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
On Zelle's secure site
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
On Remitly's secure site
Cost
Free to download; transfer costs vary by country and amount (economy are often $0, express transfers start at $3.99)
Transfer speed
3 to 5 business days
Standout features
Convenient delivery options, including sending money directly to trustedbanks,cash pick-up locations,mobile walletsor viahome delivery
Links to accounts
Yes, links to debit cards, credit cards and bank accounts
Availability
iOS and Android; for U.S. users sending to other countries only
Security features
Secure server with data encryption; two-factor authentication
Terms apply.
Pros
- Straightforward fee structure based on country and amount
- Affordable economy transfers (3 to 5 business days)
- High user approval rating in Google Play and Apple Store
- Large network of financial partners to send money for cash pick-up
Cons
- Extra charges for linking credit card as payment methods
- 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
On Venmo's secure site
Cost
No charge for sending money from a linked bank account, debit card or your Venmo account; a 3% fee for sending money using a linked credit card
Transfer speed
Instant transfer to Venmo balance; 1 to 3 business days for direct deposit (free) or instant transfer to your bank account for 1% fee ($10 max)
Standout features
Links to popular apps; social features to interact with your friends' payments (including stickers and emojis); Venmo debit and credit cards
Links to accounts
Yes, bank and credit cards
Availability
Only available in the U.S. and only compatible with U.S.-based bank accounts and phone numbers; compatible with iOS & Android
Security features
Multi-factor authentication when signing in; QR code readers to make sure you link to the correct user account before you send money
Terms apply.
Pros
- Widely used and therefore easy when splitting bills with friends
- Can link as payment method to popular apps including Uber, Uber Eats and Seamless
- Can use to pay at participating online merchants
- Users who opt-in can use a free Venmo debit card
- Can link to the Venmo Credit Card to earn rewards on most popular spending categories at authorized merchants (subject to 3% credit card fee for person-to-person payments)
Cons
- Charges a 3% processing fee when using linked credit card as a payment method
- Charges a 1% fee for instant cash-outs (to disburse funds immediately to your bank account with no waiting period)
- Not all users can currently link two separate Venmo user accounts to a joint bank account (Venmo is slowly rolling out this feature)
Cash App
On Cash App's secure site
Cost
Free to download and use basic services
Transfer speed
1 to 3 business days or instant cash-out deposits for a 1.5% fee (25 cent minimum)
Standout features
App allows users to invest money in individual stocks as well as buy and sell bitcoin
Links to accounts
Yes, bank accounts and credit cards
Availability
iOS or Androis
Security features
Data encryption and fraud detection technology; unique, one-time login codes, two-factor authentication
Terms apply.
Pros
- Free debit card for users who opt in
- Free ATM withdrawals if you direct deposit at least $300 per month (otherwise $2 per withdrawal)
- Cash App Offers provide discounts with certain retailers that are automatically applied to a purchase to help users save money (only one may be active at a time)
- App includes features to let users invest in stocks and buy and sell Bitcoin
Cons
- Charges a 3% processing fee when using linked credit card as a payment method
- Charges a 1.5% fee for instant cash-outs (to disperse funds immediately to your bank account with no waiting period)
- Cash App cash and savings balances are covered by FDIC insurance through a partner bank (up to $250,000) only if you have a Cash App Card (or are a sponsor of any active sponsored accounts)
PayPal
On PayPal's secure site
Cost
Free to download the app; $0to make purchases using a bank account or your PayPal balance; $0 to transfer money to friends and family; 2.9% + $0.30 transaction feeto pay business/contractor invoices
Transfer speed
1 business day or instant transfer with 1% fee
Standout features
PayPal Credit lets qualifying users pay for purchases over $99 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 cansign up to be notifiedby 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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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
