Zelle claims – not happy with the merchandise

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Question:

We have had quite a few clients that willingly send funds through Zelle to purchase merchandise and never receive it. To us this is not a REG E claim since they authorized the transfer. Is this correct?

Answer:

You are correct. I always say it’s a Reg E claim to the consumer, but not a valid one. Satisfaction with a product or service is a credit card protection under Reg Z, but NOT an issue under Reg E. The consumer did the transfer – claim denied.