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

Are you wondering which payment platform is better suited for your needs and goals? Zelle and Venmo are both popular peer-to-peer payment services that allow you to send and receive money quickly. While they are designed to fulfill the same purpose, some of their features differ significantly. 

In this article, you can learn about the difference between Zelle and Venmo so that you can make a more informed decision on which payment system is better for you.

Zelle and Venmo: What Do These Payment Services Offer?

Both Zelle and Venmo are digital payment services for sending and receiving money between friends and family members in the United States. Whether you want to return money to your colleague or split a bill at a restaurant, these apps are there for you

On the surface level, it may seem that the two services operate similarly, making some people wonder, “Is Venmo the same as Zelle?” The answer is no, as each of the apps has its peculiarities.  

One of the main differences between the services is that Venmo acts as a digital wallet so that you can keep money in it, while Zelle operates exclusively as a transaction provider. Also, with Venmo, you need to install a separate app, while Zelle may be used in your banking app if your bank allows such payments.

Difference Between Venmo and Zelle: In-Depth Comparison

Choosing the right payment service can be quite challenging because of how similar they seem at first glance. Let’s take a look at Zelle vs. Venmo in more detail. 

Fees

Obviously, there is a difference in fees between the two. 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. 

Transfer limits

If you decide to use Zelle, it is a good idea to find out about transfer limits beforehand, as they differ from one bank to another. For instance, if your bank doesn’t have a Zelle partnership, the weekly limit on sending money using the app is $500, and on receiving money — $5,000. 

Those with a fully verified Venmo account can send and receive up to $5,000 a day, while the monthly limit is $19,999.99. 

Availability

Neither Venmo nor Zelle is currently available internationally, so only those living in the United States can use these payment services. If you need an app for international payments, you should consider PayPal or another alternative provider. 

Compatibility

To install Venmo, you need to be an Android or iOS device user. Currently, there is no Windows app available. 

Zelle is already integrated into more than 2,000 banking apps. All you have to do to check whether it works with your bank or credit union is search for its name on the official website’s list. You can also download a separate Zelle app for Android or iOS. 

Customer Service

Both Zelle and Venmo have customer service teams that you can contact in different ways if you have questions or issues. 

When using the Venmo app, you can go to the “Get Help” section and use a chat. In a browser, you can also go to the Venmo Help Center to fill out a form. Another option you have is to call (855) 812-4430 from 8 AM to 8 PM CT every day.

If you need to contact Zelle’s team, you can go to the Contact Us page on the official website and fill out a form. If you want your issue to be resolved quicker, you can call 1-844-428-8542 from 10 AM to 10 PM ET.

Venmo and Zelle: Advantages and Disadvantages

Now that you have a basic understanding of Venmo vs. Zelle discussion, let’s review the pros and cons of each. 

Pros and Cons of Zelle 

The main advantages of Zelle include the following:

• Absence of fees; 
• Integration with a large number of banking apps;
• Instant money transfer; 
• Safe app with modern encryption and monitoring for fraud; 
• FDIC insured.

The disadvantages of this service are:

• No wallet function, meaning it’s impossible to keep your money in a Zelle account;
• No way to cancel a sent payment (it can only be canceled if another person is not enrolled in Zelle);

Pros and Cons of Venmo

When it comes to the advantages of Venmo, they include such:

• User-friendly interface with some social media features;
• An opportunity to get branded credit and debit cards with additional benefits; 
• Can be used for both in-store and online purchases; 
• Acts as a digital wallet where you can store funds. 

If you are thinking about installing Venmo on your device, you should keep in mind the following disadvantages:

• 1.5% fee on instant transfers;
• Payments are public by default (but you can always make your account private in the settings);

Final Thought 

Zelle or Venmo? 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. So, if you need a wallet function, you should go for Venmo. The choice should depend on how you plan to use these apps and your financial habits.

FAQ