring all users to interact with Zelle through their bank's app.<ref>{{Cite web |title=Changes to the standalone Zelle® app {{!}} Zelle |url=https://www.zellepay.com/faq/changes-standalone-zelle-app |access-date=2025-04-05 |website=www.zellepay.com |language=en |archive-date=April 5, 2025 |archive-url=https://web.archive.org/web/20250405213323/https://www.zellepay.com/faq/changes-standalone-zelle-app |url-status=dead }}</ref>
== History == Zelle originated as clearXchange, a payments service launched in April 2011 by Bank of America, JPMorgan Chase, and Wells Fargo.<ref name="AaronNew2">{{cite news |last1=Smith |first1=Aaron |date=May 25, 2011 |title=New cash transfer service rivals PayPal |url=https://money.cnn.com/2011/05/25/news/companies/banks_paypal_clearxchange/index.htm |url-status=dead |archive-url=https://web.archive.org/web/20150427022907/http://money.cnn.com/2011/05/25/news/companies/banks_paypal_clearxchange/index.htm |archive-date=April 27, 2015 |access-date=July 29, 2015 |website=CNN Money}}</ref><ref name="SalmonWhy2">{{cite news |last1=Salmon |first1=Felix |date=May 25, 2011 |title=Why clearXchange is great for payments |url=http://blogs.reuters.com/felix-salmon/2011/05/25/why-clearxchange-is-great-for-payments/ |url-status=dead |archive-url=https://web.archive.org/web/20110527124603/http://blogs.reuters.com/felix-salmon/2011/05/25/why-clearxchange-is-great-for-payments/ |archive-date=May 27, 2011 |access-date=July 29, 2015 |website=Reuters}}</ref> The platform enabled person-to-person, business-to-consumer, and government-to-consumer payments.<ref>{{cite news |last1=Heun |first1=David |date=July 15, 2015 |title=clearXchange: We Have the Answer to Real-Time Payments |url=http://www.paymentssource.com/news/technology/clearxchange-we-have-the-answer-to-real-time-payments-3021567-1.html |url-status=live |archive-url=https://web.archive.org/web/20150618171852/http://www.paymentssource.com/news/technology/clearxchange-we-have-the-answer-to-real-time-payments-3021567-1.html |archive-date=June 18, 2015 |access-date=July 29, 2015 |work=Payments Source}}</ref>
By 2015, clearXchange had expanded to include US Bank and Capital One as owner-members.<ref name="BhattaraiCapitalOne">{{cite news |last=Bhattarai |first=Abha |date=March 9, 2014 |title=Capital One to begin offering peer-to-peer money transfers via email, mobile phone |url=https://www.washingtonpost.com/business/capitalbusiness/capital-one-to-begin-offering-peer-to-peer-money-transfers-via-email-mobile-phone/2014/03/07/4768fb20-a3ec-11e3-a5fa-55f0c77bf39c_story.html |access-date=November 13, 2025 |work=Washington Post}}</ref><ref name=":02">{{cite news |date=March 17, 2015 |title=US Bank Latest Owner-Member of clearXchange |url=http://www.pymnts.com/news/acquiring/2015/us-bank-latest-owner-member-of-clearxchange/#.Vbu_-M42ufQ |url-status=live |archive-url=https://web.archive.org/web/20150718050011/http://www.pymnts.com/news/acquiring/2015/us-bank-latest-owner-member-of-clearxchange/#.Vbu_-M42ufQ |archive-date=July 18, 2015 |access-date=August 1, 2015 |website=PYMNTS.com}}</ref> That same year, it announced the availability of a real-time payments system.<ref>{{cite news |last1=Bakker |first1=Evan |date=June 21, 2015 |title=Here's What Happened in Payments this Week |url=http://www.businessinsider.com/heres-what-happened-in-payments-this-week1-2015-6 |url-status=live |archive-url=https://web.archive.org/web/20150805100043/http://www.businessinsider.com/heres-what-happened-in-payments-this-week1-2015-6 |archive-date=August 5, 2015 |access-date=July 29, 2015 |work=Business Insider}}</ref><ref>{{cite news |last1=Heun |first1=David |date=June 15, 2015 |title=Bank Consortium clearXchange Debuts Real-Time Payments |url=http://www.americanbanker.com/news/bank-technology/bank-consortium-clearxchange-debuts-real-time-payments-1074865-1.html |url-status=live |archive-url=https://web.archive.org/web/20150618140638/http://www.americanbanker.com/news/bank-technology/bank-consortium-clearxchange-debuts-real-time-payments-1074865-1.html |archive-date=June 18, 2015 |access-date=July 29, 2015 |website=American Banker}}</ref> In 2016, clearXchange was acquired by Early Warning Services, a financial technology company.