Last Updated on December, 2024
“Zelle? Cash App? Oh God! Someone please explain to me the differences.”
Is this what your mind voice says? Well then, I’ll help you.
Zelle is a simple app that lets you send, receive, and request money. The funds instantly go to your bank account, and there are no fees.
Cash App does the same. But, it has additional features like a balance, a debit card, and an investing platform (suitable for beginners).
However, I know you want me to discuss these apps (financial institutions) more.
Don’t worry! I’ll cover a lot more in detail.
Quick Summary
When comparing Cash App and Zelle, it’s worth noting that Cash App has a higher Trustpilot score and offers international transfers to the UK, while Zelle is limited to domestic transfers in the US. However, both have faced criticism for their security and customer service. Therefore, it’s important to carefully consider factors such as sending limits, international payment options, investing opportunities, customer reviews, and transfer speed when choosing between the two apps. Ultimately, the best choice will depend on your individual needs and preferences.
Zelle and Cash App are both digital payment apps for sending and receiving money, with Zelle focused on bank-to-bank transfers and Cash App offering additional features like a balance, debit card, and investing platform.
Both apps have their own set of pros and cons, with Zelle having no fees and faster transfer times, but lacking fraud protection and limited to US bank accounts only.
Contents
- Zelle Vs Cash App (Overview)
- Which is Best – Zelle or Cash App?
- Cash App vs Zelle: Send and Receive Money
- Cash App vs Zelle: Limits
- Cash App vs Zelle: Other Considerations
- Which is Best for Business – Cash App or Zelle?
- Cash App vs Zelle: Location and Currencies (With Alternatives)
- Zelle vs Cash App: Customer Reviews
- Zelle vs Cash App: Pros and Cons
- Conclusion
- FAQs
Zelle Vs Cash App (Overview)
The following table will give you an overview of both Zelle and Cash App (so that you can skip taking notes this time).
| Feature | Zelle | Cash App |
| Sending money | Can send money within the US | Cash App users can send money within the US and to the UK |
| Receiving money | Money goes directly into your bank account | Money goes into your Cash App balance |
| Safety | Money is never held in a third party location | No guarantee of refunds if your money is sent to the wrong person or if you get scammed |
| Fees | No fees | Fees involved for ATM withdrawals and instant bank transfers |
| Card | No Cash Card given | You have the option to get a free customized ‘Cash Card’ |
| Limits | Sending limits determined by your bank However, sending limits are capped at $500 per week for non-Zelle supported banks | Different limits for verified and unverified Cash App account(s) |
| Investing | No investing platform | There’s an investing platform |
| Learn More | About Zelle | About Cash App |
Got an idea? Well, there is more that you need to know.
Keep reading.
Which is Best – Zelle or Cash App?
When it comes to comparison, we always want to know which is the best, isn’t it? Well, I’ll share their services and features and will give you the chance to decide which is BEST.
Deal? Okay, continue reading.
Downloading and Compatibility
To use Cash App and Zelle, you can download them on iOS from the App Store, or Android version from Google Play, or use them through a web browser. (I hope you already know this).
Similarities
GUESS WHAT? Both Cash App and Zelle permit you to send and receive money instantly without any hidden charges. Plus, they are free to download, and there are no monthly membership charges.
Key Differences
This point is important. Listen, Zelle is primarily for bank-to-bank transfers to pay friends and family, while Cash App is a popular peer-to-peer payment service that lets you hold actual account balances and provides various financial tools. Plus, Zelle does not have FDIC-insured bank accounts.
Sending Money
Zelle users can send money using the recipient’s email or phone number. If the recipient is not registered, they receive a notification, and if not registered within 14 days, the money is refunded to them.
Meanwhile, other Cash App users send money through $Cashtag, email, or phone number. Transfers expire if not accepted within 14 days. You can also top up your bank account number with bank transfers, cards, or cash at stores.
Cash Cards
Do you know? Cash App provides a Visa debit card linked to your Cash App balance, offering discounts at select brands. Zelle, being a money transfer app, offers a Visa or MasterCard debit card too.
International Payments
Cash App supports free international money transfers between US and UK users with no fees and real mid-market exchange rates. However, Zelle does not support international transfers.
