Today, bank transactions can be made from the comfort of our homes. With online banking and several bank apps, making payments, shopping, or transferring money has never been easier. From splitting dinner to sending money to a friend or business, apps like Zelle, Venmo, and Cash App have revolutionized the way consumers move money, allowing transfers in seconds without having to write a check or handle cash. Many people usually have the same concern about whether their bank uses Zelle and similar apps or not. This is a common question for members of Santander Bank, and today we’ll finally unravel the answer.
Financial inclusion is on the rise globally, as stated in the 2017 Global Findex of the World Bank. According to a report, between 2014 and 2017, the share of adults who have an account with a financial institution or mobile money service rose globally from 62 percent to 69 percent. In developing economies, the percentage rose from 54 percent to 63 percent.
Technology development has changed the way we interact with payment and banking systems. The speed, along with the number of transactions that are made nowadays, is fantastic. According to the 2019 Federal Reserve Payments Study, credit cards can settle 5,000 transactions per second.
In this respect, digital payments networks have become extremely practical, such as Zelle. Zelle is a digital payment network that offers a transferring service for individuals registered in a bank account within the U.S.
What is Zelle, and how does it work? Does Santander use Zelle?
To make sure people use Zelle safely, let’s begin by explaining what Zelle is.
Zelle is a mobile payment application that simplifies payment processes and money transfers between peers (P2P). It facilitates moving money without visiting the bank or even handling cash.
The app can be downloaded to every smartphone, and it is available for both Android and iOS. Besides, the Zelle service is also integrated within many mobile banking applications, such as Bank of America, Citi, Wells Fargo, and many others, making it easier to start using Zelle right away. Even if a bank hasn’t joined Zelle yet, people can still send and receive money using the Zelle app.
Zelle was founded in 2016 in Scottsdale, Arizona, by clearXchange, and then it was sold to Early Warning Services, the current owner.
Nowadays, over a hundred banks and credit unions use Zelle. In fact, according to consumer research made by Zelle, more than 80% of consumers either use or plan to use P2P services offered by Zelle to send money to eligible small businesses. In addition, corporations are also turning to Zelle to meet consumer demands.
How does Zelle work?
Using Zelle is pretty easy and quick. Even if you have never used it, you’ll find it is amicable to manipulate.
Zelle offers a service to send, receive, and even request money. To do so, people first link their checking account to their Zelle account.
To send money with Zelle, users first need to type the recipient’s email address or their mobile phone number. Unlike other payment and transfer apps, in Zelle, money is available to enrolled recipients almost immediately. It takes just a few minutes.
How much money can I send to Zelle?
There is a lot of confusion regarding the amounts you can send with Zelle. So, let’s get to the bottom of this confusion.
- Every 24 hours, you can make ten transfers totaling less than $2,500.
- Every month, you can make 30 transfers totaling less than $20,000.
For small businesses:
- There’s a limit of $25,000 every 24 hours with a maximum of 10 transfers.
- And $100,000 each month with a maximum of 30 transfers.
If your bank is not a Zelle ally, the limit is $500 per week. If your bank offers Zelle, you can transfer more significant amounts. However, when it comes to receiving funds through Zelle, there are no limitations of any kind.
How much do I have to pay to send money?
Unlike other P2P transfer services, like Venmo or Cashapp, which charge fees when users send money using a credit card, Zelle does not charge a fee for transfers made on its platform. Charges in these other apps can range from 1.5% to 3%, making transfers quite costly.
How do I send money with Zelle using my bank application?
As aforementioned, Zelle is integrated into several banks’ applications. Therefore, to make a transfer, you need to follow these two easy steps:
- Register your email address or phone number into your bank’s current online system so it will be linked to your bank account.
- Submit the payment: choose the amount you need to transfer and the recipient who will receive the money. Next, choose the account where funds will be deducted. Make sure to check all the information is correct. Then make the payment.
The recipient will receive an email or text message from Zelle to notify them they have received a payment. In this same message, Zelle gives the person instructions on how to receive the money sent. Take into consideration that if the recipient is not registered with Zelle, they will be prompted to create an account.
Zelle deposits the money into the recipient’s bank account immediately. Another perk from Zelle is that it also offers the option to request money from friends or family.
How can I receive money through Zelle?
When another person who also is a Zelle user sends you money, you will receive a notification by email or text message. This is why it is crucial to register your email or phone number to your Zelle account.
There are two ways to receive the money: your bank’s website or mobile app and Zelle mobile app.
- Through your bank’s website or mobile app
To receive money through your bank’s website or mobile app, you need to follow these easy steps:
- Log into your bank account and click on the Zelle/person-to-person (P2P) section.
- Make sure your email and phone number are set into your account.
- Give the sender the same email or phone number associated with your account.
Some banks offer the option to initiate a payment request using your email address or phone number.
- Through Zelle mobile app
To receive money using the Zelle mobile app, you should follow these steps:
- Download the app.
- Enter your phone number to receive a verification code. You can also link your account to your email address.
- Enter your debit card details. Then, make sure the information is correct.
- Give the sender the same phone number or email address associated with your account,
By using the Zelle app, you can also make a money request.
Advantages and disadvantages
Advantages of Zelle
- It is backed by more than a hundred banks and credit unions. Because it is integrated into your bank’s application, you don’t need to download another one. Santander Bank is one of the many on the list.
- It offers instant transfers. Transactions are processed in seconds.
- It does not charge to send money or make any other transfer. Using Zelle is free.
Disadvantages of Zelle
- It is necessary to have a bank account with Zelle compatible banks. This is because the fastest transfers are made between banks supported by the app. Otherwise, you must use the third-party Zelle app and wait up to three days.
- Zelle is available as a standalone P2P application that works much like Venmo. But unlike this one, to send money with Zelle, you and the recipient must be members of one of the partner banks of this application.
Santander Bank and Zelle
Fortunately, Santander Bank offers Zelle. It is integrated into the mobile app as well as in its online banking website.
To get started, you need to log into your Santander bank account and select the Zelle section. Then, register your email or U.S. phone number. Next, you will receive a one-time verification code, enter it, and accept terms and conditions.
Money sent by using Zelle and Santander bank is available into your recipient’s account within minutes.
Santander Bank also offers the option of requesting money using Zelle. To do so, you need to choose “Request”. Then select the person you are requesting the money from, enter the amount, and click “Request”. Make sure to double-check all the information.
The Bottom Line: Does Santander use Zelle, and is it a Good Option
In conclusion, Zelle is a way safer option for moving money quickly. It is safer than handling cash or mailing bills and checks, no doubt. Perhaps one of the downsides is that your funds are never really in a third-party location, making it insured.
But, as long as you make sure you are sending funds to the correct recipient and to a person you trust, there shouldn’t be a problem. In fact, Santander Bank uses the same key encryption of its app when using Zelle, so users are secure.
Money moves so fast nowadays. If the person you are sending money to has a Zelle account, the transfer will be complete in minutes and, therefore, cannot be canceled once it is made. This means you will want to verify your transfers to make sure you don’t make mistakes and send the funds to the wrong person.
This is why Zelle is an excellent free option if you need to transfer money quickly because it works almost instantly. Unlike other P2P transfer apps, it also doesn’t charge fees and quickly moves money between banks, making it one of the best options for immediate transfers. However, although it can be a quick and easy option, users must remember to use it responsibly, confirming that they are sending funds to people they know and trust.
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