<ref name="AdamsAcquisition">{{cite news |last=Adams |first=John |date=January 12, 2016 |title=Early Warning, ClearXchange Tackle the Security of Faster Payments |url=https://www.americanbanker.com/news/early-warning-clearxchange-tackle-the-security-of-faster-payments |access-date=November 13, 2025 |work=American Banker |quote=Early Warning announced Tuesday that it had closed its acquisition of clearXchange, the country's largest financial institution-led payments network.}}</ref> At the time of the acquisition, Early Warning was owned by Bank of America, US Bank, Chase, Capital One, Wells Fargo, PNC Bank, and BB&T, which would later become Truist.<ref name="AmericanBankerAcquisition">{{cite news |author=<!--Staff writer(s)/no by-line.--> |date=October 26, 2015 |title=ClearXchange, Early Warning Merger Keeps Banks at Helm |url=https://www.americanbanker.com/creditunions/news/clearxchange-early-warning-merger-keeps-banks-at-helm |access-date=November 13, 2025 |work=American Banker |quote=Under an agreement announced Oct. 26, Early Warning, a risk management collaboration owned by Bank of America, BB&T, Capital One, JPMorgan Chase and Wells Fargo, will acquire ClearXchange … As part of the agreement, U.S. Bank and PNC are expected to join B of A, Capital One, JPMorgan Chase and Wells Fargo as owners of the combined company.}}</ref><ref name="ChemtobTruist">{{cite news |last=Chemtob |first=Danielle |date=December 9, 2019 |title=BB&T, SunTrust finish merger to become Truist in ‘seamless’ change. Here’s what’s next |url=https://www.charlotteobserver.com/news/business/banking/article238089189.html |access-date=November 13, 2025 |work=Charlotte Observer}}</ref> The following year, Early Warning introduced Zelle and announced the phaseout of clearXchange's person-to-person service.<ref name="PerezRollout">{{cite news |last=Perez |first=Sarah |date=June 12, 2017 |title=Zelle, the real-time Venmo competitor backed by over 30 U.S. banks, arrives this month |url=https://techcrunch.com/2017/06/12/zelle-the-real-time-venmo-competitor-backed-by-over-30-u-s-banks-arrives-this-month/ |access-date=November 13, 2025 |work=TechCrunch}}</ref>
In March 2019, Early Warning Services CEO Paul Finch stepped down to work for his family's charitable foundation.<ref>{{Cite web |last=Crosman |first=Penny |date=May 17, 2018 |title=Zelle founder Paul Finch to step down |url=https://www.americanbanker.com/news/zelle-founder-paul-finch-to-step-down |url-status=live |archive-url=https://web.archive.org/web/20210306182025/https://www.americanbanker.com/news/zelle-founder-paul-finch-to-step-down |archive-date=March 6, 2021 |access-date=August 6, 2023 |website=American Banker |language=en}}</ref> In May 2019, Early Warning Services appointed a new CEO, Albert Ko, who was formerly the chief transformation officer for Intuit.<ref>{{Cite web |date=May 30, 2019 |title=Zelle operator Early Warning hires new CEO |url=https://www.americanbanker.com/news/zelle-operator-early-warning-hires-new-ceo |url-status=live |archive-url=https://web.archive.org/web/20201108003419/https://www.americanbanker.com/news/zelle-operator-early-warning-hires-new-ceo |archive-date=November 8, 2020 |access-date=November 16, 2020 |website=American Banker |language=en}}</ref>
