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While there are many peer-to-peer transfer services available, Zelle is the one that is most commonly integrated with banks. Read on to learn more about this money transfer service and what you should consider if you’re thinking about using it.
What is Zelle?
Zelle is a peer-to-peer, or P2P, money transfer service that allows individuals to send and receive money from each other via connected bank accounts. Most major banks and credit unions are part of the Zelle network, and once you enroll, you just need an email address or phone number to send and receive money electronically. Zelle is owned and operated by Early Warning Services.
» MORE: Banks that use Zelle: list and what to know
Does Zelle cost anything?
Zelle doesn’t charge any fees to send or receive money. The company recommends on its site, however, that customers double check that their bank doesn’t charge a fee.
Benefits of using Zelle
No cost. Zelle doesn’t charge any fees to send or receive money, and it's unlikely that your bank will charge you a fee to use the service. The company does, however, recommend checking with your bank or credit union to make sure there are no additional fees.
Fast money transfers. Zelle transfers typically arrive within minutes, so money can change hands quickly.
The convenience of going cashless. Daily activities like splitting utilities, gas money and restaurant bills become much easier and faster when you don’t have to run to an ATM every time.
Compatible with different banks and credit unions. If you have an account at Wells Fargo and you need to send your half of the rent to your roommate who uses Ally Bank, don’t worry. Zelle has a huge list of partner banks and credit unions that can send money to one another seamlessly. If your bank or credit union doesn’t use Zelle, you also have the option of using the Zelle app and connecting a debit card.
» MORE: Should you swap your bank account for a digital wallet?
Things to consider when using Zelle
Customers can’t use Zelle with international bank accounts. Both the sender and recipient must have U.S.-based bank accounts to use Zelle.
Zelle users need to be extra careful when sending payments. When using Zelle, the onus of protecting your money falls on you, the user. Zelle recommends that you think of the Zelle service like cash: Send money only to people you trust, make sure your recipient’s contact information is correct before you send money, and beware of scams. If you’re looking to send money to someone you don’t know and you’re wary that you might not get what you’re paying for, you might want to pay with a credit card instead, since credit cards typically have more built-in buyer protections.
Using Zelle typically requires a smartphone. If your bank or credit union offers Zelle, then you should be able to use a desktop web browser to access your bank account and use the service. If your bank or credit union doesn’t offer Zelle, then you’ll need to use the Zelle app, which requires a smartphone.
You can’t connect a credit card. Venmo — a competing P2P transfer service — allows users to link credit cards and use them to pay people for a 3% fee. The ability to use a credit card may be pricey, but it can also be convenient if you don’t have enough liquid cash in your bank account.
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How do I enroll in Zelle?
To use Zelle, both the sender and recipient must enroll in Zelle through their bank account or with the Zelle app. This process is fairly simple: Zelle will ask for basic information like a phone number and/or email account and walk you through the enrollment process. If you’re using Zelle through your bank, your accounts will be linked. If you’re using the Zelle app, then you’ll have to connect a debit card.
How do I send, request and receive money in Zelle?
Sending and requesting money. You can send or request money to or from another Zelle user by entering their email address or phone number.
Check with your bank about how much you’re allowed to send at once. Some banks might put lower limits on sending to first-time recipients and then increase those limits once they become an established recipient.
Receiving money. When receiving money with Zelle, the funds should appear in your account in a matter of minutes.
FAQs
You can send, request, or receive money with Zelle®. After you've enrolled, simply add your recipient's email address or U.S. mobile number, the amount you'd like to send or request, review and add a memo, and hit “confirm.” In most cases, the money is typically available in minutes1.
What is the downside of using Zelle? ›
Unlike many money transfer apps, Zelle does not charge a fee for instant transfers. Zelle transfers are generally secure, but the app does carry risks, including the risk of glitches at banks that can affect money transfers.
