I know this has been discussed here before. But I'd like to benefit of current perspectives.

I've used ACH to transfer money to my parents - seemed like a secure, easy and cost free way to send money. Siblings prefer that I use something like Zelle. I've never used it before and have been considerably apprehensive to date. Doesn't seem like a safe / secure method. Also seems fraught with scams and fraud. And not sure about phone number spoofing and if there is any risk there.

My first and primary concern is whether there is any risk to my funds being exposed to fraudulent withdrawals (money transfers I don't initiate, for example). As long as my funds are safe, then that's a huge worry lifted. BTW, I'm only intending that transfers with siblings will be only be outgoing; not expecting that I will ever receive any funds.

Second concern is whether or not the money gets to the intended recipient. Frauds, spoofing, whatever.

If I only use Zelle to send money to my sibling with a known telephone number, is it safe? My funds are safe and recipient will receive money as intended? Or are my funds exposed somehow?

I may be overly paranoid here. As might be usual. And either a bit ironic and/or completely expected given prior vocations. It is what it is though. Old dog, new tricks and such.

Should I just stick w/ ACH?

We like using Apple Cash. It's not for everyone. It requires Apple devices.

How do you initiate an ACH? Is this something your bank lets you do directly? Our bank was pushing Zelle and I’ve been happy with it for what I use it for, but would be more inclined to use ACH if I could.

Been using Zelle for years. Never a problem.

I just found that as an option as well. It sounds okay but I think it may have at least two limitations here:

1. weekly limit of $2000
2. need to transfer money from bank to Apple Cash first (which typically takes 3 biz days). Okay, unless funds needed more immediately.
3. requires iPhone and Cash setup on both ends. iPhone may not be a good assumption.

quote:

Originally posted by slosig:
How do you initiate an ACH? Is this something your bank lets you do directly? Our bank was pushing Zelle and I’ve been happy with it for what I use it for, but would be more inclined to use ACH if I could.

I just set it up on my bank side (this was a long time ago) - needed routing and account number for receiving bank account. Need a small test transfer first. Then was immediate (w/in the hour) and easy after that.

Banks are the ones who created Zelle to combat the fraud and money laundering that was occurring through PayPal, CashApp, etc.

I've been using it for years without a hiccup. In fact, just paid the lawn guy with it this morning.

quote:

Originally posted by 12131:
Been using Zelle for years. Never a problem.

Same here.


Zelle is just a streamlined method to send an ACH. It's bank to bank, without an intermediary third party like Apple/Paypal/Venmo/CashApp/etc.

If you're comfortable with going through your bank to send an ACH, you should be comfortable using Zelle. Same ACH system, just a different method of initiating it.

The only risks are if you input the wrong phone/email. Same as if you input the wrong account/routing numbers with an ACH. But Zelle will prompt you with the name of the person you're sending the money to, so even if you fat finger the phone number, you'll be able to recognize and fix it before completing the transfer.

Okay - sounds like I'm just old school and overly paranoid as usual. I'll give it shot and choke down my paranoia.

Thanks guys for the fast inputs and confidence. I still prefer the ACH route (not sure I see any benefits of using Zelle over ACH) but will try to be more accepting of "modern" generations.

I've been using Zelle for a few years now and never had any issues.

My wife regularly transfers money to my daughter, in SoCal, via Zelle, and does to me also when I run errands for her...mailing packages and such.

We use it between shooting buddies when we travel to matches. They prefer Venmo, but I try to stay away from PayPal items.

Just be sure you're sending it to the correct phone number. They'll know as soon as it hits their accounts and can let you know they got it

Okay - trying to set it up. It's asking if I want to use email or cell phone number to receive funds (again, don't plan to receive funds but need to set it up anyway it seems).

Is it better to use email address of cell phone number? I assume either could be changed in the future?

Will either be subject to more spam? Is one safer than the other?

quote:

Originally posted by konata88:
not sure I see any benefits of using Zelle over ACH

Here are two:

I can initiate a Zelle via my bank's app on my iPhone from anywhere in the world

I can initiate a Zelle via my bank's website on my laptop from anywhere in the world

I can't say that about an ACH through my bank. I have to drive to the bank, wait in line, make small talk, wait some more, drive home past Sonic without stopping for junk food, etc.

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Ego is the anesthesia that deadens the pain of stupidity

DISCLAIMER: These are the author's own personal views and do not represent the views of the author's employer.

Same-same. Just depends on which one you want to provide to someone else if you ever are receiving Zelle funds. You can even use both.

quote:

Originally posted by konata88:
(not sure I see any benefits of using Zelle over ACH)

Mostly speed of transfer and confirmation from the receiving party

Between my shooting buddies, after how much the split was, one will text "Sent" and the other will respond "Received" usually within moments

Zelle is certainly safe, as is Venmo and PayPal and probably Cashapp, as long as you know who you’re sending it to. If you get an email or text (or a phone call) saying they are in jail and need bail money, just make them wait until you can get there in person with cash.

OP, if you have already been sending money to your parents via ACH/EFT, and things have been moving swimmingly, then I see no reason to switch anything. Switching to Zelle offers nothing more than the speed of your parents receiving the money (instantaneous Zelle vs 1-3 days ACH).

One of the advantages of Zelle is that the other party doesn’t have your bank account number and routing number. With ACH, the sender requires those information. With total strangers, it’s crucial that they don’t know the numbers, but, among loving family members, who cares?

There are of course potential fraud/scam risks with Zelle, but if you use common sense, the risks should be zero.

Common Zelle scams and how to avoid them

Here’s one of my rules that I’m pretty sure most on here also live by. Never click on any link in any emails, even if it appears to come from your bank. Say, it tells you hey, you got money waiting, click here to receive. I would instead go logging on my bank’s website and find out.

Thanks guys. Appreciate the inputs. I set it up (after reading 100 pages of legalese - who really understands all that stuff?) and sent my first test amount. Seems it all works.

I'll read up on the scam info. Good tip about not clicking on any Zelle links in email. I generally don't anyway but good to have explicit reminder here to log into the bank account and see what's what.

My younger siblings seem more accepting of these new mousetraps than I am. Hugely uncomfortable still but as I'm only going to use it with a sibling, maybe it'll be safe.

Another happy user of Zelle here. I also regularly use Cash App with no problems as well.

JP

Is everyone in the U.S.?

Is it a regular thing?

If so, maybe open a joint account? (Schwab has great customer service, IME. Maybe Fidelity, etc)

Eg, you deposit “family money” into Bank X, from your paycheck/however you regularly deposit money.

From there, you transfer it to “sibling” account or “parent” account.

They get the money, instantly and any time - AFAIK, and you don’t have to worry about errors.

^^^ “Open a joint account”? You’re making things more complicated where none is needed.