By the end of 2022, Zelle was offered by approximately 1,800 financial institutions and reached about 80% of Americans with bank accounts, processing $1.6 billion in daily transactions.<ref name="FitzgeraldGrowth">{{cite news |last=Fitzgerald |first=Kate |date=December 22, 2022 |title=Zelle's rocky rise in 2022 |url=https://www.americanbanker.com/payments/list/zelles-rocky-rise-in-2022 |access-date=November 13, 2025 |work=American Banker}}</ref> In August 2023, Early Warning appointed Cameron Fowler as chief executive officer, succeeding Albert Ko.<ref name="EdelenCEOAppt">{{cite news |last=Edelen |first=Amy |date=August 13, 2023 |title=Early Warning Services, the Scottsdale company behind Zelle network, names new CEO |url=https://www.bizjournals.com/phoenix/news/2023/08/13/early-warning-services-new-ceo.html |access-date=November 13, 2025 |work=Phoenix Business Journal}}</ref> In September 2024, Denise Leonhard, formerly of Venmo, PayPay, and American Express, became general manager of Zelle.<ref name="CrainsZelleGM">{{cite news |author=<!--Staff writer(s)/no by-line.--> |date=September 24, 2024 |title=People on the Move |url=https://www.crainsnewyork.com/people-on-the-move/denise-leonhard |access-date=November 14, 2025 |work=Crain's New York Business}}</ref>
During 2024, Zelle processed over $1 trillion in transactions, with approximately $283 billion being sent or received by small businesses.<ref name="SonTransactions">{{cite news |last=Son |first=Hugh |date=February 12, 2025 |title=Zelle payments top $1 trillion in 2024 as network’s growth outpaces rivals including PayPal |url=https://www.cnbc.com/2025/02/12/zelle-payments-top-1-trillion-in-2024.html |access-date=November 14, 2025 |work=CNBC}}</ref><ref name="PizzolatoSmallBiz">{{cite news |last=Pizzolato |first=Joey |date=September 16, 2025 |title=Zelle's small business bet helps boost payments volume |url=https://www.americanbanker.com/payments/news/zelle-payment-volume-increases-to-almost-600b-in-1h |access-date=November 13, 2025 |work=American Banker |quote=Small businesses sent or received a total of $283 billion across more than 500 million transactions in 2024.}}</ref> By the end of that year, Zelle was connecting 151 million consumer and small business bank accounts.<ref name="SonTransactions" /><ref name="GrantAccounts">{{cite news |last=Grant |first=Wesley |date=February 12, 2025 |title=Amid Increasing Competition, Zelle Leads the P2P Pack |url=https://www.paymentsjournal.com/amid-increasing-competition-zelle-leads-the-p2p-pack/ |access-date=November 14, 2025 |work=Payments Journal}}</ref> In April 2025, Zelle discontinued its standalone mobile app, requiring customers to access the service through participating banks' applications.<ref name="ValinskyApp">{{cite news |last=Valinsky |first=Jordan |date=April 3, 2025 |title=Zelle is shutting down its app. Here’s how you can still use the payment service |url=https://edition.cnn.com/2025/04/03/business/zelle-cash-transferring-app-shuts-down |access-date=November 14, 2025 |work=CNN}}</ref> As of July 2025, Zelle was offered by 2,300 financial institutions, with 95 percent of those institutions being either community banks or credit unions.<ref name="CooleyExpansion">{{cite news |last=Cooley |first=Patrick |date=July 16, 2025 |title=Why small banks may shun Zelle |url=https://www.paymentsdive.com/news/why-small-banks-might-shun-zelle-money-transfer/753185/ |access-date=November 14, 2025 |work=Payments Dive}}</ref><ref name="ABAExpansion">{{cite news |author=<!--Staff writer(s)/no by-line.--> |date=July 14, 2025 |title=Zelle grows to more than 2,300 financial institutions |url=https://bankingjournal.aba.com/2025/07/zelle-grows-to-more-than-2300-financial-institutions/ |access-date=November 13, 2025 |work=ABA Banking Journal}}</ref>
==Service== Zelle is a digital payments network in the United States that enables person-to-person money transfers.<ref name=NYTCowley>{{cite news |last=Cowley |first=Stacy |date=June 12, 2017 |title=Cash Faces a New Challenger in Zelle, a Mobile Banking Service |url=https://www.nytimes.com/2017/06/12/business/dealbook/mobile-banking-zelle-venmo-apple-pay.html |work=New York Times |access-date=March 23, 2026}}</ref> It is available to individuals or small businesses that have a U.S.-based checking or savings account with a participating bank or credit union.