Is Zelle Safe To Use?

August 19, 2024 By Johan Curtis No Comments 10 minutes

We live in a digital global village where everything is now possible with the help of mobile phones. With one tap of your phone, you can book a flight to a different country and pay for the ticket from your phone. Well, it isn’t the phone you are paying from, but an e-service connected with your bank that takes care of fully end-to-end encrypted transactions. Zelle is another digital payment network that requires the sender and the receiver to have a US bank account. So, what is Zelle? Is Zelle safe for online transactions?

NOTE: Mobile digital payment apps like Zelle are made to ease the process of transactions over the phone for users across the country. However, to add an additional layer of security to your track for a seamless transaction, get a premium FastestVPN subscription and secure your digital payment apps and accounts.

This blog will highlight the most frequently asked questions by people already using the application and potential future users.

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What is Zelle?

You may have heard of Venmo or used PayPal for endless online transactions. Applications like Apple Pay, Wise, Skrill, etc., have always existed. However, with globalization, people keep changing their approach to things here and there.

Zelle is a US-based network created in 2017 for digital payments. A private financial services company runs it, and is a peer-to-peer payment service with over 2000 banks across the States partnering with the application. To make a transaction on Zelle, users must have a US bank account linked to Zelle to facilitate the transaction.

You may wonder why Zelle is used when hundreds of other digital banking applications are already available. Not only is Zelle safe to use, but it also offers numerous benefits to users, making it a standout candidate among other digital payment apps.

Apps like PayPal and Venmo charge a fee, whereas Zelle offers free transactions. Besides this and several other benefits, Zelle is also co-owned by seven big banks, making it an instant attraction among users and establishing its brand value, not publicly traded.

Which seven banks own Zelle? These include Bank of America, Truist, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank, and Wells Fargo, all belonging to Early Warning Services LLC, a private financial services provider firm.

How does Zelle Work?

Existing users must already know this, but new users must have US bank accounts to use Zelle. It is crucial for both the sender and recipient to have Zelle accounts to ensure seamless transactions.

While initiating a transaction, a payer would normally think, is there any risk to Zelle? For a seller, however, questions like Is Zelle safe to receive money from strangers, or Is Zelle safe for sellers? To which the answer is Zelle is the safest when it comes to online payments.

Zelle works when a person transfers money from their phone application to the other person’s or business’s Zelle account, which is connected to the person’s bank account.

The transactions work on a single-click basis, so you must be extremely careful when sending and receiving money online.

Research claims that over 53% of Americans use digital wallets more than traditional payment methods, and Zelle is predicted to outgrow its users this year.

How to Use Zelle

People mostly ask if Zelle is safe to send money, but before you can get your answers, you must learn how to use Zelle properly.

Connect and configure your mobile number with your Visa or MasterCard debit card through the Zelle application. Once you have configured everything and sorted out every detail, sending and receiving money with a single click will become fast, seamless, and free of cost.

Zelle is only available in the United States and only gives the go-ahead to domestic transactions. To use Zelle outside the states, you must have the best premium Zelle VPN installed on your device and connected to the servers back home. FastestVPN has US IP addresses for you to ensure seamless digital transactions online.

Is Zelle Safe to Use?

Day-to-day activities like sending money to your friends online for the dinner bill that you owe them from before, lending them some money when they are in need, and other activities that involve low to no risk are safe and easily carried out on Zelle.

However, safety risks arise when the amount considered is considerably large. No one can access your Zelle account, nor can Zelle deduct or transfer your money on its own. It can only be done by the user himself.

How To Be Safe When Receiving Money From Zelle?

To ensure safety while being on the receiving ends of funds transfer on Zelle, make sure to provide the correct details to the buyer in order to receive payments hassle-free. These details only include your bank account number and, if need be, only your bank’s SWIFT code.

Never share personal information like passwords, pins, and other credentials ever to a stranger online.

To check if your Zelle account has been debited with the X payment, check directly from the application installed on your device. Never trust the stranger buying from you or their screenshots provided until you have verified the payment being received yourself.

Is Zelle safe to receive payments?

The chances are rare, but Zelle is a trustworthy application if you use it correctly to receive and send payments. You only have to share/receive the account number of the person you are trying to transact with.

However, it is best to only make transactions on Zelle with people you may know. If someone is a complete stranger in an online marketplace, the best way to ask for money is by cash or an interbank transfer on the spot.

