America’s smaller banks aren’t happy with a plan to reimburse peer-to-peer payment scam victims.
Industry groups representing the country’s community banks and credit unions say these institutions could abandon partnerships with instant payment services like Zelle if forced to pay back customers who are victims of scams, the Wall Street Journal reported Monday (Dec. 12).
Last month, we reported that the seven major banks that own Zelle were at work on a plan to reimburse customers who were tricked into sending money, something Zelle has said happens very rarely.
But the plan to repay consumers will disproportionately impact smaller banks, as they have thinner margins than banks like Wells Fargo or PNC, said Rebecca Kruse, chief operating officer of Independent Community Bankers of America, a trade association that represents about 5,000 community banks.