<ref name=TriCityHeraldHickey>{{cite news |last=Hickey |first=Bethany |date=April 24, 2025 |title=Zelle drops standalone app: Now what? |url=https://www.tri-cityherald.com/news/business/article304939266.html |work=Tri-City Herald |access-date=January 13, 2026}}</ref><ref name=AmericanBankerPizzolato>{{cite news |last=Pizzolato |first=Joey |date=September 16, 2025 |title=Zelle's small business bet helps boost payments volume |url=https://www.americanbanker.com/payments/news/zelle-passes-1t-in-2024-with-a-boost-from-small-businesses |work=American Banker |quote=Payments to small businesses were the fastest growing use-case for Zelle, increasing 31% to $180 million. |access-date=January 13, 2026}}</ref> Zelle does not hold funds, which move directly from the sender’s bank account to the recipient’s bank account.<ref name=ConsumerReportsGill>{{cite news |last=Gill |first=Lisa L. |date=January 24, 2023 |title=CR Finds Potential Consumer Risks for Users of Apple Cash, Cash App, Venmo, and Zelle |url=https://www.consumerreports.org/money/digital-payments/peer-to-peer-payment-apps-comparison-a5999129619/ |work=Consumer Reports |access-date=March 23, 2026}}</ref><ref name=CNBCAvery>{{cite news |last1=Avery |first1=Dan |last2=DeMatteo |first2=Megan |date=January 14, 2026 |title=The best money transfer apps of 2026 |url=https://www.cnbc.com/select/best-money-transfer-payment-apps/ |work=CNBC |access-date=January 14, 2026}}</ref> These transactions are typically settled within minutes.<ref name=BNDThompson>{{cite news |last=Thompson |first=Julie |date=July 8, 2024 |title=Zelle for Business |url=https://www.businessnewsdaily.com/16584-zelle-for-business.html |work=Business News Daily |access-date=January 13, 2026}}</ref>
Zelle does not charge users any fees for sending, receiving, or requesting money. The same is true of the majority of the financial institutions within the payments network.<ref name=CNBCStaples>{{cite news |last=Staples |first=Ana |date=February 29, 2024 |title=Zelle allows you to send and receive money in minutes — here’s how it works |url=https://www.cnbc.com/select/how-to-use-zelle/ |work=CNBC |access-date=January 13, 2026}}</ref><ref name=TechCrunchSilberling>{{cite news |last=Silberling |first=Amanda |date=April 1, 2025 |title=Zelle is shutting down its app, but you probably don’t need to worry |url=https://techcrunch.com/2025/04/01/zelle-is-shutting-down-its-app-but-you-probably-dont-need-to-worry/ |work=TechCrunch |access-date=January 13, 2026}}</ref>
== Competition with Venmo == The Zelle service's principal competitor is PayPal and its Venmo payment service.<ref name="vulnerable_2018_04_07_nytimes_com" /><ref name="venmo_killer_2016_08_24_wsj_com">{{cite news |url=https://www.wsj.com/articles/americas-biggest-banks-have-a-new-name-for-their-venmo-killer-zelle-1472047872 |title=America's Biggest Banks Have a New Name for Their Venmo-Killer: Zelle |last1=Sidel |first1=Robin |date=August 24, 2016 |access-date=February 11, 2020 |archive-date=December 25, 2019 |archive-url=https://web.archive.org/web/20191225010406/https://www.wsj.com/articles/americas-biggest-banks-have-a-new-name-for-their-venmo-killer-zelle-1472047872 |url-status=live }}</ref> Venmo is more popular, based on public awareness, opinion polling, and active engagement with users, but Zelle processes a much larger dollar volume of money transfers, transferring transactions of more than $1.6 billion a day in the first half of 2022.<ref name="ambanker-202212">{{Cite web |last=Fitzgerald |first=Kate |date=December 22, 2022 |title=Zelle's rocky rise in 2022 |url=https://www.americanbanker.com/payments/list/zelles-rocky-rise-in-2022 |access-date=August 6, 2023 |website=American Banker |language=en}}</ref><ref name="the_hard_way_2018_02_16_techcrunch">{{Cite web |last=Perez |first=Sarah |date=February 16, 2018 |title=Zelle users are finding out the hard way there's no fraud protection |url=https://techcrunch.com/2018/02/16/zelle-users-are-finding-out-the-hard-way-theres-no-fraud-protection/ |access-date=October 1, 2022 |website=TechCrunch |language=en-US |archive-date=May 30, 2020 |archive-url=https://web.archive.org/web/20200530042607/https://techcrunch.com/2018/02/16/zelle-users-are-finding-out-the-hard-way-theres-no-fraud-protection/ |url-status=live }}</ref><ref name=Alternative>{{cite news |url=http://www.businessinsider.com/venmo-apple-pay-cash-vs-zelle-2017-12 |title=Apple Pay Cash won't be the death of Venmo – but I found the little-known alternative that will |first=Lauren |last=Lyons Cole |date=January 1, 2018 |newspaper=Business Insider |access-date=February 1, 2018 |archive-date=February 2, 2018 |archive-url=https://web.archive.org/web/20180202012710/http://www.businessinsider.com/venmo-apple-pay-cash-vs-zelle-2017-12 |url-status=live }}</ref>
