What is Zelle and how does it work

Zelle® is a super popular peer to peer payment service in the US, which is predicted to have close to 80 million users by 2025. But if you’re new to Zelle you’ll probably be asking: what is Zelle and how does it work?

If you’ve been thinking about registering with Zelle but you’re not sure whether it’s worthwhile, read along as we dive into the how-to’s and safety considerations involved in the process.

As Zelle can’t be used for international transfers, we’ll also quickly touch on Wise as a smart, simple and low cost transfer tool.

What is Zelle?

Zelle is a mobile payment app that simplifies the payment process and allows for domestic peer-to-peer transfers to happen within minutes. But it's not only for consumers, as a business you might want to know more about the Zelle business account.

If you’re looking to make fast USD transfers, then Zelle might just be for you. On top of this, the app is supported by thousands of banks.¹

If your bank uses Zelle, then you can register for it through your mobile banking app. If not, you can simply download the Zelle app.²

See if Zelle is the best for you: Zelle vs PayPal; Popmoney vs Zelle; Zelle vs Venmo

How does Zelle work?

If you’re looking to use Zelle but are wondering how it works, then the first step is to see if your bank uses Zelle.

• If they do, you can enroll through your bank’s mobile banking app or website, simply by entering your phone number and email address.

• If your bank doesn’t offer Zelle, then all you have to do is download the Zelle app separately and sign up through it.

Once you’ve registered for Zelle, you can make your first transfer. For this, all you need is the recipient’s phone number and email address.

When you’ve confirmed the payment, they’ll get either an email or text with a link to accept it. There are different scenarios for the recipient accepting the payment:

• If the recipient is already a Zelle member, then the money will be in their account in minutes

• If the recipient is not a Zelle member, but their bank uses Zelle, then they can register for it via their mobile banking app

• If the recipient is not a Zelle member and their bank does not use Zelle, then they’ll need to download the Zelle app and register via it²

One thing to note is that if you want to either send or receive money with Zelle, you must have a bank account in the US.

This means that you can’t send money internationally using Zelle, as the recipient's bank account will be non-US.³

If you'd like to send money internationally, use Wise. You can send money online to more than 160 countries using the mid-market rate.*

Send money internationally with Wise

Send, Receive and Request money with Zelle

Whether you’re sending, receiving or requesting money with Zelle, the steps involved are similar.

Sending with Zelle: step by step

If you’re looking to send money with Zelle, all you need to do is:

1. Find out if your bank uses Zelle, with the help of their online tool

2. If they do, register for Zelle using your phone number and email address through your online banking app or website - if not, download the Zelle app and register via it

3. Enter the email address or phone number of the person you want to send money to

4. Enter the amount you want to send to them

Not so complicated, right?

Receiving with Zelle: step by step

If you want to receive money and are already signed up with Zelle, then any payments will go directly into your account.

If you’re not signed up, then follow these steps to access your payment:

1. You’ll receive a payment notification via email or text from Zelle - click the link provided

2. Select your bank

3. Follow the steps to sign up for Zelle - either through your mobile banking app if they support it, or by downloading the Zelle app

4. Receive your payment

And voila - that’s it!

Requesting money with Zelle: step by step

If you want to request money, the steps are almost exactly the same:

1. Enter the email address or mobile number of the person you’re requesting money from - or simply select them from your contact list if you’ve made previous transactions with them

2. Select to request money

3. Enter the amount you want to request

4. Confirm the request

If your bank doesn’t offer Zelle, then you’ll also have to enter your card details when registering.

On another note, It’s important to remember that Zelle should only be used with people you trust.

Is Zelle safe?

With such speed and ease, you may be wondering: is Zelle safe?

The general answer is that Zells is safe to use as long as you’re sure that you’re sending money to someone you trust.

Unlike other peer-to-peer transfer services, it is very hard to get your money back after making an unwanted payment with Zelle. This is because Zelle doesn’t offer safety features such as buyer protection. This means that if you don’t receive an item that you paid for, there’s no guarantee you’ll get your money back.⁴

Similarly, because Zelle transfers are completed in a matter of minutes, you often don’t have the chance to cancel a payment. Some sources have speculated that this makes it a preferred platform for scammers and fraudsters.⁵

To stay on the safe side, Zelle emphasizes that you shouldn’t send money to strangers or people you don’t trust. In fact, Zelle has a whole section on their website dedicated to warning users about fraud and scams.

All this being said, Zelle is still safe to use as long as you follow this advice. Moreover, one of the stand-out benefits of paying with Zelle is that your money is never held in a third-party location, meaning it is either in your bank or your recipient’s. This means that your money is always insured.

