On March 31st, 2025, Zelle will make an important update to its terms and conditions. Existing Zelle users who do not have an active account at a participating financial institution will no longer be able to send or receive money through their service. As of January 8th, 2025, they have already removed the ability for new users to enroll in the Zelle app. This decision is a major shift in how Zelle operates, and it’s essential to understand what it means for your payments and how it could impact financial transactions moving forward.

What Does This Mean for You?

Zelle has become one of the most popular ways to send and receive money quickly. However, up until now, your bank account didn’t have to be linked to Zelle directly to work. Many people accessed the service through standalone apps or even linked debit cards. With this new change, Zelle will now require having an account with a participating financial institution to continue using their service.

What Are Your Options?

At AACGU, we offer Instant Pay in our Online and Mobile Banking. Like Zelle, Instant Pay is a simple and quick way to transfer funds between your AAGCU and external accounts. Facilitated through the Federal Reserve FedNow (R) Service, this tool is an even more secure and just as easy way to transfer funds in seconds.

Why does AAGCU not offer Zelle?

Unfortunately, Zelle has been a source of increased fraud in the industry. According to an article by MarketWatch, over $125 million is stolen annually from innocent consumers via Zelle. We strive to provide our members with excellent products and services, while still prioritizing security and keeping our members’ money safe. Instant Pay is a much more secure platform and provides the same easy-to-use, real-time funds transfer capabilities.

How to use Instant Pay

For your convenience, we have put together a handy how-to guide. View it here: Transfer-Tool-Instruction-Guide.pdf (aagcu.org)

Please note, only financial institutions that participate in the FedNow ® Service will be eligible for Instant Pay transactions. View the list of participating institutions here: fednow-live-participants.xlsx. If a financial institution does not participate, you can add them as a Payee and transfer through the Pay Bills tab.

Conclusion

Zelle’s updated terms may be an adjustment, but we are here to make the transition as smooth as possible. If you have questions or need help using Instant Pay, don’t hesitate to reach out.