Venmo Vs Zelle: What’s the Difference and Which Is Better?
Venmo Vs Zelle If you’re putting money in the bank, you won’t be a stranger to the function of an ATM or your local post office. Nevertheless, some people are still put off by the idea of anything being put into an automatic teller machine. Take-out cash or paying bills both count as essential banking services.
One method that you might not have heard much about is called peer-to-peer payment apps. These cutting-edge digital tools let you send and receive donations from any smartphone using just a name. Communicating with one another can even be anonymous with this service.
These two payment service providers have both been established for quite some time now and have always prioritized the customer experience in everything they do. If you live in the US and need to send or receive money fast these are good, safe options for making it happen. Both payment service providers only allow transactions within the States, so if an international remittance is required you’ll need to look at a different service provider.
Venmo is available as a free app that can be downloaded from the Apple store or play store. To join Venmo, you must make sure that your bank has no fees related to Venmo withdrawals or send payments. If your bank does, you should contact (Venmo Vs Zelle) them immediately so they can remove the charges before using their services with Venmo. Venmo has multiple transaction options available and you can transfer funds, purchase meals, rent cars, and book vacations.
How Zelle and Venmo Compare
Zelle and Venmo are both payment services that allow you to send and receive cash from people with relative ease via a smartphone app. However, it’s important to understand how these two apps work differently.
What Is Zelle?
Sending money on the go is easier than it ever was! With Zelle, you can transfer funds between bank accounts in minutes for free. The speed and ease with which you can send your money actually beats most cash transactions. When the recipients of your Zelle payments deposit or withdraw the funds to or from their own bank accounts, it doesn’t take longer than a few days for the transactions to complete. Wondering what banks are supported by Zelle? That would be most banks to be honest!
What Are the Pros of Zelle?
Zelle offers several advantages compared with Venmo. Among them are:
- No fees
- Availability through more than 1,000 banks and credit unions in the U.S.
- Quick transfers of money; typically, money sent through Zelle is available to the recipient in a matter of minutes
- Ability to earn interest on money held in checking or savings accounts tied to Zelle
What Are the Cons of Zelle?
Just as with any app, Zelle has disadvantages. They include:
- Inability to cancel a payment after it’s been sent if the recipient is enrolled in Zelle
- No availability of a Zelle-branded debit or credit card
- Zelle account can’t be linked to a credit card
- No ability to maintain a cash balance with Zelle
Read More: Cash App Vs Venmo
What Is Venmo?
Venmo is like a savings account. You put money in and it collects interest. Instead of using a password, you set your phone up as an ATM card, so when you make purchases from participating retailers the cost comes (Venmo Vs Zelle) out of your business account. Transactions may come with fees, like overdraft fees if you move money out of your Venmo balance too quickly!
What Are the Pros of Venmo?
- No monthly or annual fees
- Ability to use Venmo app for online or in-store purchases
- Availability of Venmo-branded debit and credit cards
- Ability to maintain a cash balance in Venmo account
- App’s social media-style features may appeal to some users
What Are the Cons of Venmo?
- Fees for some services
- Privacy may be compromised unless you adjust privacy settings
- Money is unavailable instantly unless you pay a fee
- No ability to earn interest on money on money deposited with Venmo
- Transaction limits, such as a weekly maximum of $4,999.99 for person-to-person payments (Zelle also has some transaction limits, but they’re set by your bank or credit union, not by Zelle.)
Features of Zelle and Venmo
If you’re still unsure about whether to use Zelle Vs Venmo, compare their features:
|Payment/transfer methods||Transfers between linked bank or credit union accounts||Venmo funds, credit, debit and bank transfers|
|Availability||U.S.-only transactions||U.S.-only transactions|
|Fees for sending money using bank transfer or your account balance||Free||Free for standard transfers (1-3 business days); 1.5% for instant transfers|
|Credit card transaction fees||N/A||3% fee|
|Debit card transaction fees||N/A||Free|
|Transaction limits||Ask your bank about its limits; sending limit of $500 for accounts with banks that don’t participate in Zelle||$299.99 weekly transaction limit for unverified users; $4,999.99 person-to-person sending limit for verified accounts|
|Bank account transfer times||Takes only minutes||Instant for a fee; otherwise within 1-3 business days free of charge|
|ATM withdrawal fees||N/A||Free Money Pass network withdrawals; $2.50 charge for out-of-network withdrawals|
|Security||Authentication and fraud monitoring||Data encryption|
Which app has the lowest price?
If you use Venmo, the next business day money transfer service is free. There is a 1% fee for instant cash transfers. With credit card payments, a 3% charge of the total transaction value would be assessed.
Prison is a terrific way to get your finances in order. It’s quick, easy, and free. You can save time by paying off outstanding debts and working on balancing your transaction history (Venmo Vs Zelle) with just one element on the hard side of things.
Is Zelle Faster Than Venmo?
Venmo is a modern solution to money transfer. It lets anyone with a smartphone or computer send and receive payments instantly for free, in any amount, from other Venmo users there are no borders or limits.
Zell’s payment system allows customers to transfer money as soon as desired. Large payments transfers may take up to three business days for the parties involved in the transaction to complete but this isn’t a problem if both parties are aware of this possibility from the outset.
Venmo Vs Zelle Which provides the best usability?
Venmo customers need a profile, and to connect your chosen payment method so you can use that payment method for sending and receiving money instantly. You can connect credit card or bank account to Venmo, but if you choose this as your payment method there is either a 1% fee or a 3% fee per transaction depending on when the transfer was made (on Vs off-peak hours). This isn’t ideal, you want fees to be as low as possible when paying for transactions because suddenly the 3% doesn’t look all that great over time.
The bank should be allowed to access the Prison Payment Network to easily send money directly to the recipient’s bank account. You can enable notifications so you are updated about your transactions and can request notifications for when the recipient withdraws money from their account.
How Secure Are Zelle and Venmo?
As you can see in the chart above, Venmo and Zelle make it easy to transfer money with a simple scan-and-pay feature that allows you to send money with only your phone. Both of these services make it safe to use your banking information by monitoring transactions and implementing authentication so there’s no chance of fraud.
And while both services are highly safe, Venmo is more secure because unlike Zelle, it has added protection like the option to PIN your account or enable multifactor authentication in the app.
Compared to Venmo Vs Zelle, the main disadvantage of the Venmo app is its limited ebb and flow. Some small banking subsidiaries may not have access to this service. Hence, peer-to-peer obligations may not apply to you.