The two services are similar from the user's perspective; e.g., both services use email addresses and mobile phone numbers to identify recipients, but Venmo lacks the direct integration with banking institutions that Zelle has and Zelle money transfers are typically processed more quickly.<ref name=Alternative />
Starting in January 2018, Venmo began to offer a more rapid transfer option than its typical one- to three-day transfer service. Venmo charges a fee for the service, whereas Zelle-affiliated banks do not.<ref name=IntroducesFee>{{cite web |url=https://bankinnovation.net/2018/02/venmo-introduces-fee-for-realtime-transfers/ |title=Venmo Introduces Fee for Realtime Transfers |first=Tatjana |last=Kulkarni |date=February 1, 2018 |access-date=February 1, 2018 |website=Bank Innovation |archive-date=February 1, 2018 |archive-url=https://web.archive.org/web/20180201212602/https://bankinnovation.net/2018/02/venmo-introduces-fee-for-realtime-transfers/ |url-status=live }}</ref><ref name=Venmos25cent>{{cite web |url=https://www.engadget.com/2018/01/26/venmo-25-cent-instant-transfer-everyone/ |title=Venmo's 25-cent instant transfers are now available for everyone |website=Engadget |date=January 26, 2018 |access-date=February 1, 2018 |first=Rob |last=Lefevre |archive-date=February 1, 2018 |archive-url=https://web.archive.org/web/20180201101317/https://www.engadget.com/2018/01/26/venmo-25-cent-instant-transfer-everyone/ |url-status=live }}</ref> The Zelle network does not charge users a fee for money transfers.<ref name="AreThereFees">{{cite web |url=https://www.zellepay.com/index.php/support/are-there-any-fees-to-send-money-using-zelle |title=Are there any fees to send money using Zelle? |website=Zelle official website |access-date=February 1, 2018 |archive-date=February 2, 2018 |archive-url=https://web.archive.org/web/20180202130555/https://www.zellepay.com/index.php/support/are-there-any-fees-to-send-money-using-zelle |url-status=live }}</ref> Banks are allowed to charge a fee for Zelle transfers involving their accounts, but they generally do not.<ref name=FreeEasy>{{cite web |url=https://www.gobankingrates.com/banking/zelle-app-review/ |title=Zelle Review: Free and Easy Money Transfers |first=Alicia |last=Bodine |website=Go Banking Rates |date=February 1, 2018 |access-date=February 1, 2018 |archive-date=February 2, 2018 |archive-url=https://web.archive.org/web/20180202071901/https://www.gobankingrates.com/banking/zelle-app-review/ |url-status=live }}</ref><ref name="IntroducesFee" />
Both Venmo and Zelle payments to a registered user cannot be canceled (at least without the explicit permission of the recipient).<ref>{{Cite web |title=Cancel Payment |url=https://help.venmo.com/hc/en-us/articles/235171088-Cancel-Payment |access-date=November 15, 2020 |website=Venmo |language=en-US |archive-date=November 12, 2020 |archive-url=https://web.archive.org/web/20201112035416/https://help.venmo.com/hc/en-us/articles/235171088-Cancel-Payment |url-status=live }}</ref>
==Partners== The Zelle Network has more than 1600 financial institutions, including the network partners Mastercard, Visa and processor partners such as FIS, Fiserv, and Jack Henry & Associates.<ref name="zelle-participants">{{Cite web |title=Partners |url=https://www.zellepay.com/join-zelle-network/partners |access-date=August 6, 2023 |website=Zelle}}</ref>
== Criticism ==
