The world is increasingly dependent on our mobile phones, from making calls (do people even call anymore or do they prefer instant messaging?) to paying or sending money, it has become as routine as checking the time on our smartphone screens. You barely see anyone carrying cash anymore, and in fact, it’s become unusual to see someone pay with coins or count change to get the exact total of a bill.
Online money transfer platforms have been the biggest winners in this digitization process that began, approximately, during the COVID-19 pandemic, when people stopped using cash to avoid contact with coins touched by many hands. One of the amazing allies of our modern life is the Zelle app, it’s so useful you can pay for dinner with friends, send rent payments, or settle a little debt with a friend who had you on their personal “debtor list.”
So, if everything’s going so well with Zelle, what’s going on or why is it making headlines?
Well, Bank of America and Wells Fargo, two of the most widely used banking giants in the United States, have just changed the transfer limits with Zelle… and that could directly affect how you pay if you’re used to sending and receiving money through this platform. We explain everything below.
What is Zelle?
Zelle is a digital payment system that allows instant money transfers between bank accounts using just a phone number or email address. It’s completely free and is integrated into the apps of most major banks. It differs from other platforms (like Venmo or PayPal) because Zelle transfers money directly from one bank account to another, without needing to keep a balance in the app. This makes the funds arrive in a matter of minutes, with no fees and no middle steps.
How much can you transfer now?
Depending on the bank linked to your account, the sending limit may vary. In the case of Bank of America and Wells Fargo, daily limits are set at $3,500 and monthly limits at $20,000. So those who rely on this platform to receive larger amounts of money monthly will need to look for an alternative.
But they’re not the only ones offering limits, BMO Harris limits instant transfers to $750 and $1,000 if instant, with a $5,000 monthly cap.
Capital One sets the limit at $3,000, Chase applies limits based on account type, with daily limits ranging from $500 to $10,000. Citibank states users can send up to $2,500 daily and $15,000 monthly.
Discover, for example, allows $600 daily and First Bank between $1,000 daily and $3,500 monthly. As for Truist, their users can send up to $2,000 per day and $10,000 per month, same as those who operate with USAA Federal Savings Bank, which manages similar figures. So, all banks are placing limits on this type of account-to-account transfer.
Can the limits be increased?
Yes, but with some restrictions. Some institutions allow you to increase your transfer caps if the user demonstrates a trustworthy history, especially when sending money to frequent contacts. But this possibility is not automatic, you’ll need to contact your bank directly and make sure you meet certain criteria, such as account age or number of past transactions.
Likewise, Zelle itself can reduce or additionally restrict limits depending on the user’s balance and payment history.
Is Zelle a safe platform?
Zelle is a safe platform because there’s no need to share banking data, everything is done through linked phone numbers. But, as always, safety depends on responsible use. That’s why the recommendations remain the same: enable authentication features, check your activity regularly, and above all, only send money to people you know and trust!!