Last week, Chase (NYSE:JPM) experienced a significant problem as some online banking accounts saw Zelle transfers apparently sent out twice. For some smaller accounts, this led to overdrafts and a negative balance – something most consumers and businesses wants to avoid.
After several hours of apparent confusion at one of the world’s largest banks by assets, Chase issued a statement via Twitter acknowledging the bug adding that it was working to reverse the duplicate transfers and reverse any affiliated fees.
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
This is not the first time a bank has experienced issues with Zelle, a payments and transfers provider used by thousands of banks in the US. CI received a note from a Zelle representative seeking clarification that the error was NOT due to anything Zelle did but the fault of BofA.
A spokesperson stated:
“Chase may have experienced issues with some of their customers’ Zelle transactions. This was not due to any problems with the Zelle Network.”
Traditional banks are in a battle with more nimble Fintechs. Events such as the one that impacted Chase account holders make one wonder if old banks are up to the Fintech task.