What Is Zelle^® and How Does It Work?

What Is Zelle?¹

Zelle is a person-to-person payment service that allows you to send and receive money directly from your bank account using an email address or mobile number. It is an alternative to cash or checks for splitting bills or paying someone. Zelle is supported by many major banks, including KeyBank, and is free to use.

How to Send Money Through Zelle

To use Zelle, you must have a bank account with a participating bank or credit union. Once you have a bank account, you can set up Zelle through your bank's mobile app or online banking platform.¹

To send money, you need the recipient's email address or mobile phone number. Then you enter the amount you wish to send and confirm the transaction. The recipient will receive a notification that they have been sent money and must accept it. If they’ve already set up Zelle, the money will be deposited directly into their bank account. If they don’t have it, they will receive instructions on how to sign up and claim the funds. For the complete steps to set up Zelle, visit key.com/Zelle.

Zelle transactions are typically completed within minutes, and there are usually no fees associated with using the service. However, it's important to note that Zelle does not offer buyer or seller protection, so it's important to send money only to people you trust.

Is Zelle Safe?

Zelle is backed by the participating banks and uses the same encryption and security measures as online banking, so it is a safe way to send and receive payments. However, Zelle is only meant for paying people you know and trust. Always verify the recipient’s information before sending because you may not be able to recover your money. Defend yourself against Zelle fraud, and report any suspicious activity to Zelle and your bank immediately.

What’s the Difference Between Zelle and Venmo?

Zelle and Venmo are both digital payment services that allow users to send and receive money from their mobile devices, but there are differences:

• Transaction Completion Time
  Zelle transactions are sent within minutes, while Venmo transactions can take one to three business days to process.
• Who Supports the Application
  Many major banks and credit unions support Zelle, but Venmo is a standalone service owned by PayPal.
• Applicable Fees
  Venmo charges a fee for certain types of transactions, such as for goods and services. Zelle transactions are free.
• Transaction Limits
  Zelle has higher transaction limits than Venmo, which may be a factor for some users.
• Buyer or Seller Protection
  Zelle does not offer buyer or seller protection. Venmo offers insurance for transactions.