10 Reasons Why Zelle Is Better Than Venmo | Zelle, And Venmo Which Is Better And Why

Zelle and Venmo are two ways of sending and receiving money digitally. They both work almost similarly, with some key differences too.

Both these services allow users to send or receive domestic payments quickly, with just an email or phone number as a requirement. 

Note: these apps can only be used to transfer money within the U.S. Money can only be sent to a person with an eligible bank account in the U.S.

What is Zelle?

Zelle is a p2p transfer service that allows users to send and receive money in just moments. Zelle can be used to transfer money between banks in no time. Money gets withdrawn directly through your bank account and reaches the recipient’s bank account.

Most banks in the U.S provide Zelle. However, you can still use Zelle if you do not have a bank account in a participating bank. The limit, however, reduces to $500 a week.

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What is Venmo

Venmo is more like a digital wallet. Your money gets collected into Venmo linked from a U.S bank account, credit, debit, or prepaid card. You can then make money transfers to people using Venmo. Many Venmo transfers are free. However, some of the transactions come with minimal fees.

Let us see what some of the key differences between Zelle and Venmo are:

Transfer money digitallyYesYes
Send and accept peer-to-peer paymentsYesYes
A credit card could be used to make paymentsNoYes
Use to purchase thingsNoYes
Supports international paymentsNoNo
Transfers the money directly to bank accountsNoYes
Transaction feesDependsDepends
FDIC insuredYesNo
Secure data and activityyesyes

Zelle vs Venmo


Zelle to Zelle transfers instantly unless you are sending money on a non-business day or a bank holiday. In this case, your money will take at least 1-3 days to get transferred.

Transfers with Venmo usually take longer (up to 3 business days).

Transfers are usually free with Venmo unless you want to transfer instantly. In that case, it charges a 1% fee for the transaction. The only problem can be if you wish to transfer funds on a Friday, then the recipient may have to wait for at least four days as Monday is a bank holiday.


The best thing about using Zelle is that it is free of cost. As it is a free service designed by the banks that own Zelle, you don’t need to pay extra charges to transfer money between your friends and family.

However, you may want to check with your bank or credit union if any fee is charged on their end. Different banks have different policies and can charge a minimum price for the transaction. Therefore, you must reach out and find it from your financial institution.

Venmo transfers are free but take time for transactions. Although you want an instant service by the app, you need to pay a 1% fee.

Safety and Security

 The Venmo app uses encryption to keep your data safe and allows you to add a PIN too. Account monitoring and notifications also come with these services. Hence data is kept secure with Venmo.

On the other hand, it is owned by central banks; Zelle also has safety features like transaction authorization and monitoring for fraud. However, you cannot get a chargeback option on Zelle. Zelle does not take any responsibility for fraud or scams. You must be careful while using Zelle for making payments. It is better to send money to people you know and trust.

Unlike Venmo, Zelle can be used to transfer money to a small business account. It is recommended not to send money to random online businesses. It is safer to use it for sending funds to family, friends, or trusted people.

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Disadvantages of using Zelle and Venmo

Zelle is an excellent payment service for making domestic payments. Money can only get transferred in the U.S. 

With Zelle, you also cannot use a credit card to make payments. 

You do not get the option to cancel Zelle payments if you sent them to the wrong person unless the payment is still pending.

If you want to send money internationally, you cannot do it with Zelle. Zelle only allows money transfers within the U.S. 

It is one significant disadvantage of both Zelle and Venmo.

Disadvantages of using Venmo:

Like Zelle, Venmo also needs you to be physically present in the U.S to make payments. You cannot make any international transfers with Venmo.

You cannot cancel an already sent money with Venmo. If you sent money to the wrong person, all you could do is: request the amount back from them.

Money transfers with Venmo are not instant. It charges a 1% fee if you need instant transfers.

Money does not go to a user’s bank account directly. If you want to transfer the Venmo balance to your bank account, you will have to move it by transferring your Venmo balance to your linked account or eligible debit card.

Similarly, if you want to send more money than your Venmo balance holds, you have to add money to your wallet from your bank account.

Hence, this is a long and inconvenient process with Venmo.

Which is Better Zelle or Venmo?

Both Zelle and Venmo are widely used nowadays for money transfer purposes. These are both trustworthy services with only minor differences. Both these app makes it easier for you to send and receive money. We hope you read the whole guide and got comprehensive information about Zelle and Venmo. Now you can easily decide for yourself which one is better and which one to opt for.

Henceforth it’s totally upon you to whether opt for either of these apps.

In Conclusion: Zelle And Venmo Which Is Better and why

Zelle and Venmo are two great money apps that have different strengths and weaknesses. Zelle is a mobile app that enables customers to transfer money through text messaging, while Venmo is a free app that enables friends and family to send each other money instantly.

If you’re like most people, you use Zelle to send money between your bank accounts. If you use Venmo, it’s usually to send money between friends and family.

If you want to avoid getting charged fees when transferring money, then Zelle is the better option. But if you don’t mind paying a fee every time you make a transaction, then Venmo might be a better choice for you.