It is correct if you say “Zelle revolutionizes how we complete payments online”. Besides, this app brings you a secure and faster method of sending or receiving money between bank accounts. But a common question is – What banks use Zelle for free? Just before I get into the list of banks, Zelle currently networks with more than 1,800 banks. That’s a lot for a mobile payment app that instantly sends/receives money. Moreover, your banking options are not limited, such that your bank does not specifically need to partner with Zelle for you to experience Zelle’s services.
Is Zelle Free for All Banks?
What Banks Use Zelle for Free?
In this section, I have listed the partnering banks that use Zelle for free. The list is alphabetically arranged for your convenience. So, all you have to do is click the alphabet that is relevant to your bank and you will see a drop-down list of banks listed – then see if yours is listed.
Online Banks that Use Zelle
So, I listed the banks that use Zelle for free. Now, how about online payment apps that Zelle won’t charge you to use?
- Varo is one of the online banks that support Zelle.
- Users can sign up for Zelle directly from the Varo app.
- Although Chime is a neobank and not a traditional online bank, it does support Zelle.
- An innovative online bank that offers various features.
- Includes support for Zelle.
- Axos Bank
- Doesn’t support Zelle directly.
- Users can link their Axos debit card to the Zelle app and use it.
- Discover Bank
- Allows you to send money with Zelle directly from your banking app.
- Ally Bank
- You can use Zelle to send money from your checking, savings, or money market accounts.
- Capital One
- Supports Zelle directly from their app.
- Allows you to send up to $2,500 per day.
- iGO Banking
- Supports Zelle.
- Allows you to make transactions up to $1,500 per calendar day.
- First Internet Bank
- Offers Zelle as a payment option in their banking app.
- CIT Bank
- Allows you to send up to $600 daily using Zelle
What Bank is Associated with Zelle?
Zelle is a digital payments network based in the United States. It’s operated by a private financial services company. The ownership of this company is shared by several major banks in the U.S. These banks include Bank of America, Truist, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank, and Wells Fargo.
These institutions have come together to provide a platform that allows individuals to transfer money electronically from their bank account to another registered user’s bank account within the U.S. This can be done using a mobile device or through the website of a bank that participates in the Zelle network.
The service was introduced to the public in June 2017. Before Zelle, there was a service called clearXchange, which was the predecessor to Zelle. Over the years, Zelle has seen significant growth. By 2022, 80% of the U.S. population could access Zelle via their banking apps, and the service was supported by over 1600 financial institutions.
Does Zelle Work for All Bank Accounts?
Zelle can be used to transfer money between people at different banks. However, at least one person in the transaction must have an account with a bank that is part of the Zelle Network. This ensures that the transaction can be processed within the Zelle system.
Also, you can only connect one bank account to their Zelle profile at any given time. If a user wishes to change the bank account they use with Zelle, you would need to update their profile settings. Note that a U.S. checking or savings account is required to use Zelle. Transactions between enrolled consumers typically occur in minutes, and in most cases, there are no transaction fees.
Can I Use Zelle if My Bank Doesn’t?
If the recipient’s bank doesn’t offer Zelle, it’s still possible for them to use the service. Follow these simple steps:
- Download the Zelle app. The recipient can simply download the Zelle® app from their mobile device’s app store.
- Enroll with basic information. Once the app is downloaded, the recipient will need to enroll by providing some basic contact details. This includes an email address and a U.S. mobile number.
- Link a debit card. The recipient must have a Visa® or Mastercard® debit card linked to a U.S.-based account. Unfortunately, debit cards from U.S. territories are not eligible.
Meanwhile, I made a fix guide to help anyone whose Zelle payment is pending.
How Do I Know if My Bank Has Zelle?
You can check if your bank has Zelle. Just visit the Zelle website and search for your bank or credit union in the provided list.
If you find your bank or credit union on the list, it means they offer Zelle. You also need to enroll through your bank’s online or mobile banking platform. If you are unsure about the enrollment process or face any issues, reach out to your bank’s support team – they will guide you through it.
Also, even if your bank isn’t listed, you can still use Zelle by downloading the Zelle app for Android or iOS.
How Many Banks Are Connected to Zelle?
Currently, More than 1,800 banks are live on the Zelle Network. In 2022 alone, there was a 40% increase in the number of financial institutions joining the network. A significant detail to note is that 97% of the financial institutions that joined the Zelle Network in the past year have assets under $10 billion.
This indicates that not just the major banks, but also smaller financial institutions are recognizing the value of being part of the Zelle Network. The Zelle Network has seen substantial growth in transactions as well.
Consumers and businesses made 2.3 billion payments through Zelle in 2022, amounting to a total value of $629 billion. Furthermore, the safety of the network is commendable. Over 99.9% of payments on the Zelle Network were conducted without any reports of fraud or scams, so Zelle is secure.
Do Both Banks Have to Have Zelle to Receive Money?
The key requirement to use Zelle is that at least one party, either the sender or the receiver, must have access to Zelle through their bank or credit union. This means that even if your bank does not offer Zelle, you can still receive money from someone whose bank does.
If your bank or credit union does not support Zelle directly, there is no need to worry. You can simply download and use the Zelle app to facilitate the transaction.
The funds will typically be transferred to your bank account in minutes. If the recipient is not enrolled, they will receive a notification guiding them on how to receive the funds. Meanwhile, you might be able to receive money from Zelle without bank account.
What is Downside of Using Zelle?
Zelle, while convenient, comes with its own set of drawbacks. One major disadvantage is the inability to cancel a payment once it’s been sent if the recipient is already enrolled in Zelle. This means that if you mistakenly send money to the wrong person or change your mind about a transaction, there’s no way to reverse it if the other party has Zelle.
Also, Zelle does not offer a branded debit or credit card, limiting its versatility compared to other payment platforms.
Another significant concern is the risk of fraud. Zelle transactions are typically instant, which is often seen as a benefit but has unfortunately made it a prime target for fraudsters. Unlike other bank transfers or payment card transactions that might take a day or more to process, Zelle transfers are almost instantaneous. This speed can be exploited by criminals who deceive or intimidate individuals into sending money. Once the money is transferred via Zelle, these fraudsters can quickly drain thousands of dollars in mere seconds. This rapidity, combined with the inability to cancel transactions, makes it crucial for users to be extra cautious when using Zelle.
- Are there any fees to send money using Zelle®? Zelle Pay
- Financial Institutions Joining the Zelle Network® Increased by 40% in 2022. Zelle Pay
- Find Your Bank. Zelle Pay Enroll
Read also: Does Zelle Work with GO2bank?
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