Company: MCHB
Filing Date: 2025-05-09
Form Type: 425
Source: 0001518715-25-000085
Chunk: 24

Company: Mechanics Bancorp
Filing Date: 2025-05-09
Form: 425
Chunk 24
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, but we're about to. (laugh from the audience) It's been a hot topic and we were concerned with some of the fraud risk around Zelle. We've gotten over that; from talking to HomeStreet and understanding your experience, and I know there's smaller limits and we'll probably do the same thing, but I fully expect us to be turning Zelle on for our clients in the coming months. We were using a different, do you want to talk about what we did, Chris, with the app? Chris Pierce We previously had Fiserve payment method, and we've looked at it so closely. We got a little concerned when they'll change the operating rules for losses on transactions. So we were, we were taking a waiting approach, and also until just February of this year, you weren't required to be a Zelle bank to do zelle transactions. So this has necessitated this. We've had a lot of conversation around it, we will not be impacting HomeStreet customers and as C.J. said, we'll be turning on Zelle pre-systems conversion, probably right around the time of legal day one. Mark Mason That's great. The follow on question, which we have not done yet is Zelle for business. We think it's a natural transition, but, it's a different group of customers, it has its own control questions and so on. Chris Pierce Yeah, I think we want to, as you guys have been, be very thoughtful about limits related to things. Until you really know the patterns of a customer, it's hard to protect yourself. And this is a regulatory hot button, too, especially on the consumer side that if people get tricked into sending Zelle transactions for fraudulent transactions the regulators have taken up a position that. When you look at Reg-E losses for the deposit folks there are many hundreds of thousands of dollars every year in Reg-E losses and Zelle can quickly become that same thing. So I think it's all around limits, knowing your customer and applying appropriate limits. Mark Mason And we're pretty strict. Uur base limit is $300. But we will increase it for customers who have a bonafide use and we know them. Chris Pierce Once you get to a pattern of activity and you can say this is legitimate, what they should normally need, and that's the approach we're taking, and as C.J. said we got a little more comfortable with it by looking at and talking with your folks and had understanding your experience