Posted by Chuck on July 25, 2017
Banks

Published on July 25th, 2017 | by Chuck

81

Zelle Review: Send Money to Friends with any Bank, Free and Instant Transfers [Formerly Clearxchange]

Zelle Review

Zelle (Link) is a free service used by most major banks to send money freely between friends. Instead of having an outside provider (like Paypal, Venmo, or Square) pull the money from your bank and send it to your friend’s electronic wallet, Zelle pulls the money directly from your bank and deposits it in their’s. This saves having the extra account, and can make for a faster transaction.

The company was formerly known as Clearxchange, and is being rebranded as Zelle (pronounced Zell, the final ‘e’ is silent). Chase QuickPay uses the Zelle/Clearxchange network, as do most other major banks.

Zelle – New Features

Two new features are being added as part of the transition from Clearxchange to Zelle:

  • Transfers from partner banks are now instant. This is an awesome feature when it works – only those banks within the network will transfer instantly. You can send money to anyone, even those with who bank with non-partner banks, but it can take a few days.
  • Send money with just an email address on mobile number. Previously, some banks may have required the person’s name or address in order to send funds. Zelle just needs an email or phone number, similar to the way Paypal and Square work.

Affiliated Banks

Full list of banks and credit unions who use Zelle can be found here. Here are some of the bigger one’s: Ally, Bank of America, Capital One, Chase, Citi, PNC, TD, US Bank, USAA, and Wells Fargo.

Some of these have not yet completed the integration into Zelle, as of this writing, and will be doing so in the coming months. Chase QuickPay now calls themselves ‘Chase QuickPay with Zelle’ which helps people understand that it works even for transfer to non-Chase recipients.

Each email address or mobile number is linked to one bank. If you receive money to two different banks, you can use separate email addresses and link one email with one bank and another email with another bank. Or use your email address for one bank and phone number for the other. You can even use Zelle this way to instantly transfer money between two of your own bank accounts.

Limits

Zelle doesn’t have any sort of limits, rather each using bank decides on how much they’ll allow. Here’s Chase’s rule and here’s Capital One’s.

I don’t know of any limits for receiving money with Zelle. They might make you go through additional verifications (e.g. give in the last 4 of your SSN) to receive larger transactions.

Since the money goes straight from sender to recipient, Zelle should not be issuing any 1099 tax forms. (In some scenarios a sender needs to issue a form 1099 to the recipient.)

How to Send with Zelle

Sending money with Zelle is done through your bank’s website or mobile app. You should see a Transfer or Send Money tab somewhere. That uses the Zelle network.

Ask the recipient for their email or phone number, even if they’ve never used Zelle before, and add them as a recipient in the app/website. The system will have you name your recipient; you can use their real name, their nickname, or whatever you’d like, just make sure the email/phone number is correct. You can see a walk-through with screenshots in this Travelwithgrant post.

Clearxchange has their own website to send money. This is used for those whose banks are not part of the Zelle network, they can send money using the Clearxchange website. Alternatively, you can use the Zelle app (iOS, Android) which transfer money by linking your debit card instantly.

How to Receive with Zelle

Anyone with a US bank account can receive money with Zelle, even if their bank is not a Zelle partner. This means that you can send money, for example, from your Chase bank account to anyone with a US bank account.

The recipient gets an email/text from Zelle asking them to link their bank account. If they’ve previously used this email address or phone number to receive money with Zelle/Clearxchange they don’t need to register again. The money will go straight to their bank account within a few days, even if the previous transaction was with someone else or with a different bank. It’s all tied to the email address or mobile phone number.

Note, the recipient may have to verify themselves with Zelle with their name, address, or even the last 4 of their SSN, but none of these details are passed on the sender. Sender only sees the email address given to them.

Final Thoughts

I think the instant transfers feature makes all the difference. When sending your friend $10 for the cab fare, you want the transaction finalized instantly, you don’t want them getting an email about funds which will hopefully come in 3 business days. The huge conglomerate of banks means that a high percentage of Americans will be eligible for instant transfers will Zelle, and even those who use other banks can receive money with slower delivery.

It remains to be seen if people will finally start using direct bank transfers instead of the various money transfer operations like Paypal, Venmo, Square Cash, and Facebook.

Related Posts:



81
Leave a Reply

avatar
 

  Subscribe  
newest oldest most voted
Notify of
Nil
Nil

I think this is going to be invaluable in transferring out the remaining balance before closing a bank account. I just did it to zero out a wells account. Would call to close now. It literally took minutes.

alopecoid
alopecoid

FYI: Google Wallet has had “near-instant” fee-free transfers for a while for many banks, as long as using debit cards (and the sending/receiving banks don’t hold up the transfer).

“If a debit card is set as your default payment method, your bank will likely post the money to your account within minutes. For some banks, it could take up to 24 hours.”

