Reserve, a transaction and payment processing application related to fintech and cryptocurrencies, sent an email to its customers yesterday asking them to use their personal Zelle accounts to help them process payments. This has caused a certain amount of vigilance in the community, and now wary of third-party companies using their accounts to make payments on their behalf.
Reserve recommends customers to use their Zelle account for payment processing
Yesterday, an email sent by Reserve (a fintech/cryptocurrency exchange and payment processing company backed by Petro’s creator Gabriel Jimenez) asked to lend its business Zelle account for payment processing, which surprised many customers . The surprising email mentions providing incentives for this in an informal way, using these Zelle business accounts to provide “thousands of dollars” to companies helping the company.
Many users were shocked by this suggestion and took it to social media to protest and warn about the risks of lending their Zelle accounts to third-party businesses. In fact, the “Zelle User Service Agreement” clearly stipulates:
By accepting this service agreement, you agree not to attempt to use the service to request money to repay or recover overdue or default debts, thereby engaging in debt collection business; asking for money owed to others; or receiving any money owed by court orders …
It seems to be allowing third parties to collect debts beyond its scope or purpose.
However, all this shows that since Venezuela was introduced to Venezuela, the company has made tremendous development and is currently facing difficulties in coping with the volume of Zelle transactions using its payment service. Zelle is a powerful tool in Venezuela that is informally accepted and commonly used by most retailers in the country; this is why the reserve is so important to maintain a certain amount of fresh Zelle dollar inventory so that it can be used at any time.
Keep the answer to the shocked community
The news spread on social media, and Reserve responded to the question by sending another email to its customers, thus clarifying the company’s meaning to the previous email.In a new email, Reserve apologized to its community and explained The real purpose of the proposal. The new statement indicates that this is just the recruitment of new P2P liquidity providers from the backbone network or reserve partners. The reserve emphasizes:
“As a payment processor of the reserve, the participation process has not been made public because it is more restricted and strict compared to other P2P platforms, because we are a U.S. company subject to U.S. laws and hope to avoid this behavior by To maintain a stable quality of service, scams often appear in the P2P model.”
In any case, Venezuelans have previously been burned by the Bank of America for using Zelle as a payment method. Last year, Wells Fargo announced that they would block its Zelle service for Venezuelans, only to resume the service later. Even so, anything related to the use of Zelle will remind the Venezuelan community.
What do you think of the reserve fund proposal? Share your thoughts on this topic in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for reference only. It is not a direct offer or solicitation of an offer, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. The company or the author shall not bear any direct or indirect responsibility for any damage or loss caused or allegedly caused by the use or reliance on any content, goods or services mentioned in this article or related thereto.