Do payment apps protect users from accidental payments?
Houston - Consumer Reports says 12% of people who use payment apps, like Zelle, Cash App, and PayPal, have sent money to the wrong person.
It happens easily if the sender has one incorrect letter or number in the address.
But what do you do if you receive that accidental payment? That question led to a very public stalemate between two Zelle users.
"I was so broken, I was so hurt," said Monica Cantu.
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Cantu says she received three Zelle payments in her bank account; $45, $190, then $1232, from a name she didn’t know. So she says she called her bank, Chase.
"They explained to me to not send any funds back. If someone were to call me, that it could be a scam," said Cantu.
That scam, says the Better Business Bureau, is known a the "accidental payment scam." It's been ripping off victims for years.
"What they're using, though, is a stolen credit card in order to make those payments," explains the BBB's Leah Napoliello.
"That person will notify them, saying that I accidentally sent you this payment, could you send the money back to me? And if they're unsuspecting, they just go ahead and do that, and then they are out the money," said Napoliello.
Cantu says the sender called her, so she said she told him to solve it with his bank.
"There is no way for me to reject the payment," said Cantu. "If you’re registered with Zelle, automatically that payment is accepted."
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Fearing it was a scam, Cantu blocked his phone number. Then came a series of Facebook posts by the sender on several community forums, explaining he accidentally sent Cantu the payments, that his bank says it's a civil case, and he hoped she would "give the money back." But the posts included Cantu's Facebook page, her work email, and phone number. And Cantu says she began receiving backlash from the public.
"I had someone call my work number and leave a voicemail saying, 'Give the money back, or you're going to effing get it.' I had a post calling me a thief, a rat, a liar," she said. She showed us the posts and voicemail.
The sender admits that he and two other men went to Cantu's home, as her doorbell cam shows, and left his business card.
Both Cantu and the sender filed police reports, but no charges were filed.
Then Cantu says she called her local bank branch, and this time, she said, "She tells me I can contact the claims department and ask them to reverse these transactions. I wasn’t even told that the first time. If I had been told that, I would have jumped on that immediately."
The sender removed the Facebook posts, and Cantu had Chase reverse the payments.
We asked Chase and Zelle what they're doing to help consumers in this situation. Both Chase and Zelle sent us statements saying that information on their websites encourages customers who suspect fraud to contact customer service.
Here's the problem. Several Zelle users we talked to say they have no idea what to do in this situation. Most say they would send the money back. But banks tell you not to send the money back, because that payment is coming from your money, not the sender's. If the sender's payment doesn't clear, you just get scammed.
"Consumer education is important, yes, but banks need to do more. It's not enough. I think the system itself should be made safer," said Carla Sanchez-Adams with the National Consumer Law Center.
Cantu says she just wants customers to be able to block or reverse accidental Zelle payments themselves.
"It broke me. But I told myself I am standing my ground. They're not going to bully me to do the wrong thing," she said.
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We are not naming the sender because no charges were filed in the case. He texted Cantu an apology and declined to be interviewed.
We asked other payment apps how they handle accidental payments.
Paypal and Venmo say they encourage users to block the sender and contact customer service.
Cash App says it gives users the option to tap the word refund and block senders.
Here are steps you can take to protect yourself:
- If you don't regularly use a payment app, disable it, so you cannot receive accidental payments.
- If you do get one, ask your bank or payment app to reverse it. Don't send money back yourself.
- If you send a payment to the wrong address, contact your bank. It's a good idea to send a dollar first and make sure it goes to the right account.