Can I use Zelle without a bank account? ›
Zelle requires a bank account to send and receive money, but you may be able to sign up with select prepaid Visa or Mastercard debit cards. Unfortunately, not all prepaid debit cards will work with Zelle, but you'll have the best luck with cards that requires a phone number, billing address, and email address.
Can you use Zelle with any bank? ›
Important: While you can typically use Zelle® with people at different banks, at least one person must have a bank in the Zelle Network in order to send and receive money.
How do I convert Zelle to cash? ›
How To Transfer Money From Zelle To Cash App
- Step 1: Link Your Bank Account to Cash App. ...
- Step 2: Link Your Bank Account to Zelle. ...
- Step 3: Transfer Money from Zelle to Your Bank Account. ...
- Step 4: Transfer Money from Your Bank Account to Cash App. ...
- Step 5: Access the Transferred Funds in Cash App.
Zelle® doesn't charge a fee to send or receive money. We recommend confirming with your bank or credit union that there are no fees for Zelle® transactions.
When should you not use Zelle? ›
Beware of payment scams: If an offer sounds too good to be true, it probably is. For example, a stranger selling online concert tickets at a steep discount and insisting you pay with Zelle® may be a scam. Zelle® does not offer purchase protection, so pay it safe. Only send money to people you personally know and trust.
Why do people want to use Zelle? ›
Zelle® is a fast, safe and easy way to send and receive money with friends, family and others you trust - no matter where they bank1.
What's safer, Zelle or Venmo? ›
Both of the payment services are decently safe, have user-friendly interfaces, and allow you to conveniently send money when you need it. Zelle stands out from Venmo with its absence of instant transfer fees, but it also cannot be used as a wallet. So, if you need a wallet function, you should go for Venmo .
Can you send Zelle to someone who doesn't have it? ›
What if the person I'm sending money to hasn't enrolled with Zelle®? If the person you're sending money to hasn't enrolled yet, they'll receive an email or text notification letting them know you've sent them money. They'll be guided through a few simple steps to get enrolled.
But note that unless you make your transactions private or friends-only, everyone on the Internet can see the details of your transfer.
How long does it take to receive money from Zelle? ›
Money sent with Zelle® is typically available to an enrolled recipient within minutes. If it has been more than three days, we recommend confirming that you have fully enrolled your Zelle® profile, and that you entered the correct email address or U.S. mobile number and provided this to the sender.
Does Zelle report to the IRS? ›
Zelle® does not report any transactions made on the Zelle Network® to the IRS, even if the total is more than $600. The law requiring certain payment networks to provide forms 1099K for information reporting does not apply to the Zelle Network®.
What are the pros and cons of Zelle? ›
Pros of Zelle
- Fast and Secure Peer-to-Peer Transfers. ...
- Free Transfers with No Hidden Fees. ...
- Convenience for Everyday Activities. ...
- Bank-Backed Security. ...
- Seamless Integration. ...
- Professional Interface without Social Elements. ...
- Limited Social Interaction. ...
- Restricted to Known Parties.
: Bank of America, Capital One, Chase, PNC, Truist, U.S. Bank and Wells Fargo. Is Zelle safe?
Do you have to cash out on Zelle? ›
Zelle® enables money to be sent directly from bank account to bank account instead of holding funds in a third-party account. There's no need to cash out. Zelle® partners with over 1,000 banks and financial institutions, and account holders at banks that offer Zelle® can access Zelle® through their mobile banking apps.
What happens if you Zelle someone who doesn't have Zelle? ›
If money is sent and the recipient isn't enrolled with Zelle, they'll get a notice with instructions on how to register. If you sent funds to their mobile phone number, they'll get a text message.
Do I need the Zelle app to receive money? ›
The Zelle® app is only available to users whose banks and credit unions do not offer Zelle® directly to their customers. Because your financial institution offers Zelle®, you can use it directly through your banking app (and online banking, if available) to send and receive money.
Can I use Zelle with my debit card? ›
If you're already using the Zelle® app and enrolled with an eligible Visa® or Mastercard® debit card, you can continue using Zelle® with friends, family and others you trust.