Investing
Cash App offers commission-free stock trading and Bitcoin trading with associated fees (1.5% to 2.3% per purchase).
CAUTION: Investing and cryptocurrency both involve the risk of losing your money. But, Zelle does not provide an investment platform.
Filing Taxes
Cash App processes personal tax fillings and refunds for free. It provides a Composite Form 1099 for stock transactions. Businesses using Cash App to get paid will be sent Form 1099-K. Zelle doesn’t issue tax forms. Users are responsible for reporting taxable activity to the International Revenue Service (IRS).
Cash App vs Zelle: Send and Receive Money
Cash App and Zelle both let you easily send and receive money. The steps to send money on either app are quite similar. You just need your recipient’s phone number, email, or $Cashtag (if using Cash App).
Enter the amount, confirm the transaction, and you’re done! For first time users, you’ll manually accept your first payment. After that, payments will go straight to your linked bank account with Zelle or your Cash App.
Cash App also lets you store funds on it and withdraw from ATMs using your Cash Card. One key difference is that Zelle only works within the US, as your recipient needs one bank account based in the US. Meanwhile, Cash App allows you to send money not only within the US but also to friends in the UK.
Cash App vs Zelle: Limits
Remember this! Cash App and Zelle both have limits on how much money you can send to someone. For Zelle, the limit depends on whether your bank supports it. If your bank supports Zelle, then your sending limit is determined by your bank’s limit.
However, if your bank doesn’t support Zelle, then you’re restricted by Zelle’s weekly limit, which allows you to send a maximum of $500.
The following are examples of daily and monthly sending limits for some banks using Zelle:
For Cash App, the limits for sending and receiving money depend on whether your account is verified. If your account is not verified, you can send or receive up to $1,000 per 30 days. However, to send or receive more than this, you’ll need to verify your account. Understood?
Cash App vs Zelle: Other Considerations
Card
Cash App is a versatile service that goes beyond just online transactions. Unlike Zelle, which is strictly online, Cash App provides a Visa debit card known as the ‘Cash Card’.
This card can be used at ATMs for cash withdrawals and for making purchases both in store and online, wherever Visa debit cards are accepted. The Cash Card is not only practical but also fun – you can customize it with your signature, emojis, and choose your preferred color.
If you’re looking for a service that offers these features, Cash App can be the right choice for you.
Safety
Safety is important. To stay safe when using Cash App or Zelle, make sure you know and trust the person you’re sending money to. Always double check that you’ve entered their details correctly to stop sending money to the wrong account.
Remember, the speed of the transaction doesn’t matter if it goes to the wrong person. It’s important to be cautious because neither Cash App nor Zelle guarantees refunds if something goes wrong. Although you can request a refund, getting one depends on whether the recipient is willing to return the money.
However, if you fall victim to a scam, there’s a chance you won’t get your money back. Despite these risks, both Cash App and Zelle are safe to use as long as you follow these precautions.
Investing
Zelle is an easy peer-to-peer transfer service that allows you to send and receive money. But Cash App is more than just a simple money transfer service like Zelle. One notable aspect of the Cash App is that it allows you to invest in stocks easily, making it great for beginners.
You can sell stocks quickly, and the app guides you through the process. The app also allows ‘fractional share investing,’ meaning you can buy a part of a stock for as little as $1. This is good because it lets you start investing without needing a lot of money.
However, for experienced investors, Cash App might be a bit too basic. It has limitations on the types of accounts you can open and the kinds of investments you can make. So, while it’s great for beginners, it may not offer enough OPTIONS for those who are more experienced in investing.
Transfer Speed
Zelle allows free instant transfers if you’re registered. Cash App takes 2 to 3 days for standard transfers to a bank account. Plus, Cash App offers instant transfers to a debit card but charges a rush fee ranging from 0.5% to 1.75%, with a minimum fee of $0.25.
In comparison, Zelle is good for local money transfers since it’s both instant and free, while Cash App charges a fee for instant direct deposits.
Which is Best for Business – Cash App or Zelle?
GUESS WHAT? Zelle and Cash App are both good choices for small businesses in the US, and Cash App is also available in the UK.
Zelle allows you to receive any amount without a fee, and it’s easy if you use the same bank. Cash App, on the other hand, charges a 2.75% fee for every payment, but it offers more ways to get paid and allows transfers between the US and the UK.
