Zelle vs. Venmo: Which One is Better for You? (2024)

FAQs

Zelle vs. Venmo: Which One is Better for You? ›

Zelle doesn't charge any balance transfer or bank transfer fees. When you send money using Venmo, there are no fees for standard transfers, which usually take some time. If you need to send money instantly, Venmo charges a 1.5% fee. You can also view venmo business transaction fees, which are slightly different.

However, while Zelle may appear more secure, applications like Venmo and PayPal are just as secure. All of them use data encryption to protect users against unauthorized transactions and store users' data on servers in secure locations. Venmo also offers users the ability to set a PIN code for access to the mobile app.

Cons. Limited functionality: Zelle only allows person-to-person transfers between U.S. bank accounts. If you want to add a credit card to make payments or send money to someone internationally, you'll need to use another payment app.

However, Venmo is not without its drawbacks, including security concerns, fees for certain transactions, and privacy issues. As such, it's somewhat inefficient for instant money transfers. In the end, though, your final choice will depend on your individual situation, financial capabilities, goals, and ongoing demands.

Zelle^® is a fast, safe and easy way to send and receive money with friends, family and others you trust - no matter where they bank¹. It's important that you know and trust those you send money to. Because once you authorize a payment to be sent, you can't cancel it if the recipient is already enrolled in Zelle^®.

Beware of payment scams: If an offer sounds too good to be true, it probably is. For example, a stranger selling online concert tickets at a steep discount and insisting you pay with Zelle^® may be a scam. Zelle^® does not offer purchase protection, so pay it safe. Only send money to people you personally know and trust.

The security of Apple Pay is one of the safest to date. It works through a separate chip in the device called the “Secure Element”, and for each transaction, this chip sends a one-time code that encrypts your data. In layman's terms, the chip acts as a middleman to make sure that the transaction is performed securely.

People can send money almost instantly via Zelle, but that convenience has made the app a target of fraudsters and scammers — and Zelle doesn't always reimburse users who lose money due to unauthorized transactions, even though such reimbursem*nts are required by law, lawmakers say.

With access to your Zelle, threat actors can drain your bank accounts. There's no guarantee that you'll get your money back, which is why you must take the necessary steps to secure your Zelle and other financial accounts.

Many top banks offer Zelle, allowing users to send funds to trusted family members and friends. Sending limits usually range from $500 to $5,000 per day and $10,000 to $20,000 per month, though some banks may allow you to increase your limits.

When should you not use Venmo? ›

Venmo should only be used to transact with people you know. Do not use Venmo to pay or receive payments from people you don't know, especially if the payment involves the purchase or sale of a good or service. Such payments are potentially high risk and you could lose your money without getting what you paid for.

Don't hold large balances in your account: Only funds added to your account via direct deposit or remote check capture are Federal Deposit Insurance Corporation (FDIC)-insured, so Venmo is not a safe place to store large amounts of money. Your money is safer stored in your bank account.

Your money doesn't go directly into your bank account

Once you get paid on Venmo, the payments don't go directly into your bank account. Strange, right? You have to go in and manually transfer money out of your account, making for a cash flow nightmare.

Some people prefer Zelle to Venmo; others love Venmo more. Both of the payment services are decently safe, have user-friendly interfaces, and allow you to conveniently send money when you need it. Zelle stands out from Venmo with its absence of instant transfer fees, but it also cannot be used as a wallet.

Limited Social Interaction. Unlike some of its competitors, Zelle lacks social elements, making it less suitable for users who prefer a more interactive and socially connected payment experience.

While Zelle is a legitimate and secure service, Zelle scams can risk account takeovers, identity theft, and more. Look to LifeLock Ultimate Plus to help protect your identity from scammers. Zelle can make money transfers quick and simple.

Will Venmo Refund Money If You've Been Scammed? In most cases, the answer is no. There is no way to cancel a Venmo payment once it's been sent. Venmo also typically doesn't get involved in financial disputes between users (instead, you're better off contacting your bank).

Linking bank accounts to Venmo is generally safe, but not without risks. You should implement extra security measures when linking bank accounts or credit cards to Venmo, such as setting up multi-factor authentication on both your Venmo app and your online bank accounts.

Venmo, the popular payment app, is a perfect target for scammers and cybercriminals. From malware to social engineering attacks, hackers have a variety of ways to target Venmo users.

Apple Pay and Apple Cash are more secure than shopping with a credit card or sending money through most other apps. That's because you need to authorize transactions with Face ID, Touch ID, or your passcode.