Why Must You Start Using Zelle

With its benefits, more and more people want to know about Zelle. People are sold on the idea that the Zelle app doesn’t charge a penny for any transaction. Apart from this, let’s have a look at why must you use Zelle:

Your Zelle account is automatically connected to your bank. For basic tasks, you don’t have to visit the bank. You just pay for what you need and who to pay directly from the app.
The Zelle app is very secure for those who engage in P2P transactions almost daily. The app charges nothing for sending money to other Zelle users.
Sending and receiving money from Zelle takes minutes. You don’t have to write a check or go to a nearby ATM—you can do it from your phone.

Is Zelle safe to send money?

According to the official report by Early Warning Services LLC, in 2023, more than 120 million consumers and small businesses used Zelle for online transactions. This drove the yearly transactions to a record amount that was reported to be 2.9 billion in 2023, 28% more than the previous year.

This report clearly shows that more and more people are becoming fascinated with Zelle’s services. However, using the app to engage in business or transactions with complete strangers is not safe.

If a stranger asks you to deposit money in their account for something you purchased from them on the marketplace, it could be a red flag. In some cases, the other person could also transfer you a small amount of money and ask you to return it through an external link.

Beware of these scammers and fraudsters. The best way to escape this loop is to meet strangers you are dealing with in a public area with a bank nearby to make the deposit/withdrawal on the spot.

How to prevent getting scammed when using Zelle?

So, can you get scammed with Zelle? Know this: You will never be scammed by the official application. However, the chances of being scammed by a person trying to be someone else are high, as people may disclose personal information to a stranger in the scenario they are presented with.

Contrary to common belief, it’s not easy to scam while using Zelle unless you know you are being scammed. Millions of people worldwide get unexpected, uncalled-for scam calls.

The scammer would typically ask for your account details, like the account number, the pin, the OTP, the MFA bypass key, etc. Remember, to keep yourself safe from such calls and texts, never disclose your personal information to anyone, especially those whose calls you are never expecting.

However, make sure of these guidelines, and you will be good to receive payments and send money on Zelle:

Ward off any strange request from an unknown caller asking about your banking credentials or Zelle information.
When making a deal with a random stranger that involves cash, ask for cash instead of transactional screenshots.
Refrain from sending people or organizations advance payments and immediately cut their calls.
Check for payments made online directly from the app, and don’t trust pictures of transactions or messages on your eSIM confirming the payment has been received.
Sometimes, you may get an X amount of payment credited to your account out of nowhere. A scammer usually calls you and asks you to transfer it back. Make sure you never click on any link or contact they send and return the money received directly from the app. Such attempts are made to hack into your systems through phishing and snooping.

How To Keep Your Funds Safe When Using Zelle

The Zelle app doesn’t charge the user to receive or send money, nor does it send money from your account. The user makes all transactions. Zelle recommends users only engage in transactions with known individuals and trustworthy businesses.

If you keep a sufficient amount in Zelle and want your funds to be safe in your account, only deal with friends, family, and people you trust when making purchases or sending money through Zelle.

Another way to ensure your funds are kept safe in Zelle is to ignore calls from unknown numbers asking for your account details and other confidential information. Remember this: no bank will ever call you to confirm your account details or ask for your PIN and OTPs.

Who Must You Accept Zelle Payments From?

To ensure safety while dealing with online transactions, only accept and transfer payments from people you know.

Is Zelle safe to receive payments when selling things in person?

According to Zelle itself, never engage in transactions with a complete unknown. If you are a seller, meet the buyer at a planned location and ask them for a cash payment first. If the amount is not safe to carry in cash, then make sure they deposit it in your account on the spot. Check with your bank teller or your balance to ensure the payment is confirmed and you can close the deal on time.

Can You send money internationally using Zelle?

Zelle is a digital payment network operating only in the United States. It is connected to more than 2,000 banks in the United States. To make transactions on Zelle, both the payer and the payee must have a Zelle account through their bank accounts.

However, if you have to use Zelle to transfer or receive money from a stranger, never share anything except your account number with the other person, even if they insist. Ward off their demands and finish the transaction, ultimately focusing on receiving/sending money without falling into any scammy trap.

The End

While Zelle is a safe peer-to-peer digital wallet type software that helps pace users’ interbank transactions, people also find themselves in odd situations. Such situations involve people getting scammed by strangers. To safeguard your online transactions and ensure nothing like this happens to you, get a FastestVPN subscription to act as a double layer of security when making online transactions. Moreover, scammers usually ask you to click on unusual links. However, you will never be redirected to open these suspicious files or links with a VPN, as it will act as your online protector.