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Ask HN: How Does Zelle Work?
I'm curious: Does it use ACH behind the scenes? The RTP network? Some other system? Thanks to anybody who can satisfy my curiosity!
- solarmist 4y agopatio11 could probably write an entire essay on this. (In fact, he might have, just not named it as such.)
- patio11 4y agoSomeday!
- BARZANi 4y ago
- denimnerd42 4y agoDepends on the implementation. Initially used ACH for settlement and now they are moving towards RTP. (https://www.earlywarning.com/press-release/early-warning-services-clearing-house-enable-zelle-payments https://www.earlywarning.com/press-release/early-warning-ser...)
- michaelrkn 4y agoThank you!
- bell-cot 4y agoAdvice: Avoid paying via Zelle. At $Job, we are a long-time customer of one of the large banks which owns Zelle. Said bank told us to avoid paying for anything via Zelle, unless we had very clear & easy legal recourse in case of fraud. The did not quite say "Zelle is only a better payment solution if you are cheating people"...but they came fairly close.
- wobbly_bush 4y agoCan you elaborate on what kinds of fraud? Like for ex. someone can transfer money from your account, or impersonating someone else, etc?
- idunno246 4y agoYou buy something online and pay with Zelle. Seller never ships it. You have zero recourse, there’s no chargebacks or anything like that, your money is gone. It’s the same as cash, and you should only use it with people you know. Same with Venmo, and cashapp
- bell-cot 4y agoThis. Or they ship you something that is defective, worth far less, etc., etc.
- exabrial 4y agoIs this because there is no clawbacks or something of that nature?
- yuppie_scum 4y agoThe banks just venmo each other afterwards to settle up.
- deleted 4y ago[deleted]