Why Is Zelle A Red Flag?

[tlawler]

I bet that baby is a handful in .40 cal.
A friend wanted to sell me his Glock 23 several years ago. Price was right but my hands were too big for the small frame and caliber combo.
Have you tried it?

You should try one in 10mm

 

[moralem]

Zelle will also report your transactions to the IRS as income if you exceed a certain threshold. Not sure what that total amount is.


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[Tom S.]

From MidwayUSA...

While they do not support the industry, they do nothing to support the "other side". As Lee pointed out, their decision not to allow payments for firearms and certain parts was driven by lawyers, not anti gun feelings.

There is nothing wrong with refusing to use someone's services if your refusal is based on facts. If you do not wish to use PayPal because they will not let you buy a gun using their service, so be it. But using the excuse that they are anti-gun is not accurate.

 

[Paul in Nevada]

When I used to trade in C&R's frequently, I always insisted on USPS money orders. There are a lot of advantages to a money order. It represents cash in the hand. It can be tracked as to when it was cashed and it can be replaced if lost. The downside of course is dealing with The Post Office in person.
Zelle isn't much different than PayPal for person to person transactions. The seller is always going to insist that you use the "friends and family" option and leave the comment field blank. You have no recourse if the other party takes your money and fails to deliver.

 

[THE PILGRIM]

My CU signed up for ZELLE and promoted it pretty heavy.
But the published concerns and warnings plus no real need,
Have not used it, don't ever intend to.
Even the ZELLE site discusses Scams.
Zelle(R) Safety | Zelle

 

[walter o]

Zelle red flag

Zelle also refuses to transfer money for the purchases of firearms
same as PAYPAL

 

[Justin T]

There are scammers out there who have figured out how to use Zelle to defraud sellers. I don't know all of the machinations there, but I have seen a couple of scammers try it on me. Of course, the key is recognition and denial of info, followed by reporting the issue.

OTOH I use zelle for certain small dollar transactions with people I trust, and find it works very well. I like it.

 

[Jon651]

Correct me if I'm wrong,

The person who wrote the check knows when it clears. You only know you deposited it & the bank gave you credit for it (because you had funds to cover it).

Exactly when that paper check actually clears at the originating bank varies. One, two, three days or more? (My bank didn't give me a reassuring answer.)

You only know if it does not clear & your bank withdraws the previous credit at some point down the line.

So how do you, as the recipient, know it cleared unless your bank had put a hold on those funds, until they get paid, & then releases the funds to you?

.

It used to be that banks and the financial clearing houses had to have physical possession of the check in order for it to be processed. I have seen people now write checks in the grocery store, it gets scanned right away, and the cashier hands the check right back to them. It all depends on how the retailer is set up. I've done this and checked my bank account online and had the check clear before I even got home.

If a seller wants the most protection they simply stipulate that they won't ship the item until payment has cleared. After that a buyer can challenge it all he wants but once the funds are gone, they are gone regardless of how they were moved to the buyer's hands.

If a buyer wants the most protection, the only way is to use a credit card so a bad sale can be disputed. As far as I know, you can't dispute a sale if you paid by cash, check, money order or funds transfer. Once the money is gone, it's gone and your only option is to file a police report.

 

[Sevens]

There are scammers out there who have figured out how to use Zelle to defraud sellers.

Unless you're talking about something I've never seen (and show an example please) these crooks are definitely not defrauding any sellers.

These guys are building full websites for a fake business that has no inventory whatsoever but promises to ship you goods when you pay them via Zelle (and other) and they stick out like a sore thumb, mostly because they:

—won't accept traditional credit cards
—show tons in stock of an item that you cannot find almost anywhere in supply
—have a crazy low price

 

[DWalt]

Zelle will also report your transactions to the IRS as income if you exceed a certain threshold. Not sure what that total amount is.


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The IRS trigger is $600 aggregate sales in one year. Over that, you will get a 1099.

 

[pawngal]

Unless you're talking about something I've never seen (and show an example please) these crooks are definitely not defrauding any sellers.

These guys are building full websites for a fake business that has no inventory whatsoever but promises to ship you goods when you pay them via Zelle (and other) and they stick out like a sore thumb, mostly because they:

—won't accept traditional credit cards
—show tons in stock of an item that you cannot find almost anywhere in supply
—have a crazy low price

Like one I saw Colt Python 3 in for $1300. Sure......

 

[Justin T]

Unless you're talking about something I've never seen (and show an example please) these crooks are definitely not defrauding any sellers.

These guys are building full websites for a fake business that has no inventory whatsoever but promises to ship you goods when you pay them via Zelle (and other) and they stick out like a sore thumb, mostly because they:

—won't accept traditional credit cards
—show tons in stock of an item that you cannot find almost anywhere in supply
—have a crazy low price

That scenario certainly exists. I have seen attempts to defraud using zelle for local purchases over a local classified ad placed on a popular social media site.

