Zelle isn’t just for personal use; it can also be a valuable tool for businesses looking to accept customer payments seamlessly. However, it’s important to note that not all banks support Zelle for business accounts. To utilize Zelle for your business, you’ll need to have a business bank account with a financial institution that offers Zelle payment transactions.
Several major banks, including Bank of America, Chase, Wells Fargo, and U.S. Bank, support Zelle for business use, allowing businesses to accept fee-free, contactless payments. While Zelle can be a convenient option for businesses, it may not fulfill all your payment processing needs, especially if you require features like accepting credit card payments.
If you’re considering using Zelle for your business, it’s essential to choose a bank that supports Zelle business transactions. You can check if your bank offers Zelle through its mobile banking app. If it does, you can easily enroll using your business’s mobile number and email address. Keep in mind that if you already have a personal Zelle account, you may need to use different contact information for your business.
Table of Contents
Who Can Use Zelle for Business?
To use Zelle for business, your bank must support Zelle business accounts. Here is a list of banks that currently support Zelle business transactions:
Banks that Support Zelle:
Here is a list of banks that use Zelle:
- Bank of America
- BMO Harris
- Chase
- Citibank
- Huntington
- PNC
- TD Bank
- Truist
- U.S. Bank
- Wells Fargo
How Zelle for Business Works
To use Zelle for your business, both you and your customers need to set up Zelle on a mobile phone or via online banking. Your customers don’t need to belong to the same bank as you; they just need an account with a participating U.S.-based bank in the Zelle network. Alternatively, customers can download the standalone Zelle app and link a debit card.
Here’s how a customer can pay using Zelle:
- Provide Your Zelle Business Info: Share your Zelle contact information (typically a phone number or email address linked to your account) with your customer. You can also use a Zelle QR code for convenience.
- Input Details: The customer enters your contact information and the payment amount in their Zelle app. Zelle might send a security code via text message or phone call for first-time recipients to verify the transaction.
- Receive Confirmation: You will get a notification from Zelle, usually via text message, confirming that the payment has been received.
How Much Does Zelle Cost for Businesses?
Zelle does not directly charge fees for business or personal transactions. Instead, transaction limits and fees are set by each user’s bank and can vary:
- Bank of America: Small businesses can send up to $15,000 per 24 hours, $45,000 in seven days, and $60,000 every 30 days, with a limit of 20 transactions per day and 120 per month.
- Chase: Users can send up to $7,500 per Zelle business transaction.
- Wells Fargo and U.S. Bank: Limits vary by user and recipient.
Consumers whose bank or credit union doesn’t offer Zelle can send up to $500 per week via the Zelle app, using a linked debit card. Businesses must be enrolled with a Zelle network bank to receive payments.
Benefits of Using Zelle for Business
No Fees: Zelle doesn’t charge fees for sending or receiving money, whether for businesses or customers. While most banks do not charge fees for Zelle, it’s wise to check with your bank about any potential fees and transaction limits before accepting payments.
Contactless Payments: Zelle allows customers to pay without cash, cards, or even using a checkout terminal. This means they don’t have to share sensitive account details like credit card numbers. For cash-only businesses or those taking one-off, in-person payments (such as at fairs or markets), Zelle provides a convenient payment option without needing a point-of-sale system.
Fast Transfers: Unlike other payment processors and P2P apps, Zelle facilitates direct transfers between bank accounts, typically completing transactions within minutes.
By using Zelle, businesses can offer a quick, fee-free, and secure payment method, enhancing the payment experience for both the business and its customers
Drawbacks of Using Zelle for Business
Doesn’t Support Credit Cards:
- Zelle is a direct bank account transfer service, meaning credit cards cannot be used for payments.
- Other P2P apps like Venmo and PayPal allow credit card payments for a fee.
- Businesses may need a payment processor to accommodate customers who prefer paying with credit cards.
No Purchase Protection:
- Zelle does not offer payment protection, and transactions cannot be canceled if sent to the wrong person.
- It is recommended to only send money to people you know and trust.
- Customers might prefer payment methods that offer purchase protection and the ability to request refunds.
- Purchases made for your business via Zelle are also not protected, so ensure funds are sent to the correct recipient.
Only Available in the U.S.:
- Zelle cannot be used with international bank accounts; both parties must have U.S.-based accounts within the Zelle network.
- This limitation makes Zelle unsuitable for businesses operating internationally.
Alternatives to Zelle for Business
Venmo:
- Venmo allows small businesses to register and accept payments, integrating with its parent company, PayPal.
- The platform provides features like returns and a 1099-K tax form for users receiving over $600 annually.
- Venmo charges a merchant fee of 1.9% + 10 cents per transaction.
- Instant transfers cost 1.5% of the amount transferred (minimum 25 cents, maximum $15), but you can avoid this fee with a one to three business day transfer.
Cash App:
- Cash App integrates with Square, a popular POS system for small businesses, and allows for direct payments via QR codes.
- There are no additional fees beyond Square’s standard processing rates: 2.6% + 10 cents for card-present transactions and 2.9% + 30 cents for card-not-present transactions.
- Instant bank transfers are free for business accounts.
- Cash App offers chargeback protection and does not add chargeback fees.
Chase QuickAccept:
- Chase business banking customers can use QuickAccept to process credit and debit card payments directly into their bank account.
- Payments typically appear in your account the same business day or the next business day if processed in the evening or on weekends.
- Fees include 2.6% + 10 cents for tap-to-pay transactions and 3.5% + 10 cents for manual transactions or payment links.
- Additional hardware for swiping credit cards must be purchased separately.
While Zelle offers a quick and fee-free option for business payments, its limitations—such as lack of credit card support, absence of purchase protection, and U.S.-only availability—may not make it suitable for all business needs. Exploring alternatives like Venmo, Cash App, and Chase QuickAccept can provide more comprehensive solutions for businesses, especially those needing credit card payments and additional security features.
Frequently Asked Questions (FAQs)
1. Can customers pay with credit cards using Zelle?
- No, Zelle does not support credit card payments. It only facilitates direct bank account transfers.
2. Is there purchase protection with Zelle?
- No, Zelle does not offer purchase protection. Payments cannot be canceled once sent, so it’s important to only send money to people you trust.
3. Can Zelle be used internationally?
- No, Zelle can only be used for transactions between U.S.-based bank accounts.
4. What are the transaction limits for Zelle?
- Transaction limits vary by bank. For example, Bank of America allows up to $15,000 per 24 hours, while Chase allows up to $7,500 per transaction for business accounts. Check with your bank for specific limits.
5. How do I enroll my business in Zelle?
- To enroll in Zelle, check if your bank supports Zelle for business. Then, use your business’s mobile number and email address to set up your Zelle account through your bank’s online banking platform or mobile app.
While Zelle offers a convenient, fee-free way for businesses to receive payments, it has some limitations. The inability to accept credit card payments, lack of purchase protection, and U.S.-only availability might make it less suitable for some businesses. However, for businesses seeking quick and straightforward bank transfers, using Zelle for business can be a valuable tool.
