Oops, I couldn't remember my password to login to post my question so I used 1Password and it replaced the subject line.

I am using ZPanels FTP server. I can login from shell but not from my FTP app.

Wish I could delete this post.

"... when I try from Transmit (FTP) it won't take the credentials."

Consider that a blessing in disguise. You should never, ever, ever use FTP for anything. See How To Use Filezilla to Transfer and Manage Files Securely on your VPS.

I've edited the title for you :]