 

[doublesharp]

The IRS trigger is $600 aggregate sales in one year. Over that, you will get a 1099.

Not according to Zelle's website.

Does Zelle(R) report how much money I receive to the IRS?


Does Zelle® report how much money I receive to the IRS?
These FAQ are for informational purposes and only relate to the Zelle Network®. Zelle® does not provide tax advice. If you have any tax questions about your individual situation, please consult a tax or legal professional.

Does Zelle® report how much money I receive to the IRS?

Zelle® does not report transactions made on the Zelle Network® to the IRS. The law requiring certain payment networks to provide forms 1099K for information reporting does not apply to the Zelle Network®.

Does Zelle® tax me on money that I receive?

Zelle® is a payment platform. Zelle® does not impose taxes on transactions made on its network. If payments you receive on the Zelle Network® are taxable, it is your responsibility to report them to the IRS. If you have any questions about your tax obligations, please consult with a tax professional.

Will Zelle send me a 1099K form?

Zelle® does not issue 1099K forms for payments made on the Zelle Network®.

Does Zelle® report any payments I receive over $600 to the IRS?

Zelle® does not report any transactions made on the Zelle Network® to the IRS, even if the total is more than $600. The law requiring certain payment networks to provide forms 1099K for information reporting does not apply to the Zelle Network®. If payments you receive on the Zelle Network® are taxable, it is your responsibility to report them to the IRS. If you have any questions about your tax obligations, please consult with a tax professional.

I have a small business account. Will Zelle® report how much money I receive to the IRS?

Eligible small businesses can use Zelle® to send and receive money. Zelle® does not report transactions made on the Zelle Network® to the IRS, including payments made for the sale of goods and services. The law requiring certain payment networks to provide forms 1099K for information reporting on the sale of goods and services does not apply to the Zelle Network®. If payments you receive on the Zelle Network® are taxable, it is your responsibility to report them to the IRS. If you have any questions about your tax obligations, please consult with a tax professional.

 

[BLUEDOT37]

Online banking is your friend.

Lol, and you're assuming I don't have & use on-line banking??

I currently have two banks with checking accounts on each.

I know when my checks clear.

Nobody tells me when a transaction going the other direction clears.

.
.

I have seen people now write checks in the grocery store, it gets scanned right away, and the cashier hands the check right back to them. It all depends on how the retailer is set up. I've done this and checked my bank account online and had the check clear before I even got home.

I understand that much of the system is different from years ago but your example is of a check you wrote & then saw that it cleared as the buyer & originator of the check.

We're talking as the Seller & recipient of the check you don't have that visibility, only the Buyer & originator of the check does, & I'm not going to ask him to tell me when his check cleared his bank & apparently my Bank(s) don't share those details either with me.

So again, how many days do you hold shipping until the "check clears" if you're willing to accept a personal check for payment?

.

 

[Onomea]

Per my post above, the way my BOA checking account works is when a paper check is deposited into my account (including one I have taken a photo of and deposited using the BOA app), it will initially say "pending*" when I look at my account on line. Pending means a deposit hold is in effect until BOA confirms it has received funds. Once this is confirmed, the "pending" notation disappears.

So, if you are a seller with a BOA checking account, and you deposit a paper check via the app or by going to your BOA branch, by later checking your account on line for the absence of the "pending" notification, you can confirm the cash has been received.

I assume other banks work this way, too, but I only use my BOA account this way so don't know.

*Pending or processing. Don't recall which.

 

[ladder13]

Anyone here buy the gun?

 

[Jeromejr]

I made a mistake and hit the yes button, minus $2000.00.
Zelle refunded it !

 

[Beemerguy53]

I do not have accounts with Paypal, Zelle, Venmo, or any of the other transfer services. If I buy something online and the seller uses only Paypal, I will check out as a guest, but for the most part I use a credit card to pay for online purchases whenever possible, and send a Postal Money Order or a check when it isn't possible.

Credit card companies will go to bat for you if you are victimized in a fraudulent transaction, and the US Postal Service will enforce the law, if necessary, related to Postal Money Orders...

 

[THE PILGRIM]

Funny thing about the USPO.
When my Silver Libertad showed up not showing up, it appears that the PO lost it.
In fact they acknowledged that via Email.
After a while eBay reimbursed me.
I use PayPal with eBay, but I pay it via Credit Card.

 

[H Richard]

I'm with Beemerguy53, I'm old, old fashioned, and think cash is king. I use a credit card or Postal Money order. If you don't want to accept either of those, I'll buy elsewhere.