Zelle doesn't charge any fees to send or receive money.
For faster, bigger, or international transactions, a wire transfer is the better option—though it typically involves a fee. Zelle attempts to meet in the middle—though it relies on ACH methods and is bound by the same geographic limits, it leverages US bank relationships to expedite delivery.
If your bank or credit union isn't part of Zelle's network, you'll have to download the Zelle app and stay within significantly lower limits: $500 a week for sending and $5,000 a week for receiving.
Zelle isn't considered a wire transfer. Wires are used for large payments between bank accounts, such as the down payment on a new home – and you can send a wire transfer in the US or overseas. In comparison, Zelle is an ACH.
Banks charge a flat fee for sending a wire transfer. Domestic transfers tend to cost around $30, while international transfers generally cost more, approximately $40. In most cases, the recipient will pay an incoming wire transfer fee of around $20, along with intermediary bank fees for international wires.
Money sent with Zelle®️ is typically available to an enrolled recipient within minutes1. They will receive a notification via email or text message. We recommend confirming that the payment hasn't failed and you have fully enrolled your Zelle® profile.
Standard Zelle transfer limits
If you're not using a bank or credit union, you can transfer up to 500 USD per week via the Zelle app. You can also receive up to 5,000 USD per week from other Zelle users.
Zelle® does not report any transactions made on the Zelle® network to the IRS, even if the total is more than $600. The law requiring certain payment networks to provide forms 1099K for information reporting does not apply to the Zelle® network.
If you're sending a large amount of money, you may want to use a wire transfer at your bank. You'll need the recipient's account and routing numbers. You and the recipient will likely incur fees. Wire transfers take place in less than 24 hours but do not occur on weekends or on bank holidays.
No payment protection: Zelle doesn't offer any payment protection beyond the option to cancel a payment to an unenrolled recipient. That's fairly standard for other money transfer apps, too.
In addition to security concerns, wire transfers can prove costly. Payers are often charged wire fees, which may be sizable and discourage them from making the payment. Institutions could also receive short amounts as a result of additional bank charges.
Wire transfers can be made to domestic accounts or accounts in other countries. But they tend to be used primarily for international payments or large transactions, as bank transfers are otherwise faster and cheaper.
Although both methods involve electronic money transfers, they operate on different systems. Zelle is a peer-to-peer (P2P) payment service for transferring funds between individual bank accounts, while wire transfers are generally used for larger transactions and can be sent domestically or internationally.
Capital One 360 Checking account holders can send up to $3,000 per rolling 24 hours through Zelle®. But limits at other banks may vary.
Zelle app doesn't charge any money from the users for sending or receiving money to other users. The app's revenue model is charging commissions from banks to facilitate transactions. Further, merchants have to pay a 1% fee to Visa or Mastercard who can then share the resultant revenue with the issuing bank.
The new "$600 rule"
Under the new rules set forth by the IRS, if you got paid more than $600 for the transaction of goods and services through third-party payment platforms, you will receive a 1099-K for reporting the income.
Scams should be reported immediately to both Zelle and your financial institution. For advice on protecting your account and preventing fraud, dial +1_8[[886]]_690{{013}}for expert support. Zelle+1_8[[886]]_690{{013}}generally does not refund money if you are scammed, as payments are designed to be final.
Zelle tax 2024
If you have taxable income from Zelle, you will need to report it correctly. The law doesn't allow you to avoid taxes just because you don't get a tax form. Think of income from Zelle like a payment in cash.
Some notable financial institutions that NerdWallet has reviewed and that don't participate directly in the Zelle network include Alliant Credit Union, Barclays, Connexus Credit Union, LendingClub Bank, Marcus by Goldman Sachs, and Synchrony Bank.
Typically, there are no fees for consumers to send or receive money with Zelle®. We recommend confirming with your bank or credit union that they do not charge fees for Zelle® transactions.
Sending limits: For your security, we restrict the amount of money you can send to recipients. There are daily and 30-day (rolling) limits.
Domestic wire transfer: Due to EFAA regulations, most bank-to-bank wire transfers between accounts in the US are completed within 24 hours. Some banks make wired funds available to recipients immediately, especially on transfers between accounts at the same institution.