July 18, 2023 |7 min read
Picture this: You’re out to dinner with a big group of friends. When the bill comes, you find out the restaurant doesn’t do separate checks—and no one has cash. So one person covers the bill and everyone else grabs their phones to pay them back.
If that sounds familiar, you’ve probably already used a digital payment service to transfer money. You just might not know that’s what it’s called. A digital payment service is pretty much exactly what it sounds like. It’s an app, website or service that helps you digitally send and receive money. From splitting bills to making online purchases and beyond, here are details about a few digital payment services.
Key takeaways
- Digital payment services let you send and receive money online.
- Not all services operate in the same way.
- It’s important to know how each one works so you can choose a service that suits your needs.
- Capital One cardholders can send money with Zelle® directly from the Capital One Mobile app.
Try a more secure way to pay
Add your card to a digital wallet from the Capital One Mobile app.
Download the appPayPal
PayPal is a way to check out at millions of online stores. When you use your Capital One card, you can expect the same benefits as always—and you might even be able to redeem your Capital One rewards. You can also use PayPal to send money to friends and family.
There are no fees for opening a PayPal account. But there might be fees for certain transactions, like receiving payments from outside the country.
Zelle®
Zelle® is a way to send money directly to almost any bank account in the U.S. Zelle® payments typically only take minutes to complete when the sender and recipient are both enrolled. Payments are designed to be secure by using just your U.S. mobile number or email address—not your bank account info—to send or receive money.
Capital One doesn’t charge fees for sending or receiving money with Zelle®. But if you’re using another bank or credit union, Zelle® recommends checking whether it charges any additional fees. Zelle® is already in more than 2,000 credit union and banking apps—including the Capital One Mobile app—making sending and receiving money easy and convenient.
All you have to do is enroll with Zelle® through the Capital One Mobile app and follow a few simple steps. After that, sending money with Zelle® through the Capital One website or mobile app is simple.
Venmo
Venmo is a digital wallet that lets you send money, request money and make purchases from authorized merchants.
There are no fees to set up a Venmo account or keep it open. And there are no transfer fees for sending or receiving money using your Venmo account, linked bank account or debit card. But there are fees for things like instant transfers and sending money using a linked credit card.
Cash App
Cash App lets you send, receive, spend, save and invest money. You can download and use Cash App on your iPhone or Android mobile device.
Cash App accounts are free to open. And standard deposits to your linked bank account or debit card are free. There are fees for things like instant deposits and sending money from a credit card.
Meta Pay
Meta Pay—formerly known as Facebook Pay—is a way to send money, shop or donate via apps you might already use, like Facebook, Messenger, Instagram and WhatsApp.
There are no fees to send or receive money with Meta Pay through Messenger.
Google Pay
Google Pay™ is a way to pay and manage your money. You can use Google Pay to send money to anyone in the U.S. via a QR code or with their name, phone number or email address. You can also store credit cards, debit cards, transit passes and more in Google Pay for quick, easy access right from your phone. With security built into every payment, Google Pay is safer than swiping your card or paying with cash.
Google Pay may charge fees for things like transferring money out with a debit card.
Apple Cash
You can use Apple Cash to send money to and receive money from friends and family by using your iPhone, iPad or Apple Watch. The money you send can come directly out of your Apple Cash balance or you can send money from your debit card.
Apple Cash might charge fees for things like instant transfers.
Money transfer services FAQ
Here are the answers to a few questions you may still have about money transfer services:
What’s the difference between a money transfer and a wire transfer?
According to the Consumer Financial Protection Bureau (CFPB), the term wire transfer can cover “any electronic transfer of money from one person to another.” So you might hear wire transfer and money transfer used interchangeably.
But as the CFPB puts it, a wire transfer is a particular method for sending money. It’s often a larger sum from one bank or credit union to another using an electronic transfer of funds.
How can I send money online?
There are many different ways to send and receive money online. Which one you choose depends on a variety of factors like how much you need to send, where you’re sending the money and how fast you need it to arrive. And the exact process for sending money online depends on the money transfer service you choose.
If you need totransfer moneybetween bank accounts at the same bank, you can typically do that from your online banking account. To send money to an account at a different bank, you could use one of the money transfer services, digital wallets or payment apps above.
Just keep in mind that using a credit card to transfer money may be considered acash advance. And there may be additional fees associated with cash advances.
Are online money transfers safe?
As the CFPB notes, with “new payment methods come new risks.” The agency has tips you can use toavoid mistakes when transferring money. And you could also check with individual services, likeZelle®, about how to use them safely.
How long does it take to transfer money?
How long a money transfer takes depends on a few factors. That includes which service you use, what kind of transfer you choose and more. But you can typically expect your domestic money transfer to arrive to the recipient’s account within the same business day.
If you need the money to arrive by a certain time, do your research before you hit send. And make sure you know about any fees that may be associated with faster processing times.
Digital payment services in a nutshell
There are many money transfer services out there. Now that you know more about how they work, you can make sure to choose the right one to suit your needs. Just remember to do your research, read the fine print and do everything you can to better secure your money.
Learn more about how Zelle® works.
