Zelle vs Wire Transfer: Which is Safe and Best?

There are ample ways to send money from a bank account electronically. They are more convenient, easy and not so expensive than the traditional ones. When it comes to Zelle vs Wire transfer, choosing the best is more important. Here, we have briefly covered the difference between Zelle and Wire transfer and which is better. 

Zelle vs Wire Transfer: Which is best?

When you want to send your money easily, quickly and securely from your bank account to other bank accounts, you use  Zelle as a payment network. It takes only a few minutes to send and receive money without any cost. If you look at the popularity behind Zelle, over $490 billion were sent in 2021, contributing to 1.8 billion transactions.

On the other hand, a wire transfer means a transaction started through a bank where the fund moves from one account to another at an external bank. When both banks are in the same country, it is called a domestic wire transfer, and when one bank is outside the country, it is called an International wire transfer. Wire transfer is mostly used to send large amounts more quickly.

Is wire transfer more safe than Zelle? 

When it comes to safety, Zelle is considered a safe, secure way to send money. Here, you don't need to share your sensitive information. Though Zelle is fast, convenient, and free, it doesn't provide the same payment protection that we require or that we expect from credit cards and debit cards. It means it doesn't protect consumers from fraudulent charges. As Zelle lacks protection from fraudulent charges, people only pay their trusted individuals like friends, family or some small business owners. As the risk has increased while using Zelle,  it is advisable not to use it for online sellers and send large amounts of money to people you don't know. You also need to have the correct mobile number or email address while making a payment through Zelle.

Wire transfer is considered an extremely safe way to transfer money, which is the same as putting a check in the mail. Wire transfer transactions are initiated by an authorised person at your bank or non-bank via transfer service. Once initiated, they can't be cancelled, which means a person must be sure while sending the funds. In terms of safety,  Wire transfer holds an upper hand when compared to Zelle.

Is a wire transfer different from Zelle?

Wire transfer and Zelle are different as Zelle uses ACH transfer, where payment is completed through a clearing house, and it can be used to process direct payments and direct deposits. On the other side, wire transfer facilitates the direct movement of money from one bank to another and also charges a fee. Zelle transfers money free of cost or at a lower cost when compared to wire transfers, which generally charge $25 to $50.

Conclusion

Zelle and wire transfers are completely different modes of payment. The use of these modes of payment depends on your needs and the type of payment you make. However, it is important to understand that when financial matters are concerned, safety is the biggest priority, and this is where wire transfer wins when it is Zelle vs Wire transfer.

Also, Check: Zelle vs Venmo, Which is Best