I think Google Wallet was the first implementation of the underlying protocol that is used by Zelle/Clearxchange, but I can’t remember the source of that information, so don’t quote me on that yet.

Gerry
Gerry

Of all the services available, IMO Google Wallet is the best – and you are correct, the transfers are consistently near-instant – whereas with Zelle, it is not always depending on the individual bank – i.e. Wells Fargo doesn’t allow their accounts to receive instant transfers unless the sending account is a WF account.

G
G

I’ve been able to send myself money from USAA to my Wells Fargo Checking (via Zelle) a few times now and I got instant credit at Wells, so this might be YMMV.

(FWIW I get instant credit at USAA when sending money from WF as well, but since I also get instant credit for ACH at USAA it’s not really a big deal)

Gerry
Gerry

You’re probably right in that YMMV… Zelle just seems a bit half-baked now… hopefully they’ll work out the bugs. As far as what the WF CSR said about transfers needing to be between two WF accounts to be instant doesn’t appear to be accurate from the feedback here.

Bob
Bob

That is not true. I have received transfers from US Bank, BoA, Chase for my WF account

Gerry
Gerry

I’m not saying you won’t receive transfers… I’m saying they won’t be instant unless they come from a WF account. A friend of mine called WF and the CSR told him that was the rules.

Ben
Ben

I believe you were told misinformation. Any account at a clearxchange affiliated Bank will allow for ‘instant’ transfer. Non clearxchange Banks will go through the standar ACH rails.
Even within clearxchange the money doesn’t transfer instantly, but you’re given credit instantly.

Elmer
Elmer

CSR = -1

Bob
Bob

I received instant transfers. WF is my main checking and boa, chase, us bank all work instantly to WF.

Gerry
Gerry

Ben, I think you hit on it when you stated that “will ALLOW for instant transfer”. After speaking with CapitalOne they told each transaction is evaluated by some mysterious criteria and then the bank codes whether or not a particular transaction will be done immediately. The CSR didn’t have that information, so now they have escalated and are researching. Obvious answer, CapOne and WF have an issue in their handshaking. They are investigating. You’re right about the WF CSR, that just sounded like hard sell tactics – but we all know that WF doesn’t do anything nefarious to get new business…. 😉

MSer
MSer

Anything that wil allow me to avoid PayPal is a huge win. Sure wish more online merchants would offer alternate paymemt methods. As much as I hate Paypal, I trust their security a tad higher than random online merchants

Gerry
Gerry

My personal observations: I don’t believe this is going to be the “Venmo Killer” as it has been hyped. There are a few more issues with Zelle. For example, Wells Fargo doesn’t allow their customers to RECEIVE instant transfers unless the sending account is Wells Fargo – and Wells Fargo is an “Affiliated Bank” – so much for that. Also, there is no consistent way to REQUEST money as Google Wallet, Venmo, Square, etc. allow. Capital One doesn’t have this function in their app at all and Wells Fargo just sends an email that someone is requesting money. Basically, if you want to REQUEST, you do it manually yourself. The one positive I have found (At least with Capital One 360) is that your checking account ledger contains the MEMO contents that were specified when the transfer was made – instead of the non-descriptive comment from the other services. I believe Zelle’s rollout has left much to be desired. If you want to try Zelle, don’t do it with Wells Fargo. At least Capital One 360 does the instant transfers. As far as REQUESTING money, Zelle doesn’t do that… you have to manually do it yourself.

Lrdx
Lrdx

How free is this service?
I don’t think I can avoid the $3 ACH push fee from my BofA account? (I pull from the other side anyway, and there are millions of free credit unions, so whatever.)

Mike
Mike

Doesn’t boa bill pay avoid the $3 fee?

Lrdx
Lrdx

It does, but I don’t think it’s usable to move money between my own accounts..

Mike
Mike

I was told by a CSR that if you set yourself up as a recipient it will bypass. I have not tried it though.

Gerry
Gerry

There are no additional fees for Zelle, nor the other services as long as you are using your bank account or debit card as the source of funds. Zelle features vary depending on your institution. For something that works with all banks in a consistent manner and is free, use Google Wallet.

sam
sam

can I send money if I don’t have enough in my account will it go through?

Yet Another Redditor

Yeah, set your alternate email address at the target bank and you can use Zelle from BofA for free. Have used it this way already.

Matthew P
Matthew P

Has anyone figured out if there’s an easy way to manage multiple bank accounts with the same owner? Seems like it is inseparably linked to your phone number/email address, and you can only have one account per number/address. Unless I’m missing something.

Gerry
Gerry

No, you’re not missing something. You have to have a unique identifier for each account. This is due to the design of Zelle; the money is sent directly into the target bank account. If you’re wanting to use one service with multiple banks easily, use Google Wallet, PayPal, etc. Money coming into your account with those services are stored on that account, then you transfer the funds out to whatever bank you choose.