The Zelle service has received negative publicity due to fraud incidents where bank customers’ accounts were compromised through social engineering tactics. In these cases, fraudsters set up Zelle accounts in the victims’ names and used them to transfer funds out of the victims’ accounts, often leaving the victims with limited practical or legal options for recovery.<ref name="vulnerable_2018_04_07_nytimes_com" /><ref name="instant fraud June 11, 2019 nbc">{{Cite web |first1=Vicky |last1=Nguyen |first2=Didi |last2=Martinez |first3=Joe |last3=Enoch |first4=Michelle |last4=Tak |title=Never used Zelle? Scammers can still use it to drain your bank account |url=https://www.nbcnews.com/business/consumer/instant-fraud-consumers-see-funds-disappear-zelle-account-scam-n1015736 |date=June 11, 2019 |access-date=August 6, 2023 |website=NBC News |language=en |archive-date=February 26, 2020 |archive-url=https://web.archive.org/web/20200226002544/https://www.nbcnews.com/business/consumer/instant-fraud-consumers-see-funds-disappear-zelle-account-scam-n1015736 |url-status=live }}</ref><ref name="new_victim_pool_2019_04_23_yahoo">{{Cite web |title=Zelle Fraudsters Find New Victim Pool: Consumers Who Don't Even Use Zelle |url=https://www.moneytalksnews.com/zelle-fraudsters-find-new-victim-pool-consumers-who-dont-even-use-zelle/ |first=Bob |last=Sullivan |date=April 23, 2019 |access-date=August 3, 2023 |website=Money Talks News |language=en-US}}</ref><ref>{{cite news |last1=Cowley |first1=Stacy |last2=Nguyen |first2=Lananh |title=When Customers Say Their Money Was Stolen on Zelle, Banks Often Refuse to Pay |url=https://www.nytimes.com/2022/06/20/business/zelle-money-stolen-banks.html |access-date=18 March 2024 |work=The New York Times |date=20 June 2022}}</ref> In one case, a Florida man pled guilty to defrauding victims of $250,000 by convincing them to make payments using Zelle to reverse purported fraudulent transactions.<ref>{{Cite web |date=2024-05-21 |title=District of Connecticut {{!}} Florida Man Admits Defrauding Zelle Users {{!}} United States Department of Justice |url=https://www.justice.gov/usao-ct/pr/florida-man-admits-defrauding-zelle-users |access-date=2024-07-11 |website=www.justice.gov |language=en}}</ref><ref>{{Cite web |last=Jenkins |first=Seb |date=2024-07-03 |title=Florida Man Pleads Guilty in Zelle Fraud Case - the Daily Muck |url=https://dailymuck.com/florida-man-pleads-guilty-in-zelle-fraud-case/ |access-date=2024-07-11 |website=The Daily Muck |language=en-GB}}</ref> In some cases, bank customers have been compensated by the banks involved, depending upon the bank and its policies and the specifics of the incident. Banks may use secondary confirmation methods such as SMS or otherwise place limits on newly created accounts and transfers to recently added recipients as a preventive measure.<ref name="the_hard_way_2018_02_16_techcrunch" /><ref name="how_scammers_2019_10_18_wcpo">{{cite news |url=https://www.wcpo.com/money/consumer/dont-waste-your-money/how-scammers-use-zelle-to-drain-your-bank-account |title=How scammers use Zelle to drain your bank account |last1=Matarese |first1=John |work=WCPO |date=October 20, 2019 |access-date=August 3, 2023 |archive-date=February 15, 2020 |archive-url=https://web.archive.org/web/20200215121451/https://www.wcpo.com/money/consumer/dont-waste-your-money/how-scammers-use-zelle-to-drain-your-bank-account |url-status=live }} <!-- also at: https://www.thedenverchannel.com/money/consumer/dont-waste-your-money/scary-bank-scam-uses-zelle-to-drain-your-account --></ref><ref name=wellsfargo>{{cite web |url=https://www.wellsfargo.com/online-banking/transfers/zelle-terms |title=Zelle Transfer Service Addendum to Wells Fargo Online Access Agreement |date=August 25, 2020 |access-date=January 5, 2020 |website=Wells Fargo official website |archive-date=February 11, 2020 |archive-url=https://web.archive.org/web/20200211054004/https://www.wellsfargo.com/online-banking/transfers/zelle-terms/ |url-status=live }}</ref> Shortly before releasing a critical report,<ref>{{cite web |url=https://www.warren.senate.gov/imo/media/doc/ZELLE%20REPORT%20OCTOBER%202022.pdf |title=Facilitating Fraud: How Consumers Defrauded on Zelle are Left High and Dry by the Banks that Created It |author=Office of Sen. Elizabeth Warren |date=October 2022 |access-date=October 5, 2022 |archive-date=October 8, 2022 |archive-url=https://web.archive.org/web/20221008231416/https://www.warren.senate.gov/imo/media/doc/ZELLE%20REPORT%20OCTOBER%202022.pdf |url-status=live }}</ref> Senator Elizabeth Warren criticized Zelle executives at a September 2022, Senate Banking Committee hearing, both for lack of refunds in cases of fraud, and lack of response to requests for statistics.