How To Use Zelle: A Beginner’s Guide To Digital Payments

Images by Getty Images; Illustration by Issiah Davis/Bankrate

Zelle is a popular peer-to-peer (P2P) payment service with payments appearing in a recipient’s bank account almost instantly with no extra fees. 

With over 2,200 participating financial institutions, Zelle makes it easy to transfer funds to friends, family and other trusted contacts through your bank or credit union’s mobile app or online platform, without the need for cash or checks.

Here’s what you should know about Zelle and how to use it to send payments.

What is Zelle?

Zelle is a digital payment network owned by Early Warning Services, LLC, which is co-owned by Bank of America, Truist, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank and Wells Fargo.

The service allows you to send and receive money directly from many U.S. bank accounts within minutes, as long as both the sender and the recipient are enrolled in Zelle through a participating financial institution.

You can send money in a matter of minutes with your recipient’s phone number or e-mail address. There are typically no fees to use Zelle. 

How to use Zelle

Using Zelle is pretty simple, especially since many banks and credit unions offer the service within their mobile apps or online portals. Follow these steps to get started:
 

1. Confirm whether your bank offers Zelle. If it does, you’ll find Zelle on your bank’s mobile app or website.
2. Register for Zelle by signing up with your mobile number or email through your bank’s app. You may need to accept the terms.
3. If you want to send money, open your banking app and select Zelle. Add your recipient by using their email address or U.S. mobile number.
4. Enter the amount you want to send and review the information. Confirm that everything is correct and then send the money. The recipient will receive the funds right away if they’re also registered with Zelle. Note: If the recipient is not enrolled in Zelle, they will receive an email explaining how they can receive the money.

Recent Zelle updates

Zelle now requires all new users to enroll through a participating financial institution to use Zelle. New users can no longer enroll directly through the Zelle app.

In a press release, Zelle stated that less than 2 percent of transactions were being conducted in the app. “As a result of our growth, and because most people are now using Zelle in their financial institution’s mobile app or website, we are making a change to the Zelle standalone app,” Zelle said in a press release.

Is Zelle safe to use?

Zelle is considered a safe option for sending and receiving money, as it uses authentication and monitoring features to protect your transactions. 

You also won’t have to worry about money getting lost or stolen in the mail, bypassing the risk that comes with sending cash or checks.

However, as with any financial service, there are some risks to be aware of:

• No cancelation or purchase protection: Once you send a payment through Zelle, it typically cannot be canceled or reversed, as the funds are transferred directly into the recipient’s bank account. Unlike some credit card transactions, Zelle does not offer purchase protection for goods or services.
• Potential for fraud and scams: Scammers may try to trick you into sending money via Zelle for fraudulent purchases, by impersonating your bank or a government agency and more. Always verify the legitimacy of any payment request and only send money to people you know and trust.
• Sharing personal information: When you enroll in Zelle, you provide personal information like your email address and mobile phone number. While Zelle uses encryption and other security measures to protect your data, there’s always a small risk of your information being compromised.

To minimize these risks and use Zelle safely, follow these tips:

• Only send money to people you know and trust, such as friends and family members.
• Double-check the recipient’s email address or mobile phone number before confirming a payment.
• Be wary of unsolicited requests for money.
• Never share sensitive information, such as your bank login credentials, Social Security number or debit card number, with anyone claiming to be from Zelle or your bank.
• Enable notifications from your bank and Zelle to stay aware of any suspicious activity.

Zelle transfers can’t be canceled once sent, so it’s important to check and make sure you’re not sending money to the wrong person. If you’re not careful, it’s easy to make an error, especially if the names are similar. And never share your bank account password with anyone.”

— Sheiresa McRae Ngo
Bankrate writer and certified educator in personal finance

If you suspect fraudulent activity or believe you’ve been a victim of a Zelle scam, contact your bank or credit union’s customer support immediately. You can also report the scam to the Federal Trade Commission and the Consumer Financial Protection Bureau.

Pros and cons of Zelle

Bottom line

Zelle can be a great option for sending money to another person’s bank account, even if they have an account with a different financial institution.

When using Zelle, always make sure you know who you’re sending money to by checking the recipient’s contact information and monitoring your account activity for any unauthorized payments.