Zelle Review 2024: Pros, Cons, and More | The Motley Fool (2024)

Zelle is a free payments app that is easy to use and transfers money fast. This mobile peer-to-peer payment app lets you send money directly from one savings or checking account to another. It's a good way to send money to someone you already know.

How does Zelle work?

Once you have an account, it is simple and free to move money between other Zelle users. All you need is a person's phone number or email address -- you don't need to know their bank account details.

• Start by choosing whether you want to send or receive money, or split a bill.
• Enter the mobile number, or email address of the other person. You can choose any of your cellphone contacts directly from the app.
• Set the amount and the bank account you want to use.
• Confirm the transaction.
• If you're sending money, Zelle will send a text message or email to let the recipient know there's a payment waiting.

If you don't have an account, it is super easy to get started:

• Look to see if your bank or credit union offers Zelle -- many of them do. If so, you'll be able to access the service through your mobile banking app or online banking.
• If your bank does not work with Zelle, download the app from the App Store or Google Play. You'll then need to enter your personal and bank information. At least one person (sender or receiver) must have access to Zelle through their credit union or bank.

No fees

Zelle is free to download and use. Unlike some other payments apps, Zelle won't charge you to send or receive money. That said, it's always a good idea to check with your bank to ensure it doesn't charge any money transfer service fees.

It's secure

Zelle sells itself as a secure money transfer app because it doesn't store your personal information. Your details stay secure with your bank and are never visible to Zelle.

However, the downside to instant money transfers is that you may not be able to cancel transactions once they are made. That's why you need to know and trust the person you're sending money to.

Money transfers are fast

This payment option is a great way to send money quickly. In most cases, those who are enrolled with Zelle can receive a money transfer within minutes. According to The Ascent research, speed is one of the most important features Americans want from digital payment app.

Integrated with banking apps

This mobile payment app was created by some of the big banks. As a result, Zelle is already built into many banking apps, including Bank of America, Chase, and Wells Fargo. Its website lists 2,100-plus banking partners.

It says 150 million people can access Zelle through their banks, so you may not even need to download it separately. Plus, unlike other banking apps, there's no middleman. The money will go straight to the recipient's savings or checking account.

No recipient banking info is needed

You don't need to have the recipient's banking details on hand to send money. All you need to know is their phone number or email address. Zelle will text or email the recipient and handle the rest. That makes it even easier to handle your personal finance and money transfer needs.

You can send money, request money, or split purchases

Zelle lets you send money, request money, or split purchases with other Zelle users. To split the cost of something, enter the total amount and choose who to split the expense with. Zelle will do the math for you.

There's no fraud protection

One of the biggest concerns about Zelle is its lack of fraud protection. Unlike PayPal, which will reimburse you if a product doesn't arrive or isn't as promised, Zelle does not protect buyers and sellers.

Be aware of potential Zelle scams, as they do exist. Zelle recommends you only use its service to send money to people you know and trust. Don't use Zelle to send money to strangers.

You can't transfer funds from a credit card

Zelle only supports bank transfers. If you usually use your credit card to send money to family and friends, this isn't the right payments app for you.

If you do use credit card transfers with other payments apps, be aware that you often have to pay. Plus, credit card issuers typically mark these kinds of transactions as cash advances, which are very expensive.

Only supports U.S.-based bank accounts

Zelle does not work for international transactions as it only supports U.S.-based banks and credit unions. Other apps, like PayPal and Xoom, also work well for international payments.

You may not be able to cancel a payment

Once you've made a transfer, the only way you can cancel a Zelle payment is if the recipient has not yet enrolled. If you transfer money to someone who already has a Zelle account, there is no way to cancel it.

There are payment limits

Zelle limits the amount of money you can send. Each bank can set its own limits, so you'll want to check with your bank. If you're using the Zelle app to send money, the weekly sending limit is $500, and the weekly receiving limit is $5,000.

The Zelle app scores highly for both iOS and Android, with users praising the ease of use and speed of transfer. However, some users complained of technical glitches and sign-in issues. The company does not fare well on Trustpilot and BBB where users have had problems with customer service and blocked transactions.

• iOS app rating: 4.8/5 stars
• Android app rating: 4.0/5 stars

Zelle is intuitive and easy to use, particularly if your bank partners with the payment app. As long as you and the person you are paying (or being paid by) have Zelle accounts, you can send or receive money in minutes. It really is as simple as choosing who you want to pay and by how much.

Zelle app home screen. Image source: Zelle, captured by author.

Zelle search for your bank screen. Image source: Zelle, captured by author.

Zelle "You've got Zelle already in your banking app" screen. Image source: Zelle, captured by author.

In terms of safety, the biggest risk with Zelle is fraud. Zelle says it has authentication and monitoring features to ensure your payments are secure. Importantly, you will never share your account details when you make a transaction -- only your email or mobile number.

Only use Zelle to pay people you know and trust.

• Don't send money to people you don't know through Zelle. If, say, an online seller says they only accept Zelle payments, do not follow through with the purchase.
• Double-check the phone number or email address of the person you're sending money to. If you get the contact details wrong when you send money, you may not get it back.
• Consider using your credit card to buy things from people you don't know. This will almost certainly give you more protection.

• You want a quick money transfer service that will not charge any fees.
• You only want to send money to people you know and trust.
• It integrates with your existing bank account.