Zelle Vs Venmo: Which To Use And When

In this article, is our Zelle Vs Venmo comparison which will help you and your friends or family members decide which one works best for you.
Ketcha Brandon
Zelle Vs. Venmo

In this modern era, Cash apps let you move money about as fast as you can spend it. Zelle and Venmo are two of the most well known apps for money transfers online. However, while they are both members of the same family, they are more like cousins and twins.

Each app works differently and depending on what you want, one might work better for you than the other.

Splitting a bill with friends and family by sending them a mobile payment is a common act nowadays. and this is mostly done using Venmo and Zelle. Both apps are P2P apps that allows you to send money fast and for free. All you have to do is to get your friends email address or phone number, enter the amount and then tap send.

In the Zelle VS Venmo competition, there is no app that emerges as clear winner since the victor in this comparison will greatly depend on what you are looking for in a mobile payment app.

In this article, is our Zelle Vs Venmo comparison which will help you and your friends or family members decide which one works best for you.

Table of Contents

Zelle Vs Venmo

In the world of peer-to-peer payment platforms, Zelle and Venmo have become popular choices for convenient and fast money transfers. However, when it comes to safety and security, it's natural to wonder which platform offers better protection for your financial transactions. In this article, we'll explore the safety features and security aspects of both Zelle and Venmo, providing insights to help you make an informed decision.

Zelle and Venmo are available only in the United States, unlike competitor PayPal, which has users in more than 200 countries and supports 25 different currencies.

ALSO READ: What Prepaid Cards Work With Zelle?

What is Zelle?

According to Forbes Advisor, Zelle is a money transfer app that lets you send and receive money instantly between U.S bank accounts. There are two ways one can use zelle; Via participating banks and credit unions or through the Zelle mobile app.

Since the app was launched in the year 2017, close to 10,000 financial institutions have joined it network and 1.8 billion payments were sent via the platform in 2021.

How Does Zelle Work?

Zelle is a person-to-person app that lets you send money quickly from your bank account to any other person you choose to. Zelle capabilities are built into an app from a bank or credit union. You will find more than 1,700 banks and credit unions in the U.S offering Zelle within their apps.

In the year 2021, Zelle users sent $490 billion- which is almost half a trillion dollars in payments. Zelle technology comes from Early Warning Services LLC, owned by seven main U.S banks namely; Bank of America, BB&T, Capital One, JP Morgan Chase, U.S Bank, PNC Bank and Wells Fargo.

ALSO READ: What Banks Use Zelle? List of Local & Online Banks That Use Zelle

What is Venmo?

Venmo on the other hand is a social payment app which one can use to exchange funds with people and businesses. Unlike Zelle, Venmo acts as a digital wallet, allowing you to keep money in your Venmo account in order to pay for purchases. You are able to access your Venmo account by making use of the mobile app or Venmo's website.

How Does Venmo Work?

In order to send and receive money on the Venmo platform, you need to first of all sign up for a free Venmo account. When one Venmo user sends funds to you, the money will arrive in your account instantly. From here now, you can choose to keep the funds in your account or transfer the money to a linked bank account.

How Do You Use Zelle?

Several users access Zelle via their bank's website or mobile app. If your bank's app is not integrated with Zelle, you can simply download the Zelle app directly.

You have to download the app from App Store or Google Play depending on your device's system, and then you enter your mobile number and the number of either a Visa or Mastercard debit card.

As soon as you enroll with Zelle, all you need to transfer funds is your recipient's email address or phone number. If the recipient has already signed up with Zelle, the money will appear within minutes in their bank account.

In case you send money to someone who does not have a Zelle account, they will receive notification from Zelle. Zelle will lead them through the steps to create an account and receive the money.

The individual receiving funds must sign up for Zelle within 14 days. If not, the payment will expire, and the money will be returned to the sender.

With Zelle, you can also send receive money and also accept payments via the app. This can include money owed to you by government agencies, schools or companies.

ALSO READ: What Online Stores Accept Routing and Account Number

How Do You Use Venmo?

You are able to use Venmo to send or receive money from other Venmo users.

Once you have already setup a Venmo account, select the blue "Pay/Request" button and enter the name, username, email address or phone number of the person you had like to transact with. If the person is nearby, you can scan a QR code generated by their app so as to locate the account.

Advantages and Disadvantages of Zelle

Advantages of Zelle

With Zelle you can enjoy several advantages compared to Venmo:

  • No fees
  • Ability to earn interest on money held in checking or savings account tied to Zelle.
  • Available to customers of close to 10,000 banks and credit unions in the United States.
  • Fast transfers of money since money send via Zelle reflects in the recipient's account in a matter of minutes.

