Zelle, a transfers and payments service utilized by many big banks as well as hundreds of smaller ones, stumbled once again today. Some customers woke up to discover that transfers completed via their Chase (NYSE:JPM) account – may have been sent twice. The duplicate transfers pushed some accounts into negative balances due to overdrafts caused by the Zelle bug.
While it is not clear as to the cause of this most recent calamity, Chase support was swamped with calls from irate customers – unable to provide any immediate answers. A call to the Chase Escalation team generated more confusion as internal communication appears to be lacking as the representative had few answers for the problem.
CI reached out to Chase for a comment on the Zelle issue, and a spokesperson shared the following statement:
“We’re sorry that some customers are seeing duplicate transactions and fees on their checking account. We’re working to resolve the issue and will automatically reverse any duplicates and adjust any related fees.”
Later in the morning, Chase Support posted the following Tweet:
We’re sorry that some customers are seeing duplicate transactions and fees on their checking account. We’re working to automatically reverse any duplicates and adjust any related fees.
— Chase (@Chase) June 2, 2023
One customer who experienced a negative balance claimed to have experienced a “panic attack” due to the missing funds. Another claimed they could not shop for food for their family.
I woke up to see my bank account charged $6200. This has left me negative. I can’t buy groceries for my family.
— Gabrielle (@blondieismyname) June 2, 2023
The Zelle service was set up to compete with the rise of Fintech services that compete with establishment banks. The service has garnered significant traction, with thousands of banks offering Zelle for near instant payments and transfers.
Earlier this year, CI wrote about Zelle having issues with Bank of America customers – with Zelle pointing the finger of blaime at the bank. The Zelle ride has been rocky at best, including allegations of fraud to the point the service has caught the ire of Senator Elizabeth Warren, someone who is no fan of big finance.
.@BankofAmerica and @Zelle are apparently failing customers again, with money somehow disappearing from accounts. This should be fixed immediately and customers should be compensated. I’ve called out serious fraud issues on Zelle and this is their latest failure.
— Elizabeth Warren (@SenWarren) January 18, 2023
While Chase says it will make customers whole, the impact on credibility may cause more damage to Chase as Zelle is viewed as a half-baked service, tarnishing the reputation of one of the world’s largest banks.
Meanwhile, some Fintech industry insiders are calling for greater competition in the banking sector, telling policymakers to allow Big Tech to move into banking – ostensibly to school old banks on service and innovation.
I’ll literally $-1600 in my account right now because you took my rent out twice. I can’t buy groceries or pay bills
— hekate🕯 (@pytheiia) June 2, 2023