Zelle is a money transfer service that allows you to send and receive money in a matter of minutes. The app doesn't charge any fees and can be a convenient solution, whether you use it with your friends and family or for your small business.
Below, CNBC Select outlines how Zelle payments work and what you need to know before you start using it.
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How to use Zelle
To set up Zelle, all you need is a bank account. You can access the service either through your financial institution's mobile app or website or through Zelle directly. You can enroll using your email address or phone number — this will be the information other users will need to send you money.
Zelle
Cost
Free (but check with your bank to ensure it doesn't charge an additional fee)
Transfer speed
Instant: transactions typically occur in minutes when the recipient's email address or U.S. mobile number is already enrolled with Zelle
Standout features
No need to download an extra app; Zelle is already included with most mobile banking apps
Links to accounts
Yes, to U.S. bank accounts
Availability
iOS and Android; must have U.S. bank account linked to an email address or compatible U.S. phone number
Security features
The Zelle app uses authentication and monitoring features to make your payments more secure
Terms apply.
Pros
- Fastest money-sending method (when both sender and recipient are signed up)
- Compatible with hundreds of U.S. banks and credit unions
Cons
- You can't link your account to credit card to use as payment method
- You can't send money to international bank accounts
- Recipients must sign up for Zelle to receive money (if the recipient doesn't enroll within 14 days, the payment will expire, and the funds will be returned to your account)
If your bank doesn't have Zelle integrated yet, you'll need to sign up directly through Zelle and also provide information for the debit card you'd like to use to make and receive payments.
Sending money with Zelle
Once you have set up your Zelle account, you can start sending money to other Zelle users. Here's how the process works:
1. Enter the recipient's phone number or email address
First, you'll need to input information associated with the recipient's Zelle account. Make sure the recipient is someone you know and trust. If you authorize a payment and later realize you have been scammed, you might not be able to get your money back.
2. Enter the transaction amount
Next, you'll be prompted to enter how much you want to send. Make sure that the amount falls within the transaction limits established by your financial institution.
3. Send the money
Review the transaction details to ensure everything is correct. Note that you can only cancel a payment if the user you sent money to hasn't signed up for Zelle. Otherwise, the payment will go straight to the recipient's bank account and can't be reversed.
Receiving money with Zelle
If you have a Zelle account, you don't need to take any additional steps to receive the money another user sent you. It will automatically be deposited into your bank account.
If you don't have a Zelle account yet, follow the link provided with your payment notification. You'll be prompted to select your financial institution. Then, simply follow the instructions to sign up and receive the funds.
If your bank or credit union doesn't work with Zelle, you can still receive the money through the Zelle app.
How does Zelle compare to other money transfer apps?
Zelle is free, quick and convenient, making it an excellent option for bank-to-bank transfers. At the same time, depending on your needs, a different money transfer app might be a better choice for you.
For example, Zelle doesn't offer transfers to or from international bank accounts. If that's an essential feature for you, look into Remitly, CNBC Select's pick for the best app for sending money internationally. Transfers usually take three to five business days and costs vary by country. Economy transfers are often free.
Remitly
Fees
Free to download. Exchange rate markup varies by country
Transfer speed
Express: Within minutes. Economy: 3-5 business days
Standout features
Home delivery is available in some countries
Payment options
Wire transfer, debit card, mobile wallet, Apple Pay, Google Pay
Delivery options
Bank account deposit, debit card, mobile wallet, cash pickup at partner locations
Transfer limits
No minimum and up to $100,000 in a single transaction
Terms apply.
Pros
- Over 350,000 cash pickup locations
- Waived fees and lower exchange rates for new customers
- Home delivery is available in some countries
Cons
- Extra charge for using credit card as payment
- Express transfer fees as high as $93.99 (for transfers of $9,000 or more)
Zelle also doesn't allow for credit card payments. Venmo, Cash App and PayPal, on the other hand, let you link your credit card. Note, however, that if you use a credit card as your payment method with any of these services, you'll be charged a processing fee.
Venmo
Cost
Free from a linked bank account, debit card or Venmo account; 3% fee if sending money by credit card
Transfer speed
Instant transfer to Venmo balance; 1 to 3 business days for free direct deposit or instant transfer to your bank account for 1.75% fee (minimum: 25 cents, maximum: $25)
Standout features
Venmo debit and credit cards; Users can interact with friends' payments (including with stickers and emojis). Venmo Teen Accounts available for kids 13 and up
Availability
Available for iOS and Android. Only compatible with U.S. bank accounts and phone numbers.
