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Understanding Zelle® for Small Business

Money transfer apps are a popular way of sending and receiving payments as a small business today, and one of the most commonly used apps is Zelle. One of the benefits of using Zelle is that you can either download it through its independent app or through your banking app, as more than 1,700 banking apps offer Zelle through their services.

Apps like Zelle make it easier for business owners, vendors, suppliers, etc. to send money back and forth without any extra hassle, fees, or long wait times. Here are a few things you should know about Zelle and how it can be used in your small business.

The Basics of Zelle for Small Business

Zelle functions like any money transfer app that allows people to quickly send payments to friends and family, but also to vendors, clients, or partners. You can also accept payments through Zelle as a small business. However, not all financial institutions support business account use. In order to use Zelle for business transactions, you need to open a business bank account through an institution that does offer this. Many of the major banks support Zelle for business use. You can also often use Zelle for business through your smaller local bank’s mobile app.

To get started, you and your customers/clients must set up Zelle on your phone or through online banking. It doesn’t matter if your customers have a bank account with the same institution as you, they only need to have an account with a bank that supports Zelle. Customers can also download the Zelle app independently and link their debit card information.

From there, you provide the customer with your Zelle business information, including a phone number or email address. They will use your contact information to send a payment directly to your account and you will be notified when the payment has been received. This also applies to outgoing payments from your business being sent to other businesses.

The great thing about using Zelle is it generally won’t cost you any fees. Zelle itself does not charge any fees for business transactions, and most banks don’t either. However, banks that offer Zelle often have transaction limits, some being within 24 hours, over a week span, per month, or per transaction. If using the Zelle app independently, users can send up to $500 per week. Zelle also does not charge fees for making instant transfers into your bank account, unlike competitors like Venmo, PayPal, and CashApp.

The Benefits of Using Zelle

Using Zelle makes sending and receiving payments easy. It gives you an additional way to accept payments without a point-of-sale system and doesn’t require you or customers to provide sensitive account details like credit card numbers or bank information.

Zelle also allows you to make and accept payments quickly and efficiently. The money sent through Zelle is transferred directly between bank accounts and usually deposits into the receiving account in minutes. You can then immediately transfer that money into your linked bank account.

There are a few things to keep in mind when using Zelle for business—the app does not support credit cards, so you must use a debit card or direct bank account. There is also no purchase protection on payments made using Zelle, and payments cannot be canceled if they are sent to the wrong person or business. For this reason it’s important to verify correct contact information and make payments carefully, especially large payments.

Talk to the Experts!

Many banks offer Zelle services through their app, and as mentioned, even some small local banks offer it as well. Institutions like Republic Bank of Chicago have representatives at the ready to help you learn more about using Zelle and get your business up and running in the app. If you have more questions about Zelle for Business, reach out to us at 800-526-9127 to get started.

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