Many Royal Credit Union Members have questions about third-party payment apps like Zelle and Venmo. In this article, we’ll provide answers. Get ready to learn about these alternative ways to move money!
What Are Person-To-Person Payments?
Before we talk about Venmo and Zelle, let’s look at how we can group apps like this together. They are often known as “person-to-person” apps because they let people send money to others. There are dozens of person-to-person apps that work in a similar way. Zelle and Venmo are two of the most popular apps in this group.
How Do Venmo And Zelle Work?
Venmo and Zelle let you send funds to other people using just their name, phone number, or other unique identifier like a handle or @. They are easy-to-use services that make sending money as easy as sending a text message.
To send money, the sender tells Venmo or Zelle their bank account information so funds can be taken out of their account. Bank account information is also used to deposit money into the receiver’s account.
What Are The Advantages Of Zelle And Venmo?
The sender does not need to know the recipient’s bank account information or address. This can mean using Venmo or Zelle is easier than making an electronic transfer or sending a check.
For most person-to-person apps, the transfer of funds happens in real time. Funds are removed from the sending account and deposited into the receiving account in seconds. This eliminates waiting for a mailed check or electronic funds transfer.
What Are The Disadvantages Of Zelle And Venmo?
Any third-party connection to your bank account can be a risk. Apps like Venmo and Zelle that transfer funds come with extra risks because they could be used to move money out of your bank account.
While fast, easy transfers are an advantage, they can also be a disadvantage. If a hacker gets access to your Zelle or Venmo account, it takes just seconds to send your money to someone else’s account. The rules for disputing transactions and getting your money back if something bad happens are also different than at a traditional financial institution.
Does Royal Credit Union Support Venmo And Zelle?
Royal Credit Union checking accounts can be used to send or receive funds using many person-to-person apps, including Zelle and Venmo. Because of the potential security risks, Royal has not integrated these services into our online banking and mobile app for Members. Members can use the Venmo or Zelle setup process to manage how these apps access their Royal accounts.
How Can I Use Zelle And Venmo Safely?
One simple way to offset the risk of using Zelle and Venmo is to use a unique username and password that is different from your other usernames and passwords. (You should never use your online banking username and password for anything else, but this is especially true for online payment services!)
You can also use multi-factor authentication with these services, and this option is usually turned on by default. Similar to Royal Credit Union’s online banking system, this extra security measure confirms your identity with a text message code or other method besides just a username and password.
Does Royal Credit Union Offer An Alternative To Zelle And Venmo?
Royal’s external transfers feature in online banking or our mobile app allows Members to send funds to other people quickly and easily. You only need to know the recipient’s name and phone number or email to send money. We are working to enhance this feature so that funds can be sent and received faster, too.
Because external transfers is a Royal Credit Union service, there isn’t anything extra to sign up for. It also means we’re here to help answer your questions and address any issues. Using Royal’s built-in person-to-person transfer feature also avoids the security risk of connecting your bank account to a third-party service. And best of all, there is no charge to Members or recipients for using external transfers.
We hope this article has answered your questions about Venmo and Zelle. We also hope you learned a little about Royal’s external transfers feature.
Venmo is a registered trademark of PayPal, Inc. and is not affiliated or connected with Royal Credit Union.
Zelle is a registered trademark of Early Warning Services, LLC and is not affiliated or connected with Royal Credit Union.