What is Zelle and how does it work?
Zelle is a free payments app that is easy to use and transfers money fast. This mobile peer-to-peer payment app lets you send money directly from one bank account to another. It’s a good way to send money to someone you already know.
To send money via Zelle, you don’t need to know the recipient’s bank account details. Instead, you can use their phone number or email address. Zelle will then send a text message or email to let them know there’s a payment waiting.
This mobile payment app was created by some of the big banks and it now partners with hundreds of U.S. banks. That means you can likely use Zelle’s money transfer service through your banking app. If not, you can access Zelle as a standalone app.
The Zelle app is easy to set up. You just need to enter your personal and bank information. You can then send money, request money, or split an expense with others. Each of these tasks is simple to do, and the app will walk you through the process. Plus, there are zero fees to use Zelle.
Our detailed Zelle review will help you learn more about its features and decide if it’s the right app for you.
There are no fees
Zelle is free to download and use. Unlike some other payments apps, Zelle won’t charge you to send or receive money. That said, it’s always a good idea to check with your bank to ensure it doesn’t charge any money service fees.
One reason Zelle sells itself as a secure money transfer app is that it doesn’t store your personal information. Your details stay secure with your bank and are never visible to Zelle. However, the downside to an instant money transfer is that you may not be able to cancel the transaction. That’s why you need to know and trust the person you’re sending money to.
Money transfers are fast
This payment option is a great way to send money quickly. In most cases, those who are enrolled with Zelle can receive a money transfer within minutes. That makes it even easier to handle your personal finance and money transfer needs.
Integrated with banking apps
Zelle is already integrated with many banking apps so you may not even need to download it separately. It lists hundreds of banking partners on its website and says 100 million people can access Zelle through their banks. Unlike other banking apps, there’s no middleman. The money will go straight to the recipient’s account.
No recipient banking info needed
You don’t need to have the recipient’s banking details on hand to send money. All you need to know is their phone number or email address. Zelle will text or email the recipient and handle the rest.
There are no receiving limits
You can receive as much money as someone’s willing to send you through Zelle as there are no receiving limits. But there are sending limits, which vary by bank. Other apps, like Cash App, have combined sending and receiving limits in place until users verify their identity.
You can send money, request money, or split purchases
Zelle lets you send money, request money, or split purchases with others. To split the cost of something, simply enter the total amount and choose who to split the expense with. Zelle will do the math for you.
What could be improved
There’s no fraud protection
One of the biggest concerns about Zelle is its lack of fraud protection. Unlike Paypal which will reimburse you if a product doesn’t arrive or isn’t as promised, Zelle does not protect buyers and sellers.
In fact, Zelle recommends you only use its service to send money to people you know and trust. Don’t use Zelle to send money to strangers. Be aware of potential Zelle scams, as they do exist.
You can’t transfer funds from a credit card
Zelle only supports bank transfers. If you usually use your credit card to send money to family and friends, this isn’t the right payments app for you. Be aware that you often have to pay a fee to make a credit card transfer with other payments apps. Plus, credit card issuers typically mark these kinds of transactions as cash advances, which are very expensive.
Only supports U.S.-based bank accounts
Zelle only supports U.S.-based banks and credit unions so it won’t be a good fit if you need to send money internationally. Other apps like PayPal and Xoom, work well for international payments.
You may not be able to cancel a payment
The only time you can cancel a Zelle payment is if the recipient has not yet enrolled. If the recipient already has a Zelle account, there is no way to cancel. Because of this, it’s good practice to always review payment and recipient details carefully. And it’s advisable to only use Zelle to send money to people you know and trust.
There are payment limits
Zelle limits the amount of money you can send. Each bank can set its limits, so you’ll want to check with your bank. If you’re using the Zelle app to send money from your bank, the weekly limit is $500.
View more information: https://www.fool.com/the-ascent/personal-finance/zelle-review/