Help! Zip Pay won’t ‘pay’ me my own money

Hi Nicole. In June, I double-paid my Zip Pay account accidentally. Since then, I have been trying to get the money refunded and be done with Zip – I deactivated the account at the same time as I’m on a mission to fix my credit score. I wouldn’t even mind if they reactivate the account, so I can use the credit for my usual expenditure, but they are almost impossible to get on to. You wait for hours on hold, and the few times I have successfully made contact they say I’ve given them the wrong account number when I’ve also sent them a screenshot of my actual account. Once again – on August 11 – they told me it’s been processed but no change. It’s been two months. Could you please help get my (own!) money unlocked? Cheers, James.

It was quite a process to get your money “unzipped”, James but, after contacting the company on your behalf, I’m glad to report it is now in your bank account – and you have been awarded $100 compensation by Zip for your inconvenience.

The bigger issue here was the level of difficulty resolving a problem with such a digital service, a significant, global player in the fintech space.Credit: Louie Douvis

Giving the company the benefit of the doubt, I would say it was either a glitch or repeated human error; you’ve shown me that there have been multiple attempts to transfer out your money over the two months and all bounced back.

When I called and your case was escalated to head office, a Zip spokesperson told me that they had resolved it that day. However, it had not – another bounce.

What was really odd is that Zip seemed not to be able to see this. I had also, as you had, given the company your corrected account number.

The spokesperson said the business was reviewing your experience to “understand how we can be better”.

“At Zip, we are all about making sure our customers have good experiences with us. When issues do arise, we want to work with customers to sort their matters out quickly. Zip is always looking to improve.”

Fair enough, but the disappointment is that they paid the $100 compensation into your Zip account rather than depositing – at the same time as your reimbursement – it into your bank account. Cynically, this may be to counter to your goal to close your credit facilities and repair your credit score.

As you told me: “I would have preferred that compensation go into my [bank] account because, in the same conversation, they could have closed the Zip account.”

“I didn’t get an opportunity or option to say: ‘Please put that it into my personal account’ and be done with Zip.”

My advice? Part-pay whatever the purchase for the exact $100 – leaving not a dollar credit or a dollar owing – then push forward with your money credit score clean-up mission.

The biggest issue here appears to be the level of difficulty resolving a problem with such a digital service, a significant, global player in the fintech space.

I would be interested to hear from other readers if they have had similar difficulties with app-based institutions, particularly if you need help resolving one.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

Nicole Pedersen-McKinnon is the author of How to Get Mortgage-Free Like Me. Follow Nicole on Facebook, Twitter, and Instagram.