Zelle is a peer-to-peer service that allows instant money transfers between connected U.S. banks. You only need the recipient’s phone number or email address to send money.
Here’s a brief guide on making Zelle payments, its benefits, and factors to consider before sending money:
Benefits of Sending Money Through Zelle
There are numerous benefits of sending money through Zelle, such as:
Instant Transfer
When sending money through Zelle, it is natural to ask, how long does Zelle take? The good news is that Zelle ensures fund transfers almost instantly. Unlike traditional payment transfer methods that may take hours or even days to process your request, Zelle only takes minutes.
Greater Convenience
Zelle is highly beneficial for day-to-day transactions. Whether you need to pay for your Uber Eats or split the grocery bill with your roommate, use Zelle for maximum convenience. No need to run to ATMs for cash withdrawals: make all the payments with just one tap.
Free of Cost
One of the biggest advantages of Zelle is that it doesn’t charge any fees to send or receive money. In some cases, your bank or credit union might charge a fee to support Zelle payments. Check your bank’s policies to avoid any sudden charges.
High Compatibility
Zelle is available in over 2,200 baking apps in the United States. Check Zelle’s official website to find out if your bank or credit union is compatible. If not, you can simply download the Zelle app on Android or iOS and connect a debit card. High compatibility makes Zelle a popular option among online banking users.
Things to Consider Before Sending Money Through Zelle
Before sending money through Zelle, there are some factors you should consider to prevent delays and money loss:
Transfer Cancelation
Since Zelle transfers funds directly into the recipient’s account, the method of cancellation isn’t straightforward. Payments can only be canceled if the recipient has not enrolled in Zelle yet. If that is the case, you can log into your bank or Zelle app and stop the outgoing transfer.
Compatibility with International Accounts
To use Zelle, both the sender and recipient need to have U.S.-based bank accounts. Zelle doesn’t support international transfers. Consider using alternative ways, such as direct bank transfer or money transfers, to send money abroad.
Purchase Insurance
Unlike credit or debit card payments, Zelle doesn’t offer purchase insurance. Therefore, only use Zelle for purchasing items from businesses you know or trust.
Security Practices
The instant and irreversible nature of Zelle payments can make it prone to security threats. Scammers can send payment requests to unsuspecting users and trick them into sending money. In most cases, Zelle won’t reimburse your payment.
Therefore, it is important to take robust security measures. Never share your Social Security number or bank account login information with someone claiming to be from Zelle or your bank. Always use Zelle to send money to friends, family, or trusted businesses. Moreover, double-check payment requests and the recipient information.