You can send money within the United States through payment apps, bank transfers, wire transfers, money orders, or even cash. The best method depends on how much you’re sending, how fast it needs to arrive, and whether you want to pay a fee. Most everyday transfers between people are free using apps like Zelle, Venmo, or Cash App, while larger or more urgent transfers may call for a wire or ACH transfer through your bank.
Payment Apps for Sending to Friends and Family
Peer-to-peer payment apps are the fastest and cheapest way to send money to someone you know. The major options are Zelle, Venmo, Cash App, PayPal, and Apple Cash. All of them let you link a bank account and send money using just the recipient’s phone number or email address.
Zelle is built into most major U.S. bank apps, so you may already have access to it without downloading anything new. Transfers through Zelle typically arrive within minutes and cost nothing when funded from a bank account. Venmo and Cash App work similarly but are standalone apps. Both allow free transfers funded by a linked bank account or debit card, though they charge a fee (usually around 1.5% to 3%) if you use a credit card to send money. PayPal offers the same structure and also lets you send money through its website, not just the app.
Apple Cash is available to iPhone users through the Messages app or Wallet. It works well if both you and the recipient use Apple devices, but it’s less flexible than the other options for cross-platform transfers.
For most people splitting rent, paying a friend back for dinner, or sending a gift, these apps handle the job instantly at no cost. Each app has daily and weekly sending limits that vary based on your account verification level, so check your specific app’s settings if you need to send a large amount.
Bank Transfers Through ACH
ACH transfers (short for Automated Clearing House) move money electronically between bank accounts. This is what’s happening behind the scenes when you transfer money from your checking account at one bank to your savings account at another, or when you set up a direct payment to someone using their routing and account numbers.
Standard ACH transfers are usually free and arrive in one to two business days. Some banks offer same-day ACH processing for a small fee. You can initiate an ACH transfer through your bank’s website or app by entering the recipient’s bank routing number and account number.
ACH is a good fit when you’re moving money between your own accounts at different banks, paying a landlord or contractor who gives you their banking details, or setting up recurring payments. It’s not instant, so if speed matters more than cost, a payment app or wire transfer is a better choice.
Wire Transfers for Large or Urgent Payments
Wire transfers are the go-to method when you need to send a large sum quickly, such as a down payment on a home or a business transaction. Most domestic wires arrive the same business day, often within hours.
The tradeoff is cost. Among large U.S. banks, the average fee for sending a domestic wire transfer is about $26. The person receiving it may also pay an incoming wire fee, typically $10 to $20. If you initiate a wire late in the day or before a weekend, it may not arrive until the next business day.
To send a wire, you’ll need the recipient’s full name, their bank’s name and routing number, and their account number. Most banks let you initiate wires online, though some require you to visit a branch or call in for security verification, especially for first-time recipients or amounts above a certain threshold.
Money Orders for Paper Payments
Money orders work like prepaid checks. You buy one for a specific dollar amount, fill in the recipient’s name, and hand it over or mail it. They’re useful when the recipient doesn’t use payment apps, when you don’t have a bank account, or when a landlord or government office specifically requests one.
Money orders are capped at $1,000 each. If you need to send more, you’ll have to purchase multiple orders. You can buy them at several places, each with different fees:
- Post offices: The USPS charges $2.55 for money orders up to $500 and $3.60 for amounts between $500.01 and $1,000.
- Retail stores: Walmart charges no more than $1 per money order. Grocery stores, convenience stores, and other retailers also sell them, often for similarly low fees.
- Banks and credit unions: Fees are typically around $5 per money order.
Keep your receipt after purchasing a money order. It’s your proof of payment and the only way to track or cancel the order if it gets lost in the mail.
Sending Cash Directly
Handing someone cash is the simplest transfer method, but it only works in person. Never mail cash in an envelope. There’s no way to track it, no proof of delivery, and no recourse if it’s lost or stolen. If you need to send a physical payment through the mail, use a money order or cashier’s check instead.
Which Method to Use
Your choice comes down to a few practical questions: how much are you sending, how fast does it need to get there, and are you willing to pay a fee?
- Small, casual amounts to someone you know: Use Zelle, Venmo, or Cash App. Free and nearly instant.
- Transfers between your own bank accounts: Use ACH. Free, arrives in one to two days.
- Large, time-sensitive payments: Use a wire transfer. Expect to pay around $26 but get same-day delivery.
- Payments by mail or without a bank account: Buy a money order at a post office or retail store for a few dollars.
Tax Reporting Rules for Transfers
Sending money to a friend or family member as a gift or personal reimbursement is not taxable and doesn’t need to be reported. The IRS is clear that personal payments received through apps like Venmo or PayPal are not taxable income.
The rules change when you receive payments for goods or services. Payment apps and online marketplaces are required to send you a Form 1099-K, a tax document reporting your total payment volume, when your transactions for goods or services exceed $20,000 across more than 200 transactions. Even below that threshold, you may still receive a 1099-K, and any income you earn is taxable whether or not you get the form.
If you accept credit or debit card payments directly from customers (through a card reader or payment processor, for example), you’ll receive a 1099-K regardless of how many payments you received or the total amount. This applies to freelancers, small business owners, and anyone selling goods at a profit. Personal transfers between friends, like splitting a dinner tab, don’t trigger any of these rules.