Zelle

[E350]

A Zelle transfer goes directly from my bank account through the Zelle transfer system of the National Banking Association directly into your bank account.

No fees are charged for the transfer.

Why? Zelle is what the National Banking Association uses to transfer funds.
Because banks transfer funds constantly, banks set up Zelle.
Because banks have already set up Zelle, they don’t have to charge you to use it.
It is just a back end function of the banking business which banks are recently letting you have access to.

Contrast PayPal. PayPal is not a member of the National Banking Association.
So, PayPal had to set up and maintain an entire funds transfer infrastructure.
That costs money to maintain.
So PayPal charges fees for you and me to use it.

We are already paying our banks fees, so why pay PayPal more fees to do something our banks will let us do for free?

How does it work? If I want to transfer funds to you, I will Zelle on my home banking account it to your email address.
You will get a notification from Zelle to your email address saying you have money coming, so follow the instructions in the email to link it to your bank account.
Then Zelle will put the money in your bank account.

There is no buyer protection with Zelle that I am aware of.

There is no buyer protection with PayPal "Friends and Family" or "Trusted Recipient" that I am aware of.

I believe that there is buyer protection with PayPal when you pay the PayPal fees for a payment to a business or other commercial transaction. If so, you would want to use PayPal for an unknown, un-trusted seller instead of Zelle.

 

[KMN]

Paying Paypal a 3% fee for purchase protection may just be worth it. It can screw the seller though if the buyer is trustworthy as well.

"Friends and Family" doesn't offer any protection, but doesn't cost anything and is easy like Zelle. Zelle has pretty low transfer limits. Limits below:

Bank	Daily Limit	Monthly Limit
Ally Bank	$5,000	$10,000
Bank of America	$2,500	$20,000
Chase Personal Checking	$2,000	$16,000
Chase Business Checking or Chase Private Client	$5,000	$40,000
Citibank Account, Basic Account and Access Account	$2,000	$10,000
Citibank Citi Priority, Citigold and Citi Private Bank	$5,000	$15,000
Citizens Bank	$1,000	$5,000
PNC Bank	$1,000	$5,000
U.S. Bank	$2,500	$10,000
USAA	$1,000	$10,000
Wells Fargo	$2,500	$20,000

 

[OCD Solutions]

Good info.
Too bad it has such a low Daily Limit though.

 

[bored&stroked]

Ill be damed if I ever give some random app access to my bank accounts. Freaking kids.

 

[DAG]

Ill be damed if I ever give some random app access to my bank accounts. Freaking kids.

ok boomer

 

[Big Kahuna]

Paying Paypal a 3% fee for purchase protection may just be worth it. It can screw the seller though if the buyer is trustworthy as well.

"Friends and Family" doesn't offer any protection, but doesn't cost anything and is easy like Zelle. Zelle has pretty low transfer limits. Limits below:

Bank	Daily Limit	Monthly Limit
Ally Bank	$5,000	$10,000
Bank of America	$2,500	$20,000
Chase Personal Checking	$2,000	$16,000
Chase Business Checking or Chase Private Client	$5,000	$40,000
Citibank Account, Basic Account and Access Account	$2,000	$10,000
Citibank Citi Priority, Citigold and Citi Private Bank	$5,000	$15,000
Citizens Bank	$1,000	$5,000
PNC Bank	$1,000	$5,000
U.S. Bank	$2,500	$10,000
USAA	$1,000	$10,000
Wells Fargo	$2,500	$20,000

Sending Friends & Family does not cost them, but can cost you depending on where the funds are coming from. If PP Balance no fee. From your bank no fee. Credit Card there will be a fee. (For the sender)