Zelle is one of the most used apps to send and receive money between friends. With the prevalence of online payments and many establishments refusing to split checks it has become more and more common to take care of these small transactions amongst the people participating in the activity. But this new digital banking tool comes with its own set of complications and troubles, especially since they are linked to other major banking entities like Bank of America, and these institutions need to be extremely vigilant when it comes to digital transfers of money, as they could constitute money laundering and they are subject to much stricter financial regulations.
While the symbiotic relationship between Zelle and Bank of America (and many other banks, but we are focusing on this one) has been good for years, tightening financial regulations and more controls from the Federal Government have meant that the bank has needed to revise their policies to ensure that no fraud is committed in the millions of daily Zelle transactions. That is why, as part of the update to their Service Agreement, Bank of America has decided to implement some new limits and regulations to Zelle transactions starting July 21, 2025.
The new regulations that Bank of America is putting on Zelle use and the impact on its customers.
For starters and perhaps the most important change that is occurring is that Bank of America is introducing a new daily limit for Zelle transfers. Now, this limit will not be the same for everyone, as every customer has a different relationship with the bank and thus their own limits for credits, payments and other transactions, but the bank has to start somewhere to ensure that the money that is exchanged is legitimate and that all transactions are above board. As customers gain the bank’s trust, the limits will be increased.
For the first 60 days, individuals using personal accounts will be limited to sending $500 per day, while small businesses can transfer up to $2,000 daily. These limits will later rise gradually to the standard threshold, $3,500 for personal users and $15,000 for business accounts. While this will be an adjustment, especially for business accounts, we need to remember that the limit resets daily, so while it might be inconvenient for a little while, it will soon go up and most businesses will be able to temporarily weather the lower amount.
New recipients also come with temporary caps: within the first five days of being added, personal accounts can receive no more than $1,000, and business accounts up to $4,000. Bank of America also informs users that these limits are subject to change at any time based on security considerations.
The updated Service Agreement also introduces other changes related to how payments in Zelle will work from July onwards. Transfers initiated after the daily cut-off may now take up to two business days to process and the new terms now ban the use of the platform for unlawful transactions or payments related to taxes, penalties, or gambling obligations. Another significant update is once a payment is sent immediately, it can no longer be canceled or changed, but scheduled transfers remain editable until the day prior to processing.
For now, Zelle will continue to be available to Bank of America users for free, but by continuing to do so, they will automatically be accepting the new terms of service that have been implemented and there will be no exceptions made. The aim really is to enhance security, but that unfortunately also comes with tighter restrictions on timing and transaction flexibility, which will inconvenience many users but is necessary to ensure that regulations are being followed and that no user is trying to skirt the law.