If you are considering opening an account in Zelle without a bank account, you should know that technically it is impossible to operate this service without a bank. However, there are some alternatives that you can consider in this regard.
Why Zelle needs a bank
Zelle originally appeared on the market as a system for transferring money between accounts. That means that it is a service compatible not only with banks but also with bank accounts and digital banking.
In short, you can operate from your digital banking account by selecting the Zelle option and making transfers to the recipients you need.
However, the emergence of the Zelle mobile app has somewhat made it possible to modify this initial rigidity. This application aims to make transfers directly from cell phones, avoiding the obligation to connect to the web platform of your financial institution.
However, Zelle is not a self-balancing application. You cannot transfer the balance of cards or accounts to the application itself. That means that in all cases, it must be linked to a payment model: specifically, to cards associated with bank accounts.
Also, remember that the cards must necessarily be issued in the United States. The only exception would be to use Transferwise’s so-called borderless accounts. In this case, through the debit card, you could have a different model, although, as you can see, also linked to a product in which the money with which we operate is deposited.
How Zelle works
Knowing how this service works is the best way to understand all this.
It is a service that allows the association of a bank account to send and receive money. It is associated with a large number of U.S. financial institutions.
You will not be able to associate a foreign account, and you will not be able to operate if you do not have an associated bank account. Another thing is that you can manage if you do not have online banking. That is possible because the app allows you to perform the same functions as digital banking with Zelle.
Another important fact is that you will not be able to use credit cards. It is a common misconception that it is possible to use a credit card, but it is not possible.
Payments will always be made against or in favor of the balance in the case of income. And if you are thinking about the possibility of using a debit card, commercial debit cards cannot be used either.
In short, you should use the linked bank accounts or debit cards, as long as they are Visa or MasterCard (or compatible).
Another interesting aspect is that you value the sending limits. Not all banks provide the same maximum. You can find from the basic limitations of the service itself, around $500 per week, to higher limits such as that of Bank of America, which can reach up to $60,000 per month.
What do I do if I don’t have a bank account and I want to use Zelle?
You can’t do many things. Since this is a service directly related to banks and digital banking (despite being able to use the application), not having a bank account limits the possibility of accessing the service.
What you can do is look for alternatives. There are systems for sending money (and receiving it) in which it is not necessary to have an account—for example, having a card to make the deposits would be enough. Some of these applications are Venmo for mobile payments or PayPal in case you want to use a payment gateway.
Remember, we are talking about a service directly related to digital banking. Therefore, it is always, in all cases, necessary to have an associated bank account.
You will not be able to obtain any of the advantages offered by this service if you do not have such an account. Nor will you be able to do so if your cards are rejected. Remember also that credit cards are not accepted and that certain types of cards cannot be used in the service.