<ref>{{Cite news |url=https://www.nytimes.com/2022/10/03/business/zelle-fraud-warren.html |title=Few Customers Get Refunds for 'Rampant' Zelle Fraud, Senator's Report Says |newspaper=The New York Times |date=October 3, 2022 |access-date=October 5, 2022 |archive-date=October 5, 2022 |archive-url=https://web.archive.org/web/20221005003426/https://www.nytimes.com/2022/10/03/business/zelle-fraud-warren.html |url-status=live |last1=Cowley |first1=Stacy |url-access=limited}}</ref>
== Regulatory action and fraud concerns == In December 2024, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Early Warning Services (EWS), the operator of Zelle, along with three major banks: Bank of America, JPMorgan Chase, and Wells Fargo. The lawsuit alleges that these entities failed to protect consumers from widespread fraud on the Zelle network.<ref name="CFPB_newsroom_2024-12-20">{{Cite web |date=2024-12-20 |title=CFPB Sues JPMorgan Chase, Bank of America, and Wells Fargo for Allowing Fraud to Fester on Zelle |url=https://www.consumerfinance.gov/about-us/newsroom/cfpb-sues-jpmorgan-chase-bank-of-america-and-wells-fargo-for-allowing-fraud-to-fester-on-zelle/ |access-date=2024-12-22 |website=Consumer Financial Protection Bureau |language=en}}</ref><ref>{{Cite web |date=2024-12-20 |title=Early Warning Services, LLC; Bank of America, N.A.; JPMorgan Chase Bank, N.A.; Wells Fargo Bank, N.A |url=https://www.consumerfinance.gov/enforcement/actions/early-warning-services-llc-bank-of-america-na-jpmorgan-chase-bank-na-wells-fargo-bank-na/ |access-date=2024-12-22 |website=Consumer Financial Protection Bureau |language=en}}</ref>
The lawsuit alleges that customers of the three named banks lost over $870 million to fraud throughout Zelle's seven-year history, claiming that the banks and Early Warning Services (EWS) rushed the platform to market without sufficient safeguards to better compete with rivals like Venmo and CashApp. Despite hundreds of thousands of consumers filing fraud reports, the suit contends that these individuals were largely denied help, as banks reportedly failed to conduct proper investigations or provide the legally mandated reimbursements for fraud and errors.
The CFPB sought to stop the alleged unlawful practices, secure redress and penalties, and obtain other relief. CFPB Director Rohit Chopra stated that the banks' failure to implement proper safeguards made Zelle "a gold mine for fraudsters".<ref name="CFPB_newsroom_2024-12-20" />
The CFPB dropped the lawsuit in March of 2025.<ref>{{Cite magazine |date=March 4, 2025 |title=CFPB drops lawsuit against JPMorgan Chase, Bank of America and Wells Fargo over Zelle fraud |url=https://www.cnbc.com/2025/03/04/cfpb-drops-jpmorgan-bank-of-america-wells-fargo-lawsuit.html |access-date=2025-07-22 |magazine=CNBC (Finance)}}</ref>
== See also == * TARGET Instant Payment Settlement, in the Eurozone * Wero (payment), in France, Belgium, Germany and The Netherlands * Unified Payments Interface, in India * New Payments Platform, in Australia * Interac e-Transfer, in Canada * Pix, in Brazil * QRIS, in Indonesia
== References == {{reflist}}
== External links == * {{Official website}}
{{Digital payment providers}} {{Interbank networks}} {{authority control}}
Category:Payment systems Category:Mobile payments Category:Payment service providers Category:Financial services companies established in 2017 Category:2017 establishments in Arizona Category:Payment networks Category:Online payments