Believe it or not, mobile payment apps began in 1997 with a Coca-Cola vending machine. Customers would text the machine, pay on their phone, and receive a product. Luckily, peer-to-peer and mobile payment apps have become much more advanced than a text to a vending machine.
Zelle banks are one of the latest advancements in mobile payment apps. Before you start using it, you should know how Zelle banks work. Keep reading, and by the end of this article, it’ll be easy to jump into this new mobile payment platform.
What is Zelle?
Zelle is a transfer service that can send and receive money. They launched in 2017 and have become one of the most popular money transfer sources available. The company had over $307 billion transferred using its services in 2020.
More financial networks are also adding Zelle onto their bank accounts to make sending and receiving money easier for consumers. You can use the Zelle banks app to send money to people. But, you can even use it directly in your banking app.
How Zelle Banks Works
Zelle takes money directly from one checking account and puts it in another. This eliminates the need to input card information into apps. It also makes transfers instantaneous, rather than taking a few days or an extra fee.
Sending
All you need to do to send money with Zelle banks is enter the email and phone number of the recipient. After confirming the transfer, the person getting the money will get a notification.
If they already have a Zelle account, the money will go directly into their bank account. When they don’t have an account, they just need to quickly set one up to accept the funds.
Receiving
After giving the person sending you money your email and phone number, you can receive money. When you already have Zelle, the payment transfer instantly.
If you don’t have Zelle banks, they will ask you to sign up for an account if your bank offers Zelle. But, if your bank doesn’t offer Zelle, don’t worry! You can just download the app and connect it to a Visa or MasterCard.
The difference between the app and a bank connection is the app will take up to three days to transfer into your account.
Canceling
We’ve all accidentally sent money to someone we don’t want to. When you need to cancel a Zelle payment, you should be aware that it’s a complicated process.
You can instantly cancel anything if the recipient does not have a Zelle account. But, if they do have an account, you can’t cancel the payment because of the instant transfer process.
Limits, Fees, and Saftey
If your bank does not offer Zelle, your sending limit is $500 a week. Banks that do offer Zelle can set their limitations. Contacting your bank will make you aware of any sending limits.
Zelle does not have any extra fees to use their platform. But, your bank can charge an extra fee to add Zelle to your account.
Zelle banks use many authentication methods and monitors transactions to ensure safety. When going through a bank, your bank adds an extra layer of protection.
But, because money moves so quickly, you need to make sure you’re sending the money to the person you want to. You should verify recipient phone numbers and emails. Only send money to people you trust.
What Banks Use Zelle?
Hundreds of banks use Zelle. You can find your bank on the list, or even contact your bank or credit union to find out.
The most common banks with Zelle are Bank of America, Chase, and Wells Fargo.
Start Using Zelle Banks Today!
Zelle banks are one of the quickest ways to send and receive money. It’s compatible with most banks. And, since it’s going through your bank, you have an extra level of security and protection.
Are you looking for more financial advice? Check out the rest of our blog!