How Does Zelle Make Money


Right now Zelle is completely free to use. So, there is no subscription fee or monthly charge to use this payment platform. Currently, Zelle is participating in banks to generate revenue whenever someone pays a business in exchange for goods and services. Here, merchants pay a 1% charge to Visa or MasterCard and share that revenue with the issuing bank.

Key Takeaways

  • Zelle is a popular America-based peer-to-peer (P2P) payment network owned by Early Warning Services
  • Zelle provides fast, safe, and easy payment facilities so you can receive and send money to your friends, family, and others instantly
  • In 2021, Zelle users have sent an astonishing $307 billion in 1.2 billion transactions
  • Zelle reduces the transaction time and allows users to send money from one checking account to another in a matter of minutes
  • Zelle doesn’t have an independent revenue-generating model and it mainly makes money by facilitating payments with banks

What Is Zelle?

What Is Zelle

Zelle is an online payment system that allows its users to send money from their bank accounts to anyone who is using the platform. Zelle is only available in the USA and US account holders whose banks are part of the Zelle network can use this payment getaway. Zelle was developed in collaboration with 30 major U.S. banks and there is an app that users have to download on their mobile to enjoy the facilities. Moreover, Zelle is also integrated with the mobile banking apps of major participating banks, including Bank of America, Chase, Citi, and Wells Fargo. So users who have their bank’s mobile banking app can use Zelle also.

How Does Zelle Works?

Unlike many other money transfer platforms, Zelle transfers money using Zelle Moves directly from one bank account to another. This A usual bank transfer requires account numbers of both accounts to initiate transactions. Moreover, this type of transaction can take up to several business days to complete. Zelle reduces the transaction time and allows the users to send money from one checking account to another in a matter of minutes. You will only require the email address or phone number of the recipient to transfer the money. The recipient will receive an email from Zelle indicating there’s a payment waiting for them. There is also a link to accept the payment. The recipient can accept the payment by clicking on the link. If the recipient is a first-time user then it might take three days to receive the funds. If the recipient’s bank is not a participating partner then the recipient has to download the Zelle app and register the account with an email to accept payments.

How Does Zelle Make Money?

Usually, Zelle makes money by facilitating payments with banks. However, Zelle doesn’t have an independent revenue-generating model. In recent years, the participating banks tried to impose fees for every payment made by Zelle but these plans were not implemented because other money transferring service providers like Venmo or Square Cash were free of charge. Moreover, the participating banks need to retain their customers from using other services or applications. So, Zelle is completely free to use. In 2018, Zelle launched a feature that allows its users to pay businesses for goods and services. If merchants use this feature then they have to pay up to a 1 percent payment processing fee to either MasterCard or Visa. Then the revenue is shared between Zelle and the banks that have issued the card. Zelle is planning to introduce its own debit and credit card in the near future. So it will be a revenue-generating source for them. Zelle can charge their customers who will use their cards. Moreover, Zelle also receives fees from participating banks for building and maintaining the Zelle network. But, as I told you before, Zelle doesn’t make any money from its users who transfer money using their app.

What Is Zelle’s Transfer Limit?

If you have a bank account in a bank that doesn’t allow Zelle then your limit for sending money is $500 per week. But, if your bank allows Zelle then you will be able to transfer larger amounts depending on your Bank’s financial limits. When it comes to receiving money on Zelle, there are no limits. Below are some major banks that allow Zelle and their daily and weekly transfer limits.

BankDaily LimitMonthly 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
Wells Fargo$2,500$20,000

What Banks Use Zelle?

Currently, Zelle is working with 924 financial institutions and banks. Most of the banks have the Zelle payment platform integrated into their mobile apps. Some of the major banks and financial institutes that have been partnering with Zelle are – 