If you’re dealing with larger bank transfers, Zelle might be more convenient since it’s integrated into major US banks’ mobile apps.
Cash App vs Zelle: Location and Currencies (With Alternatives)
As I already told you, Zelle is for transferring money in the US using dollars. Cash App is for transferring money in the US and UK. Cash App lets you transfer in dollars and pounds locally, and you can also do international transfers between dollars and pounds. Got it?
In comparison, Zelle is only for local transfers within the US. Therefore, Cash App is better if you need both local and international transfer options. However, if you’re in the US and want an online banking option with international transfers, consider Revolut.
For money transfers from the US, UK, and more countries, Wise is a good choice, offering affordable transfers to 70+ countries in 40+ currencies.
Wise also provides a multi-currency account that is useful for travelers and business users. Plus, for affordable international cash transfers, you can try WorldRemit or Remitly.
Zelle vs Cash App: Customer Reviews
I think this is the most important part, and I should make sure I’m not missing any point. So, I’ll tell you what I understood through my analysis.
TRUST ME. Cash App and Zelle have high ratings on the App Store and Google Play Store, but on Trustpilot, a platform for reviews, they get mostly negative feedback, including their data encryption.
Zelle, backed by US banks, has a low Trustpilot score of 1.1/5 with over 600 reviews. Most users faced issues with scams and poor customer service.
Instant transfers can’t be canceled, causing problems for those scammed or entering the wrong details. Users have complained about their customer service support when they needed help, leading to frustration and negative experiences.
Cash App, with a 1.2/5 Trustpilot rating from over 3,700 reviews, also received criticism. While some users liked its simplicity, many faced security issues and poor customer service.
Unauthorized transactions and account flagging were also reported, with some issues not being resolved. Cash App’s customer service, only available through a chatbot, was considered insufficient for addressing problems quickly.
Both apps have positive features, but the Trustpilot reviews mainly highlight issues, suggesting that those with negative experiences are mostly to share their feedback on this platform. I picked some customer reviews of Zelle and Cash App randomly to help you understand better.
- Customer Review 01:
Don’t uses Zelle. Their customer service sucks. They actively facilitate criminals. Unless it’s your mother, and your mother isn’t a crook, don’t wire money to anyone through zelle.
Cashapp has the Worst payment service! They took away my card services and would not tell me why but expext me to continue using cashapp. That is Not acceptable.
- Customer Review 02:
I signed up for Zelle. Sent a request. The person received the request for payment,
and “paid”. Nothing hit my account. It sat there pending forever, despite the fact we
both had “zelle”. Gave up and canceled the request. Guy had to pay me with an old
fashioner check
There is a new scam structure on cash app. The scammer asks you to send money to a third party and send the scammer a screen shot. So if you file a complaint, the scammer did not have any financial transactions and the third party had no interaction with you. The result is you will never get a refund.
- Customer Review 03:
I will give 0 star if I could, I have been use zellepay to receive the money over 2 years, It has no problem until
3 month ago, I fount I did not received some money front sender, I called the zelle, They said they don’t have any information provide to me. only say NO. they are very bad attitude and don’t want to help at all. They don’t care if you are their customer. Stay away this company!!!!!
Can’t use CashApp if you have an APO address linked to your bank account (military living overseas). When I directly link my bank account and try to send money it automatically tells me I’m “over my sending limit” even though I haven’t sent a single dollar. Absolutely worst app to transfer money with! Use Venmo or PayPal instead!
Zelle vs Cash App: Pros and Cons
Cash App Pros and Cons
Pros
Cons
Zelle Pros and Cons
Pros
Cons
Conclusion
Yes. Zelle and Cash App are similar in some ways, like having limited coverage, low fees, and being accessible only through mobile devices.
However, there are important differences as I discussed above. Zelle is for domestic bank transfer(s), while Cash App allows international deposits via bank transfer or debit card.
Zelle is only for the US, but Cash App works in the UK too. Plus, Cash App also offers extra services like a free debit card and the option to buy Bitcoin or stocks, while Zelle is limited to US bank to bank transfers with no plans to expand.
If you want flexibility for international transfers, Cash App is better. Or, if you’re looking for alternatives, I suggest you go for Wise – my favorite option!
FAQs
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