Security features
Multi-factor authentication when logging in, QR code reader to ensure you have the correct account before sending money.
Terms apply.
Pros
- Easy-to-use interface and large user base
- Can link to online merchants and apps like Uber and Seamless
- Free Venmo debit card
- Venmo credit card earns rewards in most popular spending categories
Cons
- 3% fee to use a linked credit card
- 1.75% fee for instant cashout
- Can't cancel sent payments
- No website interface
- Free debit card available
- Free ATM withdrawals with direct deposit of at least $300 a month
- Users can invest in stocks and buy and sell Bitcoin
- 3% processing fee if paying with a linked credit card
- Instant cash-outs subject to fee of between 0.5% and 1.75%
- Cash and savings balances are only FDIC-protected if you have a Cash App card (or sponsor an active sponsored account).
PayPal
Cost
Free to download the app; $0 to make purchases using a bank account or your PayPal balance; $0 to transfer money to friends and family; 2.9% + $0.30 transaction fee to pay business/contractor invoices
Transfer speed
1 business day or instant transfer with 1.75% fee
Standout features
PayPal Credit lets qualifying users pay for purchases over $149 over six months interest-free
Links to accounts
Yes, bank accounts and credit cards
Availability
iOS and Android; available in more than 200 countries and regions
Security features
Two-step authentication, data encryption, email confirmations for every transaction
See our methodology, terms apply.
Pros
- Widely used by individuals and businesses alike
- Flexible payment options with the ability to finance large purchases over six months interest-free with PayPal Credit (APRs vary)
- High transfer limits: send up to $60,000 in a single transaction (depending on eligibility)
Cons
- International transfers can get pricey ($2.99 to $4.99, plus 2.9% of the transaction amount and an additional fee based on location)
- Fee structure is more complex than other money transfer apps
Cash App can also be an attractive option if you're interested in investing. The app allows you to invest in stocks, as well as buy and sell bitcoin.
FAQs
- Is Zelle safe?
- Do you need a bank account to accept Zelle?
- What banks does Zelle work with?
- What is the monthly limit for Zelle?
Is Zelle safe?
Zelle is generally safe to use, thanks to its data encryption which ensures your data is protected. Plus, when you send or receive money using Zelle, you aren't sharing any sensitive financial details. Another user will only need your phone number or email address to send you money.
At the same time, the fact that Zelle transfers are quick and irreversible makes it an attractive target for scammers. Only send money to people and businesses you trust. There's no fraud protection in place to get your money back if you've authorized a transaction.
Do you need a bank account to accept a Zelle payment?
Yes, you need to have a checking or savings account at a bank or credit union to send or receive money using Zelle.
What banks does Zelle work with?
According to Zelle, the service is currently available in over 1,700 banking apps. To check if this number includes your bank, you can search Zelle's database.
Here are some examples of major banks that offer Zelle:
- Ally Bank
- Bank of America
- Capital One
- Citi Bank
- Discover® Bank
- JPMorgan Chase
- PNC Bank
- U.S. Bank
- Wells Fargo
Note that Discover® is currently not accepting new Cashback Debit customers but interested applicants can sign up to be notified by email when they can apply for an account.
What is the monthly limit for Zelle?
There's usually no limit to how much money you can receive with Zelle. But you're likely to face transaction limits when you send money, and they vary by the financial institution.
For example, Bank of America has three limits to how much you can send in a specific time period:
- Up to $3,500 in 24 hours
- Up to $10,000 in seven days
- up to $20,000 in 30 days
The bank also limits the number of transfers. Small businesses, Merrill Lynch and Private Bank clients have different transaction limits.
Chase, on the other hand, has a different set of limits for personal checking accounts:
- Up to $2,000 in a single transaction
- Up to $2,000 a day
- Up to $16,000 in a calendar month
To compare, Discover allows you to send up to a total of $600 per day but warns that it can "change your send limit, from time to time, based on a variety of factors."
As you can see, limits can vary broadly. Check with your financial institution to learn the restrictions for your account.
Bottom line
Zelle is a convenient and quick service for money transfers — and best of all, it's free. While it can be an ideal solution for sending or receiving payments from friends and family or paying your favorite small businesses, always exercise caution. Ensure that you know and trust the receiver and that the money is going where it's meant to go (as opposed to an impersonator's bank account). Remember: once you authorize a payment through Zelle, you're unlikely to get a refund even if you've been defrauded.
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