Zelle is a mobile payment app that will allow you to transport money from your account towards a different persons account in a matter of minutes even if the both of you bank with different ones. If it’s something like settling an IOU, splitting rent, or paying someone, it’s a quick and easy free system. Zelle’s objective is to make other companies like Venmo, Square Cash, and Google Wallet make a run for their money.
Zelle was designed by a groupe of large banks such as: Bank of America, BB&T, Capital One, JP Morgan Chase, PNC Bank, US Bank, and Wells Fargo. With these banks partnering up with Zelle, they have partnered with over 100 banks and credit unions that is available to over 95 million clients in the U.S. with their mobile bank.
If Zelle doesn’t have your bank listed on their network list, you’re still able to use their services with Zelle’s standalone app.
Zelle: How it Works
With Zelle, it’s a quick, simple, and protected way to send money in a matter of minutes to friends and family. You can do this through a trusted banking app or the Zelle app if your bank doesn’t offer these options yet. What makes Zelle stand out from Venmo is that Zelle will directly move from a specific bank account to another one. Most other banking transfers will require you to have the account number and take a couple days to process the transaction. This app will let their clients transfer money immediately with the recipient’s email or phone number.
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Important Notes
Remember to have the following notes in mind such as:
- You require an existing bank account in the U.S. to be able to send and receive money.
- Depending on the banks used, transfer limitations will differ.
- Zelle isn’t designed for purchasing or selling items, they won’t protect these money transfers.
- Protection is limited to when someone steals your Zelle account or password to send money. Sending money to the wrong person or transferring the wrong amount is not covered.
- Zelle will not support credit card transactions.
- Doesn’t not support international transfers.
Zelle: Step by Step
The Zelle standalone P2P app is similar to Venmo and is available for you to use. But, unlike Venmo, it requires you and the person you’re sending to to be members of one of the 30 partnered banks to be able to send money from the bank app. All you have to do is follow simple instructions to be able to send money using Zelle:
- Access Zelle. Download Zelle, if your bank or credit union isn’t with Zelle, then download the Zelle app to begin. If you have your banking app then you won’t need to download this.
- Pick a recipient. After you’ve signed up, you will need the recipient’s email or phone number to be able to process your transactions.
- Enter the amount. If the person you’re sending to is already a member, the money will immediately go to their bank account in minutes. However, if they aren’t a member yet, then they will get a notification telling them how to get their money transactions.
You will also be given the choice of requesting money transactions from your friends and family.
Zelle 101
There will be no fees for doing cash transfers, this will also include the standard “instant” transfer. However, depending on your bank account and/or debit card, your funding choices can be limited. Credit cards aren’t recommended with these apps it won’t be a good idea to link it. If you have an account with a bank that isn’t one of Zelle’s partners, then you will be limited to no more than $500 for a rolling 7 day period. People who already bank with one of their partners will be subject to their banks personal spending and receiving limitations.
Lets say hypothetically, Chase will limit your personal checking account transfer to about $2,000 for each transaction. Then no more than $2,000 a day and $16,000 in a calendar month. Chase Private Clients or Private Banking client accounts will be able to send no more than $5,000 a day and $40,000 in one calendar month.
Zelle is able to transfer money directly between United States bank accounts in a matter of minutes. However, if the recipient isn’t a member of Zelle than the process will be about 3 business days to access the money in their bank account.
Zelle Security
Since Zelle has become apart of your bank’s websites and mobile apps, they have the same protection that your bank uses and will be extended for your transactions. Their standalone app will be protected with Early Warning Systems, which is a risk-management company that has highly advanced monitoring and an ID verification to protect your money. This app will also present you with the choice of using a tough ID to log in, this will give you an additional protection for your money.
With all of these protections and security measures used, it would be a good idea to still follow top practices provided. Know your recipient when you transfer money with Zelle. It’s a good idea to transfer to people that you know well so reduce the risk of scams. Confirm the recipients information to transfer money. When you transfer money it will not be booked or disputed at all. If you send money to the wrong person, Zelle is not held accountable for getting your money back. In other words, check the email, phone number, and financial institute that matches. It will help avoid delays in the transferring process for you and your recipient.
Bottom Line
Zelle has one of the quickest processes to send and receive money from friends and family. If you or your bank aren’t with Zelle, then perks are restricted. They have cutting edge security systems in place to ensure your safety. Make an account today and transfer your money fast and easy. There are several perks that you’ll be able to benefit from once you become a member.