Yet Another Redditor

Create multiple email addresses at gmail like first.last01@gmail.com, first.last02@gmail.com etc.
Setup forwarding from those to your primary gmail address first.last@gmail.com
Then set those as your primary email address at the secondary banks
Now, since you have unique email addresses at each of the banks, you can Zelle between your accounts.

Alternatively, if the bank supports the “+” character in your email address, anything after the + is ignored (like from first.last+discover@gmail.com) and routes to the base email address of first.last@gmail.com

David
David

I have been using clearXchange for a while. All four big banks use this for p2p money transfer. However, it would be much better if they have their own app because one email or one phone number can only be registered once with one bank account. It took me a while to figure out which account my phone number was associated to.

G
G

I’ve used Zelle a few times now to transfer money between my own Wells Fargo and USAA accounts and it worked quite well.

Moving money into USAA has always been easy (they give instant credit for incoming ACH pulls) but pushing money to my WF account always took a day or two. When I use Zelle (rather than ACH) to send from USAA the money shows up at Wells Fargo just a minute or two later. So far I’m quite pleased with it.

I just have to remember which account has my phone number associated with Zelle, and which has my email address.

Abey
Abey

I still like my cash app better, it feels more organized. (They offer instant transfer for 1%).

PT
PT

I wonder why “Transfers from partner banks are now instant” is claimed to be a new feature? This was working between a number of the biggest banks on ClearXchange back in mid-2016 according to press releases as they phased in instant transfer. Zelle is just a rebranding basically, as more banks and credit unions join and as banks like Chase, BofA, etc added Zelle branding to their mobile apps recently. I personally have been using these instant transfers for 4 months and it works great for my very simple application (B of A me <– Chase from other people who owe me money).

BTW, for those who may only keep savings accouts (not checking) at these banks:

B of A Savings only – B of A allows you to do instant send and receive to/from other banks in the Zelle/ClearXchange system using only a savings account & without fees; obviously, be careful of the 6 withdrawl/mo limit that apply to all bank savings accounts, though it should only apply if you initiate a send; supposedly, it is supported on the BofA app now, but I just use the website

Chase savings – Chase does NOT support QuickPay on savings accounts, and thus not Zelle transfers

Yet Another Redditor

I have used Zelle as an alternate way to do around bank to bank ACH transfers.
I don’t know if it would have successfully met the DD requirements for bonuses too.

When we setup ACH between a hub account and a target bank, we need routing #, account # and if is not instantly setup, a 2 day wait for trial deposits, follows by another 2-3 day wait for actual deposits.

How I got around it is this:
1. My primary bank account with, say WF, has my email address 1 registered
2. Registered my email address 2 with Chase
3. Transfer from email address 1 to email address 2
4. Instant transfer!

Ellie Arroway
Ellie Arroway

Anyone try gmail aliases with Zelle? This way you could setup an address for each of your accounts. Something like myemailladdress+chase@gmail for your Chase account and so on.

Shivansh Chandnani
Shivansh Chandnani
Jennifer
Jennifer

Does Zelle work for International transfers? Can someone from Outside USA send money to me in USA via Zelle?

Right now i am using PayPal which sucks as i do not see any other option and it charges hefty fee for receiving money….

Best ideas/suggestions?

Gerry
Gerry

Zelle is available to U.S. bank account holders only. I know of no other solution at this time other than Paypal. Google has rolled out Google Wallet in many countries but hasn’t yet turned on the ability for international transfers. I would imagine it’s a regulatory issue.

Yet Another Redditor

TransferWise?

boridi
boridi

I had used Chase QuickPay and Capital one 360 P2P payments before Zelle. Just tried to transfer $1600 from my Cap One 360 acct to my Chase acct, but I had to do a phone verification text. However, I kept getting errors about an invalid mobile number, possibly because my mobile number is linked to both accounts. Maybe they’ll let me skip the verification for smaller dollar amounts

Taylor
Taylor

Yeah, Zelle requires a different phone or email for each account.You only have to verify a code once to register so I’ve set up throwaway emails when I use it to transfer from an account I’m churning.

Caryl Jersey
Caryl Jersey

Just recently used this new Zelle. While I never had a problem before in transferring monies to another’s account, we could not get this to work at all. Transferred from Capital One 360, money immediately taken and after 3 business days not arriving anywhere. Multitude of excuses. Zelle, which was completely registered on the other side and said it was complete, stated the transaction had to be reversed and try again. Faster to right a check. I also find this troublesome where I require quick transfers. I know Capital One is slow and the reason I do not use their bill pay but I have to question this move to Zelle. Not comfortable using this at all now.

Gerry
Gerry

You didn’t mention the other institution where you were transferring. As I mentioned above I had an issue with transfers from Capital One to Wells Fargo not being instantaneous – but they were completing within 3 days. I subsequently escalated the issue with both banks and it has been fully resolved. You might give it another try and politely escalate – or wait a few more months while they work out the issues and let others troubleshoot. 😉

Back to Top ↑