Why Zelle may be your best option for sending money

That said, not all payment apps are created equal. Because of this, thousands of credit unions and banks have chosen Zelle^® as their trusted payments partner.  

Zelle is available through more than 10,000 U.S. financial institutions, including CAFCU. That puts it on a par with Venmo, Cash App, and PayPal as one of the most ubiquitous payment apps available. In other words, it’s everywhere and can be used by almost anyone to make quick payments between trusted sources. 

Here’s why Zelle is the app of choice for most financial institutions – and how you can reap the benefits of this easy way to pay people you know. 

Payments are instant when sending to other registered Zelle users. Because Zelle works through your credit union or bank account, the money you send and receive can be transferred quickly in most cases, usually in a matter of seconds or minutes at most. This means it is truly one of the fastest ways to send money outside of wire transfers. 

Transactions are free. When you set up Zelle with your credit union or bank account, you can send money directly to and from other registered Zelle users without paying any fees. Though the other major payment apps allow users to send money for free with a linked bank account, they can charge anywhere from 0.5% to 1.75% for instant transfers as well as charging fees for sending money with a credit card and when making withdrawals from an ATM. Zelle, on the other hand, doesn’t charge fees to send or receive money. 

Money you receive goes straight into your federally-insured account: While other payment apps hold your money in their (often) uninsured accounts, Zelle instantly transfers money from one bank or credit union account to another. This is important because, according to the Consumer Financial Protection Bureau (CFPB), billions of consumer dollars may be at risk when stored on popular peer-to-peer payment apps. So if you let your money sit in an uninsured app and it gets hacked, you could lose your money. On the flip side, when you keep money received via Zelle in a bank or credit union checking or savings account, it is typically insured up to $250,000 by either NCUA (credit unions) and the FDIC (banks). If you do use an uninsured payment app, make sure you transfer any payments you receive to a federally insured account early and often. 

Zelle is safe when you use it right. Zelle® offers a great way to send money quickly and securely to people you know. Unfortunately, scammers love to work whatever angles they can with popular technologies, and Zelle is a common target. With Zelle, you can’t cancel a payment once it’s been sent if the person you are paying is enrolled in Zelle. That’s why it is critical that you know who you are paying and question anyone you don’t know who asks you to pay them via Zelle, as there are many criminals who attempt to dupe victims by posing as credible payees (see our Fraud Awareness page in the resources section below for examples of common imposter scams to watch out for). Remember: Only Zelle money to people you know and trust.   

There’s no faster way to send money in small amounts to friends than Zelle. Of course, you’ll still need to use a wire transfer here or there if you are wiring money for a mortgage down payment or another significant transaction. But for those day-to-day payments of people you know, Zelle is the way to go. 

Most people can access Zelle directly through their credit union or bank. CAFCU members, for example, can simply log in to Online Account Access from a desktop computer or the CAFCU app.  

Then: 

Have questions about how to improve your financial health? CAFCU can help! Whether you are a member or not, you can schedule a free financial coaching session with one of our certified financial wellness representatives.