When you go out for lunch with some friends, it’s not uncommon to split the bill. Now, with modern technology, you’re able to send mobile payments to other people. There are lots of payments that are sent through Zelle and Venmo. These are a P2P (peer-to-peer) app that will allow you to send fast money for free.
There are several things that they both have in common, sending and receiving money quickly is one of them. However, Zelle is a service that moves money from linked bank account for free. But, they don’t hold money in your account. Venmo will fund your account that you will get unlimited options for. With Venmo, you’ll be able to use a debit or credit card with an additional fee. Read below for more information on what the difference is between them.
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Zelle & Venmo 101
With Zelle, they are an amazing utensil to use for you and your friends or families bank accounts. This works with banks that are partnered with this app. Zelle will be able to transfer money from one bank account to another in a matter of minutes free of charge.
Your money won’t sit in a holding account in Zelle, rather it can be withdrawn or deposited directly into your or your recipients bank account. Many banks are partnered with Zelle, and even if your bank isn’t with them, you’ll still be able to use Zelle for transferring smaller amounts.
Using Venmo, they are a more digital wallet that operates the same way as PayPal. Just build up your money in your Venmo and have it moved to other accounts. Or, you can spend or reload your Venmo balance. Unfortunately, some of your money transactions will come with charges.
Comparing Zelle & Venmo
Below are some of the features that both Zelle and Venmo both have to compare:
| Features | Zelle | Venmo |
| Payment/transfer options | Transfers between linked banks or credit union accounts. | Funds, credit, debit, and bank transfers. |
| Mobile app | Yes | Yes |
| Availablility | U.S only transactions | U.S only transactions |
| Fees when spending money with a bank transfer or account balance | Free | Free for the next business day transfers & 1% for instant transfers. |
| Credit card transaction fees | N/A | Free |
| Debit card transaction fees | N/A | Free |
| Transaction limitations | Check with your bank that makes the restrictions, max spending limit of $500 for account with banks that don’t partner with them. | $299.99 for weekly transaction limitations for unverified users. And $2,999.99 for verified accounts. |
| Bank account transfer times | N/A | Instant with a charge, or the next business day for free. |
| ATM withdrawal fees | N/A | Free MoneyPass withdrawals in network, a $2.50 fee for out of network withdrawals. |
| Cash reload on card | N/A | No |
| Security | Authentication and fraud monitoring | Data encryption |
Security for Zelle vs Venmo
Both Zelle and Venmo have security measures in place for their consumers protection. Zelle watches over transactions and uses authentication to guarantee that your bank information is safe and secure. With Venmo, they also looks over transactions to catch fraud and uses data encryption to ensure your personal information.
They are both pretty secure even though Venmo is seen to be more safe compared to Zelle since you are able to use a PIN and have a diverse authentication for the app.
Which One is Faster?
These money transfer apps are both considered to be pretty fast. But, in comparison, Zelle is faster than Venmo. Zelle will transfer money almost immediately, while Venmo takes about 1-3 business days unless you pay the 1% transaction fee to get an immediate transfer. This option is available in a matter of minutes.
Zelle transfers are pretty quick if both people have a service with their participating banks. Just put in the other persons email address or phone number to send the money. Transferring your money will go by much faster and easier. However, this can be a problem if you accidentally click the wrong person to send to. You will not be able to reverse the transaction between these accounts. But, if your recipient isn’t signed up with Zelle, there is a chance of you cancelling the transfer.
Sending Money to One Another
Unfortunately, you can’t send money to from Zelle to Venmo or vise versa. These services operate differently from one another. Venmo funds will be kept as a Venmo balance in your account so you can spend or transfer the money.
However, Venmo isn’t really a bank. Zelle was made to transfer your money from one bank account to a different one. Since Venmo isn’t considered a bank, Zelle will not be able to send money to each other.
Conclusion
A big difference between them is where the money is kept. Zelle will be limited since their service will only transfer money between bank accounts. Rather than getting money in your Venmo account, it can be withdrawn transferred or increased. Overall, when you compare both of these services, Venmo seems like the better option to go for. With Venmo, you’ll be able to build your account for free if you use MoneyLink ATMs nationwide to send money.
