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While the standalone Zelle application may be discontinued, the Zelle payment network remains accessible via your bank if it’s a participant. However, if you’re a Chase customer, a recent policy change warrants your attention.
Effective March 23, 2025, JPMorgan Chase maintains the authority to impede Zelle transactions if they are suspected to have originated from social media platforms. This measure is intended to shield consumers from fraudulent activities, which have reportedly cost victims hundreds of millions of dollars.
Fortunately, several alternative methods exist for digital money transfers. Here’s what you should know.
Chase’s Rationale for Blocking Zelle Transfers from Social Media
Digital payment platforms like Zelle, Venmo, and Cash App have inadvertently become avenues for scams, often targeting social media users. Chase reports that almost half of the fraud incidents reported between June 1, 2024, and December 31, 2024, originated from social media activity.
A lawsuit filed in December 2024 by the Consumer Financial Protection Bureau (CFPB) alleged that JPMorgan Chase, Bank of America, and Wells Fargo customers collectively lost over $870 million through Zelle transactions since its launch in 2017. Although the CFPB later withdrew the suit, it emphasized the risks consumers face when using the digital payment app. Since Zelle does not provide purchase protection, recovering funds once sent is often impossible.
Chase anticipates its new policy will proactively prevent fraud. The updated Zelle Service Agreement will allow the bank to reject or halt payments believed to have originated on social media. The bank might also defer or hold payments temporarily, requesting information to confirm the transaction, such as the identities of the sender and recipient, and details of the payment.
Alternative Transfer Methods for Chase Customers
Chase customers can leverage various secure methods for sending and receiving funds through their Chase accounts. Chase collaborates with several digital payment services, including PayPal, Apple Pay, Google Pay, Samsung Pay, and Paze.
It is always advisable to refrain from sending money via a payment app to individuals you do not know or trust. Familiarizing yourself with common scam tactics is also crucial for avoiding fraud.