AutoNation dealer….offered to pay me for my used car with Zelle

[mike_g]

According to this Forbes article
https://www.forbes.com/advisor/money-transfer/what-is-zelle-how-does-it-work/
"Zelle uses the Automated Clearing House (ACH) payments system to speed payments between U.S. bank accounts."

hmm. that's odd since Zelle transfers show up immediately, and ACH doesn't actually clear for at least 1 day. The benefit of Zelle is the bank knows the funds are actually coming, so maybe there is some magic that shows the deposited funds it in your account immediately even when the ach doesn't clear the bank until later, similar to depositing personal checks vs cashier's checks.

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[sobeit69]

So in OP's situation, if there was a bank limit of $5k, the $20k payment from the buyer would process and sit in his Zelle account, but they'd only be able to transfer $5k from Zelle to the bank at a time?

Or is Zelle tied even closer to the bank than that, and his $20k payment just wouldn't process at all - or worse, only process $5k with $15k remaining with the buyer? Sounds like a potential mess imo.

That’s what I’m wondering about that limit. I have chase…so I’m gonna go check now

 

[sobeit69]

So chase says there are no limits on how much you can receive…
there is a limit of 2k per day that one can send from their account.

 

[Tread4Lo]

As I said, just check with your bank to see if they (your bank) have any limits. It wouldn't be good trying to received $20k and the bank has a $5k limit and the transaction get denied.

I'd rather ask the question, make sure there isn't an issue. If there is, you get it rectified before the transaction tries to happen.

 

[CarbonSteel]

* It could depend on what's behind that asterisk...

 

[unsavory]

A lot of very paranoid people in this thread. Are we seriously concerned that one of the largest used car dealers and one of the largest money transfer services are going to scam the OP somehow?

Should be easy enough. Just have them Zelle the money to your account, and you verify receipt of funds before handing over the keys.

Boom.

 

[Bill_BCNtoNY]

A lot of very paranoid people in this thread. Are we seriously concerned that one of the largest used car dealers and one of the largest money transfer services are going to scam the OP somehow?

Should be easy enough. Just have them Zelle the money to your account, and you verify receipt of funds before handing over the keys.

Boom.

agreed - you can check the receipt of the funds on the spot which to me is even better than cash (much more difficult to fake this than printing fake money).

You can call/check with your bank ahead of time to confirm your account can accept the incoming $20k, but having worked in the industry (not too proud of that personally), I’d be surprised if you manage to get a straight, correct and well-informed answer.

 

[speedymart]

I'd personally just get a check cut instead. Zelle is legit, but it's kind of weird for a dealer to be using it

 

[JourneyGirl]

I love Zelle and use it as often as possible for as many things as possible - it's fast, it's secure, it's bank to bank, money available immediately.... and the best part is, the "income" through Zelle is not reported to the IRS so you don't have to jump through all the hoops at tax time to explain why you got the money!!!

 

[Mudduck]

I love Zelle and use it as often as possible for as many things as possible - it's fast, it's secure, it's bank to bank, money available immediately.... and the best part is, the "income" through Zelle is not reported to the IRS so you don't have to jump through all the hoops at tax time to explain why you got the money!!!

This! I love Zelle. I used to see contraband of the green kind and only accepted Zelle as payment.

 

[AFD]

I love Zelle and use it as often as possible for as many things as possible - it's fast, it's secure, it's bank to bank, money available immediately.... and the best part is, the "income" through Zelle is not reported to the IRS so you don't have to jump through all the hoops at tax time to explain why you got the money!!!

This! I love Zelle. I used to see contraband of the green kind and only accepted Zelle as payment.

So.. you guys are saying that Zelle is good for selling drugs and tax evasion?

 

[Jeepskate512]

Businesses do not have a limit on zelle. As i stated earlier, i sent a customer $200k in one payment.

I would definitely like to sign up for one of these transfers. Let me know what info you need to send me 200k lol.

 

[musicforme]

A lot of very paranoid people in this thread. Are we seriously concerned that one of the largest used car dealers and one of the largest money transfer services are going to scam the OP somehow?

Scam, probably not. Possible issues with a large transaction sent electronically, its possible.

I live maybe 15 minutes from the Zelle HQ in Scottsdale (real name of the company is Early Warning) and know a few people who have worked there over the years. I applied for a couple positions there earlier in the year when I was between jobs. I know the company well.

I've worked in IT/Cyber in banking and financial services for the last 20+ years. I've attended more Anti Money Laundry (AML) training than I care to count. If OP had an immediate need to access that money, I would be concerned about the potential of it being flagged under AML. If that were to happen, the bank legally cannot tell you why. Based on the need and immediacy of the need of the funds, I would possibly go a more traditional route.

 

[TheBirdie72]

Here’s another thought… If they offer to pay you via Zelle, maybe Zelle is the name of the female scam artist they have working in Finance?!

“Oh don’t worry! Zelle will pay you Tuesday! ”

What Zelle looks like now:

What she really looks like:

Don’t fall for it!

 

[COJeeper]

Zelle is safe, I use it all the time. VENMO, on the other hand……

https://abcnews.go.com/amp/US/wireS...t-apps-vulnerable-financial-watchdog-99775898

Also, I’d take an electronic transfer over paper check any day. An amount that large probably won’t be able to do the remote picture deposit so now you have to make a trip to the bank and they may put a hold on your funds, annoying. Think about if I was going to pay you $30k for your vehicle. You don’t know me, would you want a paper check that could be counterfeit or an electronic deposit that you can see right away? Paper check, you’ve got it and I’m gone with your ride half way to China before you know what’s up! Have you never seen the movie, “Catch Me If You Can”???

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