Small Banks Explore P2P Options
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.
The FRPA alert system distinguishes us from other groups by gathering and providing information to law enforcement, retailers AND financial institutions.more information
Your electronic library to help in fighting financial fraud for all of our partners.more information