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

FAQs

Which is safer to use Venmo or Zelle? ›

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.

Potential scams and hackers.

The biggest downside to using Venmo is the potential for your money to be stolen. If a hacker gains access to your Venmo, it's pretty easy to change the associated bank account – so the hacker could change the account to their own and transfer the money in your Venmo to their bank.

Can I use Venmo to sell goods or services? The only way to accept payments for goods and services on Venmo is to be explicitly authorized to accept Venmo for purchases. This can be achieved by applying for a business profile or by having the sender tag a payment to a personal profile as a purchase.

Zelle^® doesn't charge a fee to send or receive money. We recommend confirming with your bank or credit union that there are no fees for Zelle^® transactions. Was this helpful?

Unlike many money transfer apps, Zelle does not charge a fee for instant transfers. Zelle transfers are generally secure, but the app does carry risks, including the risk of glitches at banks that can affect money transfers.

How to Get Your Money Back. Zelle is processing each scam claim they receive on a case-by-case basis. If you haven't already done so, file a claim directly with Zelle through their app or by phone (844-428-8542). You'll also need to file a claim with the bank or credit union your funds were taken.

The communication will include a link to a look-alike Venmo website where the scammers can capture your login information. From here, the scammers are able to steal your identity and use your account information to gain greater access to your bank account and your friends and family.

Zelle is a gateway service which allows you to send and receive - but not hold - funds. Venmo has a wallet function, so you can hold a balance. If your bank allows Zelle payments, you can use it with your regular online banking app - Venmo users will need a separate app to make payments.

Venmo has a Purchase Protection Program that offers some protection when buying or selling from a business account or a personal account that qualifies. But if you transfer money to a stranger or get scammed on Venmo, you most likely won't get refunded.

How do I get my money when someone pays me on Venmo? ›

Whenever you receive a payment on Venmo, that money is put into your Venmo account. You'll need to initiate a bank transfer to send the funds to your bank account. You can send the money in your Venmo account to your bank using the Standard or Instant method.

Does Venmo have a transaction fee for instant transfers? Yes, the app charges 1.75% of the total amount for instant transaction services. In addition, standard electronic transfers of funds to your account are processed without fees.

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^®.

Zelle® is free² to use.

When you send money to friends or family, it won't cost you any extra money for the transaction. Which is good, because there are way better things to spend money on, like concert tickets… or vacations.

Find out if your financial institution offers Zelle^®. Important: While you can typically use Zelle^® with people at different banks, at least one person must have a bank in the Zelle Network in order to send and receive money.

For those looking for a digital wallet that allows you to accrue and hold funds, Venmo might be the better option, as you cannot maintain a cash balance with Zelle. Additionally, payments sent through Zelle can't be canceled if the recipient is already enrolled with Zelle.

Venmo, Cash App, Google Pay, Zelle, PayPal, and wire transfer are some of the safest way to send money digitally. Money transfer apps are inexpensive and convenient options for paying family and friends. Wire transfers at a bank are ideal for securely sending large amounts domestically or internationally.

Does Venmo have fraud protection? Venmo has a Purchase Protection Program that offers some protection when buying or selling from a business account or a personal account that qualifies. But if you transfer money to a stranger or get scammed on Venmo, you most likely won't get refunded.

The safest way to receive money from a stranger online is to use secure and reputable payment methods that prioritize user protection. For instance, you can use a platform like PayPal to receive money from someone you haven't met before. You can also use cryptocurrency—it is a practical way.