Zelle Fraud & USAA Rep Lied

Before making a zelle transaction I reached out to Usaa via chat and asked for their advice with a zelle payment. I was hesitant about the purchase which is why I inquired if I would have payment protection in case the seller was a fraud. They assured me that my transaction could be disputed with protection. So I proceeded and my worst fears came true. A sponsored ad on Instagram selling PS5’s took my payment and deleted the account. I screen shot my entire conversation with the usaa rep just to have the review completed with a hard denial saying their isn’t payment protection and the recipients bank failed to return the payment. The fact that I actually reached out to a bank rep for help on the matter and assured I could dispute the transaction if fraudulent ticks me off. If he knew the payment wasn’t protected he/she should have said that which wound have prompted me to rethink sending the payment this way. If USAA rep gives reassurance that all will be well what more should I think? Isn’t that the purpose of the bank reps? To provide guidance and assistance about purchase when needed. Horrible experience.
Please sign-in to reply


Dear @UWA_Student


I can certainly understand the situation and your frustration. I am sorry to hear you went through this fraud. There are no dispute rights for the actual item you are purchasing. Reasons that a Zelle transaction can be disputed are (not all the reasons), as examples: 

  • Incorrect account or account debited or credited
  • Duplicate Transaction (Send Money transaction sent/received more than once)
  • Send Money sent to incorrect recipient 

We will review this situation further for you and log your concerns. - Jesse 

@USAA - I agree with UWA Student that USAA should back up what the representatives tell the members.  I do understand that we receive "written" disclosures but USAA is constantly changing the rules so it is hard to keep up sometimes.  I believe that when any member calls USAA for guidance and information, the guidance and information should be on point.  If it is not, then USAA should make it right for the member.  There is nothing worse than being proactive in a situation only to receive incorrect information.