Is there a fee to use Zelle?

If you’re a prospective Zelle user, you may also be wondering: is Zelle free?

You’ll be happy to know that Zelle doesn’t charge any fees for receiving or sending money. You heard right - you won’t pay a dime in Zelle fees!

Similarly, Zelle is free to download and use. That being said, they do recommend that you check with your bank in case they charge additional fees.⁶

Wise

Wise is a money service business (MSB) that processes payments through its own network, meaning you pay locally, using local bank systems, like an ACH or wire, and the funds are then paid out locally in the recipient’s location too — which avoids those nasty international transfer fees.

To send money online with Wise, you will pay a small, flat fee and a percentage of the amount that’s converted.

All you’ll need is the local bank details of where you’re sending money to. Wise uses the mid-market exchange rate — the same one you see on Google — and simply charges a low, upfront fee*. No hidden charges. No unwelcome surprises.

If you regularly send money across borders, consider signing up for a Wise Account. You can store your money in dozens of different currencies and pay or get paid with local bank details in regions including the US, the UK, the EU, and Australia.

Get started with Wise

Did you know that Wise also offers a business account?

Some key features of Wise Business include:

Better visibility and organization of business finances. This is helpful for account reconciliations and audits. Major local account details for a simple one-off fee to receive international payments with ease No monthly account fees or minimum balance requirements Receive payments from e-commerce platforms (such as Amazon or via Stripe). Create invoices using the free Wise invoice generator or invoice templates. Accounting integrations, including a QuickBooks Bill Pay connection Batch payment options. Fast payment of up to 1,000 people.

Discover the difference betweenWise Business vs Personal

What banks use Zelle?

Given Zelle’s popularity, the next question is what banks use Zelle? Luckily, Zelle is supported by thousands of financial institutions, so it’s likely that your bank supports it too.

Here are just a few of the many banks which support Zelle:

• Bank of America®
• Wells Fargo Bank®
• Chase Bank®
• Citibank®
• TD Bank®
• PNC Bank®
• Fifth Third Bank®
• Capital One®
• Ally Bank®
• Citi®
• Fidelity Bank®
• Discover Bank®

Limit for Zelle transfers

If your bank doesn’t offer Zelle, then you’re limited to the Zelle weekly limit, which is $500 for sending, and $5,000 for receiving. If, on the other hand, your bank does offer Zelle, then you’ll be restricted by their limit.⁷

Limit for Zelle with banks

Depending on which bank you use, the daily and monthly transfer limits will vary.

Here are a few examples of banks and their Zelle transfer limits.

Bank	Daily Sending Limit (USD)	Monthly Sending Limit (USD)
Bank of America⁸	$3,500	$20,000
Wells Fargo Bank⁹	$3,500	$20,000
Chase Bank¹⁰	Daily limits from $500 to $10,000 depending on your account tier	Varies depending on your account tier
Citibank¹¹	$500 - new customer ≤ 30 days $2,500 - $5,000 existing customer 90 days, based on account type	$2,500 - new customer ≤ 30 days $15,000 - $20,000 existing customer 90 days, based on account type
Discover Bank¹²	$600	n/a
TD Bank¹³	$1,000 - transfer within minutes $2,500 - next day or scheduled transfer	$5,000 - transfer within minutes $10,000 - next day or scheduled transfer

Check out our full guide to Zelle limits for more

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If you want to send more than the Zelle transfer limit your bank offers, or are even looking to send money internationally, then enrolling with a cheap international transfer service - like Wise - might be a smart idea*.

Join Wise in minutes

With Wise, you can send up to $1 million in a single transaction. But remember to double check with your bank first, as if their sending limit is lower, then you’ll be capped at that level.

On top of this, you’ll get the mid-market exchange rate, with low, transparent fees, which could mean you save.

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Overall, if you’re looking to send money to a friend in a matter of minutes, without any additional fees, then Zelle is a good option.

Compared to other peer-to-peer transfer services, Zelle’s lack of fees is a real bonus. But, that being said, the speed and ease of the transaction comes at a different type of cost - namely, security.

If you’re going to send money with Zelle, then just make sure you know and trust who you’re sending to.

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Sources:

1. Zelle - Partners
2. Zelle - How it works
3. Zelle - Who can you send money to
4. Zelle - security
5. Experian - What you need to know about Zelle
6. Zelle - Fees
7. Zelle - Limits
8. Bank of America - Zelle limits
9. Wells Fargo - Zelle, Section 10.D
10. Chase - Zelle overview
11. Citibank - Zelle limits
12. Discover Bank - Zelle overview
13. TD Bank - Zelle limits

Sources checked on 04.12.2024