Disadvantages of Zelle

Similar to every other app, Zelle has its own disadvantages which are listed below:

  • No way to cancel a payment after it has been sent.
  • No way to maintain a Cash balance with Zelle.
  • No availability of a Zelle branded debit or credit card.
  • You cannot link your Zelle account to a credit card.

Advantages and Disadvantages of Venmo

Advantages of Venmo

  • No monthly or Annual fees.
  • App's social media-style feature may appeal to some users.
  • You can use Venmo for online or in-store purchases.
  • Availability of a Venmo branded debit and credit card.
  • You can maintain a cash balance in your Venmo account.

Disadvantages of Venmo

  • Fees are charged for some services.
  • You cannot earn interest on money deposited with Venmo.
  • Your privacy may be compromised unless you adjust privacy settings.
  • Money is unavailable instantly unless you pay a fee.
  • Transaction limits

ALSO READ: Can You Use Zelle With Any Bank? (Yes, Here's How)

Can Zelle Send Money to Venmo?

Transferring money from Zelle to Venmo is not possible directly since both services work in a completely different manner. Venmo funds are held as a Venmo balance in your account for you to spend or transfer, but Venmo is not considered a bank. While Zelle is a P2P app designed to transfer money between bank accounts.

While Zelle and Venmo operate independently, there are alternative ways to transfer money between the two platforms. One approach is withdrawing the money from Zelle to your linked bank account and then sending it from the bank account to your Venmo account. However, this involves additional steps and may incur some fees or delays associated with bank transfers.

It's important to note that interoperability or integration between Zelle and Venmo may change over time, so it's always advisable to check with the respective platforms or consult their official documentation for the most up-to-date information.

Is Zelle Faster Than Venmo?

It is of no doubt that both peer-to-peer apps are fast, but Zelle is the fastest among the two and it is also free. If you are a Zelle user, you surely know that Zelle transfers happen almost instantly. Venmo funds are made available to your account right way but transferring them to your bank account will take 1-3 business days.

However, if you are in need of your funds in the minutes that follow, then you can pay a 1.75% transaction fee for instant transfer.

Are Zelle and Venmo Safe to Use

From a general point of view, Zelle and Venmo are safe. Both incorporate security features into their apps, such as data encryption, purchase verification and fraud protection. Also to benefit from more safety, both Zelle and Venmo recommend that you send money only to trusted recipients and not strangers.

Though Zelle and Venmo are safe and secured, Users of both platforms are still susceptible to scams.

A report from Democratic U.S sen. Elizabeth Warren of Massachussetts said roughly 193,000 instances of fraud were reported by Zelle consumers in the year 2021 and the first half of 2022.

Zelle or Venmo?

With Zelle and Venmo, you can easily exchange funds with people and businesses you trust. One of the key differences is Zelle transfers are instant and free. With Venmo, receiving funds takes one or three business days, though it can be send instantly if you accept to pay a 1.75% instant transfer fee.

So it is actually fair to say that with Zelle you may be able to receive funds faster with fewer costs.

However, if you are one looking for a digital wallet that lets you accrue and hold funds, Venmo might be the better option for you since you cannot maintain a cash balance with Zelle.

More to that, payments send via Zelle cannot be canceled if the recipient is already enrolled with Zelle.

Final Thoughts: Zelle Vs Venmo

Both Zelle and Venmo offer safety features and security measures to protect user transactions. Zelle's direct integration with banks and adherence to ACH network standards enhance its security aspects. Venmo provides privacy controls and security notifications that allow users to manage their transaction visibility and monitor account activity. Regardless of the platform you choose, it's essential to practice good security habits, such as using strong passwords and being vigilant against potential scams or fraudulent activity.

Frequently Asked Questions

What happens if a Zelle transfer is not received?

If the recipient does not enroll in Zelle within 14 days of the payment being sent, the payment will expire and the funds will be returned to the sender’s account. Also, the sender can cancel a Zelle payment. If the payment is canceled, the funds will be returned to the sender’s account.

What happens if a Zelle transfer is not received?

the payment expires and the funds are automatically returned back to your account. Ensure your recipient is registered with Zelle.

How much money can you send on Venmo?

Unverified Venmo users can send $299 weekly, including payments to friends, family, and authorized merchants. Once you verify your Venmo account, you can send up to $60,000 weekly.

How much does Zelle charge?

Zelle charges no fees to send or receive money, but your bank may charge a fee. Contact your bank or credit union to confirm there is no fee for Zelle transfers.

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About the Author

Ketcha Brandon
I am Ketcha Brandon, An article writer, content creator, Video producer, Financial Consultant and a certified Google Publisher. I write content for Cashytransfer.com. Our website provide information on topics such as bank accounts, Money transfers,…

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