  • Ambler Savings Bank
  • Amegy Bank
  • Amerant Bank
  • America First Credit Union
  • American Bank
  • BAC Community Bank
  • Bank of California
  • BancorpSouth
  • Banesco USA
  • Bank Five Nine
  • Boston Firefighters CU
  • Boston Private Bank
  • Bradford National Bank
  • Bremer Bank
  • Brickyard Bank
  • Comerica Bank
  • Communication Federal CU
  • Community Bank and Trust
  • Community Bank and Trust (MO)
  • Community Bank of Pickens Co
  • Community Bank of the Bay
  • C&F Mobile Banking
  • Cadence Bank
  • Discover Bank
  • Dogwood State Bank
  • Direct Federal Credit Union
  • D.L. Evans Bank Mobile
  • Dairy State Bank
  • E-Central Credit Union
  • Eagle Bank
  • East Idaho CU
  • Eastern Bank
  • Eastern Colorado Bank
  • First Pioneers FCU
  • First Republic Bank
  • First Seacoast Bank
  • First Security Bank & Trust Co
  • First State Bank, The
  • Grundy Bank
  • GTE Financial
  • Guthrie County State Bank
  • Gate City Bank
  • Gateway First Bank
  • Gateway Metro Federal CU
  • GECU
  • Haddon Savings Bank
  • Hamilton Horizons FCU
  • Hendricks County Bank
  • KeysBank
  • Keystone Bank
  • Kingston National Bank
  • Kitsap Credit Union
  • Libertyville Bank
  • Lowry State Bank
  • Loyal Trust Bank
  • Lumbee Guaranty Bank
  • Lyons National Bank
  • M C Bank
  • M&T Bank
  • Marion Center Bank
  • Marquette Bank
  • MCNB Banks
  • Meade County Bank
  • Natbank, N.A.
  • National Bank of Arizona
  • National Bank of Indianapolis
  • National Capital Bank
  • Nebraska State Bank & Trust Co
  • Needham Bank                      
  • Oak Bank
  • OCEAN Bank
  • Ocean Financial
  • Origin Bank
  • Osgood State Bank
  • PA Central FCU
  • Pacific Alliance Bank
  • Pacific Cascade FCU
  • Pacific NW FCU
  • Pacific Premier Bank
  • Pacific West Bank
  • Panhandle Credit Union
  • Park Bank
  • Quad City Bank & Trust
  • Quaint Oak Bank
  • Quontic Bank
  • Redstone Federal Credit Union
  • Redwood Capital Bank
  • Regions Bank
  • Reliance Bank
  • Reliance Bank (PA)
  • Renasant Bank
  • State Bank of Southern Utah
  • State Bank of the Lakes
  • State Department FCU
  • Stephenson National B&T
  • Sterling National Bank
  • Stockman Bank of Montana
  • Stockmans Bank
  • Tigers Community Credit Union
  • Timberline Bank
  • TLC Community CU
  • Touchstone Bank
  • Town Bank
  • Tradition Capital Bank
  • U.S. Century Bank
  • U.S. Employees Credit Union
  • Ulster Savings Bank
  • Umpqua Bank
  • Unified Bank                     

Full list of Banks:

How To Send Money With Zelle

Zelle allows its users to send money directly from their bank accounts. It’s very easy to send money with Zelle. Follow the below steps – 

1. First, you have to open your Zelle app on your mobile

2. Now you have to log in to your Zelle account

3. From the available options tap on “Send Money”

4. Now select the person to whom you want to send money

5. Then enter the valid email id if the recipient

6. In the next step, enter the amount you want to send and click next

7. Fill out the “What’s this for?” line with a valid reason

8. Finally, click on the Send button to complete the process

How To Receive Money With Zelle

Receiving money with Zelle is very convenient. If you already have a Zelle account then you don’t have to do anything to receive the payment. The amount will automatically add to your bank account. However, if you haven’t enrolled with Zelle then you have to open an account before you can receive money from Zelle. Now follow the below steps:

1. First, open your email and click on the link provided in the payment notification

2. Then Select your bank or credit union

3. Finally, follow the onscreen instruction to receive your payment

If your bank or credit union doesn’t allow Zelle then you have to download the Zelle app on your mobile and then open an account to receive the payments. In that case, you have to enroll with your debit or credit card.

FAQs About Zelle

1. Does Zelle Charge A Fee?

No, Zelle doesn’t charge any fees. With Zelle, you can immediately deposit money in your bank account and it’s completely free. However, if you make any payment to a business using your debit or credit card then you have to pay a 1% charge. 

2. Is Zelle Safe To Use?

Yes, Zelle is completely safe to use. Handling the cash or sending the checks via the mail is not completely safe so Zelle is offering hassle-free and secure money transferring option to you. The best part of Zelle is, the money never sits in a third-party location so your money is completely secured. Moreover, most of the major banks allow Zelle so your financial data are secured and they are protected by the banks.

3. Is Using Zelle A Good Option?

Well, the answer to this question depends on what purpose you are using the Zelle. From a neutral point of view, Zelle is free to use and you can transfer the money in a minute. Moreover, Zelle provides 100% security and protection for your money and financial data. So overall, Zelle is a good option to use for money transferring purposes.

4. Can I Receive Donations Through Zelle?

Zelle is not a good option when it comes to collect donations. Usually, there are transfer limits on individual Zelle accounts so sending donations can become a receipting nightmare for the senders.

5. Do Both Parties Have To Have Zelle To Receive Money?

Yes, both the sender and recipient must have a Zelle account to send and receive money.             

6. What Happens If The Recipient Does Not Have Zelle?

If the recipient doesn’t have a Zelle account then he/she has to enroll in Zelle with a debit or credit card. Then the recipient will be able to receive the money.

7. Can You Cancel The Zelle Transfer Once It Is Sent?

You can only cancel a Zelle transfer if the recipient is not enrolled with Zelle yet. To do so, you have to go to your activity page and then choose the payment you want to cancel. Then you have to select “Cancel This Payment” and your payment will be canceled.

8. What Happens If You Send Zelle To The Wrong Number?

If you send Zelle to the wrong number or a wrong email id then you can cancel the payment. However, you can only cancel the payment if the funds aren’t already credited to the recipient’s bank account. You can cancel the payment from your Zelle app as well as from the mobile banking app.



Last Updated on October 25, 2022 by Magalie D.

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