What is Zelle, which banks use it and how to transfer money

11/24/2022

In the United States and other countries that develop apps, there are more and more options for processing payments almost immediately. Among them, Zelle has become increasingly popular as a service that allows users to make money transfers from the convenience of their devices.

What is Zelle

Simply put, Zelle comes to be a P2P platform that facilitates the exchange of money between people who have a bank account in the United States. There are many banks that are affiliated with this network for their customers to use this service.

When you sign up through the app, you only need a cell phone number or email to send/receive money. In addition, it is not necessary that both sender and receiver use Zelle, as only one of them has it, it is possible to make the transfer.

Origin of Zelle

Launched in 2017, Zelle is a platform for processing money transfers created by the company Early Warning Services (EWS). Focused on private financial services, it is owned by major US banks such as JPMorgan Chase, Wells Fargo, Capital One, Bank of America, Citibank, Truist Bank, PNC Bank and US Bank.

In a way, this service and its app came to replace a similar initiative that was released in 2011, which was called clear Xchange. This version was sold to EWS in 2016 and this company discontinued it for personal payments in 2017 in favor of its new product, the Zelle system.

How to sign up for Zelle

To use Zelle on a regular basis, you must sign up for the service through online banking, your bank's app or the Zelle app. It is a very simple process that is done through a form that you must complete with your personal information.

When using Zelle's own app (for Android and Apple), you must include your debit card, which must be linked to a U.S. bank account. Accounts from other countries cannot be used.

How Zelle works

Like other digital wallets and payment processors, Zelle allows you to make P2P wire transfers. To do so, they need to be registered in the network formed by the affiliated banks. This option may be included in the mobile applications sponsored by the respective entity.

What characterizes Zelle is that you can send money in a few minutes to the people you have in your contact list. You can also try to send money to non-registered users, but they will have to join the service (it takes 1 to 3 days). You only need to have a US email or cell phone number to make the transaction you need.

If you want to use the Zelle app, you must register a Visa or MasterCard debit card that is associated with a US entity. Since the system connects to existing bank accounts, you do not need to open another one to send or receive money.

It is important to note that the cell phone number or email address you enter only serves to activate the account of a single institution. In case you need to add several accounts from different banks, you will have to provide different numbers or emails for this purpose.

On the other hand, you can use this application on your smartphone or through the website of the bank you have enrolled. In addition to transferring money to those who are enrolled in the platform, you can request that others send it to you or ask them to split the cost of an account with you.

How to transfer money with Zelle?

With Zelle you can send money directly to another person, through your bank account or debit card. Even if your bank or credit union does not offer this platform, you can still download the app to use it. Best of all, these transactions are immediate and free of charge.

Now, the process to use this payment method can be summarized in the following steps:

First, check if your bank offers Zelle. If so, you can download the application or use your bank's website to join. Generally, you will find this option in the transfer category on the website and in the app.
Get the recipient's email or cell phone number. Zelle is a service that works within the U.S. banking system. You only need to know the email or cell phone of the person/company in question to send the money. To avoid an erroneous transfer, you should make sure you have the exact information.
Select the amount. The amount you can send will vary depending on the financial institution you use (from $2,000 to $3,500 per day). When the credit union or bank does not offer you the possibility to use Zelle, the application has a weekly limit of $500. Considering this, we recommend that you use the platform for small payments/transfers.
Send the money. Once you have verified the recipient's data, you can proceed to send the funds, which will reach your bank account in a few minutes. In case the person is not subscribed to the service, he/she will receive an email or sms with instructions on how to get the money.

Benefits of using Zelle

Although you should already have an idea of the advantages of Zelle, we remind you of them:

Fast	Unlike other banking operations, funds sent by Zelle are reflected in 5 minutes or less.
Free	Although the platform does not charge for sending money, you should check if your bank charges a fee for this service, but usually not.
Compatibility	Within this platform there is an extensive list of banks and credit unions that are part of the system. In any case, you can always use the app in combination with your debit card to send or pay.
Convenience	Similar to a debit card, you don't have to go to the ATM to withdraw money to pay for products or services. With a simple digital transaction, you just swipe the money and you're done.

Zelle's daily and monthly limits

As a precautionary measure, the institutions that sponsor this transfer network have spending limits for those who use the service. Examples:

Daily transactions with Bank of America account is a maximum of $2,500 USD and up to $20,000 USD per month and you can do them through their mobile app.
Transfers with PNC Bank and Citizen's Bank are identical: $1,000 USD daily and up to $5,000 USD monthly.
Transfers from a Wells Fargo Bank savings or checking account are limited to $2,500 USD per day and $4,000 USD within 30 days. If you use the app instead of the Wells Fargo system, the restrictions are greater.
Transfers through the JPMorgan Chase bank personal checking account or Liquid cards have a daily limit of $2,000 USD or $5,000 USD if you are a private client or use the Business account. For the first option, the monthly maximum is $16,000 USD, and for the second, $40,000 USD.
If you have been a Citibank client for less than 90 days, you can only transfer $1,000 USD with the Basic, Access, Citi Priority, Citigold and Citi Private Bank accounts. If you have been a client for more than 90 days, the limits range from $2,000 (Basic and Access) to $5,000 USD (Citi Priority, Citigold and Citi Private Bank). With less than 90 days, the monthly maximum is $5,000 USD for all accounts. Over 90 days, you can go from $10,000 USD (Basic and Access) to $15,000 USD (Citi Priority, Citigold and Citi Private Bank).

Warnings about using Zelle

We remind you that Zelle transfers to your contacts cannot be cancelled once they are processed by the system. Unless you send money to someone who is not enrolled in the service, you can't reverse the transaction.

The use of this system is designed for you to send and receive money from those close to you with whom you need to share these transactions. The company behind this network advises against using it to sell or pay for goods.

Which banks use Zelle in the United States

The vast majority of financial institutions operating in the USA allow you to use Zelle to make immediate payments between individuals. Below is a list of the most important ones, but you can consult the complete list by clicking here .