Can I send money with Zelle in Australia?

At some point in your life, you’ve likely needed to transfer money at a moment’s notice for a round of drinks or a sudden medical emergency. You know what comes next: your bank app tells you it needs a day or two for the funds to clear into your bank account.

The new P2P payment platform Zelle is in a class of its own. It can transfer $1 or more into your recipient’s bank account – typically in minutes. Backed by many of the major US banks, Zelle could be your solution for nearly instantaneous transfers with no fees for you or your recipient. But if you're in Australia, you might be out of luck.

What is Zelle?

Formerly called ClearXchange, Zelle is a new payment processing network developed with some of the largest American banks, including Bank of America, Chase, Capital One and USAA among them. Zelle prides itself on easily completing transfers instantly to other users. If your recipient isn’t a Zelle user and you're both in the US, you can send money using their email or phone number. Zelle will prompt them to visit their bank's app or download the Zelle app to receive their money.

Given the imagery on its site (avocado toast, anyone?), Zelle is obviously skewed towards the millennial crowd. Zelle is integrated into its partners’ websites and mobile banking apps, so you won’t need to download another one to use it – or encounter your money getting held up in a third-party account along the way.

How much can I send with Zelle?

This is where things get tricky: There's a lot of confusion (a possible Zelle theme) as to how much you can send with Zelle. In prior press releases, it listed up to 10 transfers totalling less than $2,500 every 24 hours and 30 transfers totalling less than $20,000 every month. For small business owners, those limits rose to $25,000 every 24 hours over a maximum of 10 transfers and $100,000 every month over 30 transfers.

Today, Zelle's site includes a vague note about contacting your bank or credit union to learn about their limits through the service. Otherwise, "your weekly limit is based off usage and experience with the service." Not sure where that leaves those of us who don't have experience with Zelle.

We've received so many of your updates about banks limiting your transfers to far, far less than any stated maximums, it sounds like there's a lot more tweaking going on as Zelle rolls out.

Details

How much will I pay to send money with Zelle?

Similar to Venmo, you won’t pay a fee to send money through Zelle. However, when using the app on your smart device, you could pay fees associated with your carrier’s message and data rates.

What types of transfers does Zelle support?

Zelle supports transfers between bank accounts only – in US dollars and within the States. You’ll also need a debit card backed by Visa or Mastercard.

How do I send money through Zelle?

Zelle is available as a standalone P2P app that works a lot like Venmo. But unlike Venmo, to send money with Zelle, you and your recipient must be members of one of the Zelle partner banks.

Zelle also lives in your current bank’s app, offering a way to transfer money in four easy steps:
1. Set up your account. Log in to your current bank’s online system and register your email address or phone number to establish a connection with your bank account.
2. Send your payment. Choose your recipient, the amount you’re transferring and your funding account. Review your information and send.
3. Zelle notifies your recipient. Your recipient receives an email or text with instructions on how to receive the transfer. If your recipient is not registered with Zelle, they’ll be prompted with a one-time set-up.
4. Zelle deposits your money. Your transfer is deposited into your recipient’s bank account, typically in minutes.

You can also request money from friends or family, just like with Venmo.

How do I receive money with Zelle?

When another Zelle user sends you money, you’re notified at the email address or phone number that your sender used. If this email or number isn’t registered, simply register it to receive your funds.

What to look out for

Zelle is currently limited to bank transfers in US dollars within the United States. Like other payment processing services, it imposes some restrictions on the size and frequency of the transfers you can make.

Zelle won’t be as helpful if your bank doesn’t yet work with it. If your friends or family use these remaining holdout banks, you’ll need to manually enter their banking information or use Zelle's standalone app. Transfers to banks outside of Zelle's network can take one to three days, rather than a few minutes.

We're also hearing firsthand accounts about low maximums that aren't always advertised and other blips that could be a result of a quick rollout – or worse. We'll continue to update our review as we hear more.

Benefits and drawbacks

How safe is Zelle?

Because Zelle's integrated into your existing bank’s website or app, if you’re satisfied with your current bank’s security and encryption, that same protection is extended to cover Zelle transactions. Zelle's standalone app is backed by Early Warning Systems, a risk-management company that uses mobile identity authentication and advanced monitoring to ensure that your money is secure.

What does the Internet say about this brand?

Zelle's still fairly new, but you'll find customers who say they've seen unauthorised withdrawals from their accounts with Zelle. The service is backed by Early Warning Systems, which claims that it doesn't have visibility into its consumer accounts. For that, it says customers need to return to their own banks to handle any questions about transactions. Still, many users report that their banks themselves aren't sure how to handle potential fraud.

As for the media, in June 2017, Bloomberg Technology called Zelle the “Venmo killer,” announcing Capital One as the first banks to offer Zelle within its own app. There’s no question that Zelle is gunning straight for Venmo – prompting Venmo to add instant bank transfers to its own app in 2017.

Bottom line

Zelle's taking off with transfers among users who expect funds within minutes. But not without snags that include hung-up transfers and customer reps who appear unwilling to untangle the problem.

While you won't be able to use Zelle in Australia, check out some other alternatives for domestic transfers and international ones.

Frequently asked questions about Zelle

• Does Zelle support scheduled payments?

  No, Zelle does not currently support scheduled payments.

• If my bank participates with Zelle, how do I sign up?

  Simply enrol or register through your participating bank’s website or mobile app.

• Does Zelle work with foreign currencies?

  No. For now, Zelle supports transfers in the United States in US dollars only.

• What happened to ClearXchange?

  In July 2017, ClearXchange became Zelle. If you were a member of ClearXchange, you’ll have been invited to enrol and can now send money using Zelle's app.

• Does Zelle offer cash advances?

  No. Zelle does not currently work with credit cards, so cash advances are not possible.