Our Take
The bottom line:
Zelle, a peer-to-peer money transfer service and digital payment network, lets businesses accept bank transfer payments, typically free of charge. If you don’t need to offer customers the option to pay with a credit card, it’s hard to beat. If you’d like to accept credit card payments, though, you’ll need to use a separate payment processing company on top of it.
Zelle for Business
Payment processing fees
$0 Some banks may charge transaction fees.
Monthly fee
$0.00
Pros & Cons
Pros
- Typically no fees.
- Fast transfers.
- Easy contactless payments.
Cons
- Doesn’t support credit card payments.
- Transaction limits.
- Only available through participating bank accounts in the U.S.
Full Review
Similar to other money transfer platforms, like Venmo, Zelle allows your customers to send money from their bank account to yours. To use Zelle for your business, both you and your customers must set it up online or through your banking app. Your customers don’t need to belong to the same bank as you, just another participating U.S.-based bank in the Zelle network.
Though thousands of financial institutions offer Zelle for consumers, they don’t all support business account use. Here’s a non-exhaustive list of some major banks that support Zelle for business, ordered by how NerdWallet rates their business checking accounts:
Using a different small-business bank? You can find out if it offers Zelle through your mobile banking app. If it does, you can enroll using a mobile number or email address. If you already have a personal Zelle account, you may need to use different contact information for your business.
Zelle does not directly charge fees for business and personal transactions. Transaction limits and fees are determined by each user’s bank, not Zelle, and can vary. In general, most business banks don’t charge fees for Zelle, but they do place limits on transactions.
Zelle is best for businesses that:
- Don’t need to accept credit card payments: If your customers generally prefer to pay with credit cards, you’ll likely need to work with a payment processing company and potentially buy a credit card reader for in-person transactions. Zelle only facilitates bank transactions.
- Handle transactions infrequently: Zelle isn’t an ideal solution for businesses doing more than a few transactions each week or so. First off, it would be difficult to track who’s paid you and what for. Secondly, Zelle doesn’t offer purchase protection, which may give pause to clients making large purchases. Ultimately, Zelle is a convenient solution for the occasional transaction. Businesses doing multiple transactions per day may consider a more secure payment method, like ACH transfers or credit card processing.
Deciding factors
Payment processing fees | Zelle doesn’t charge transaction fees. While financial institutions can charge fees, they typically don’t. |
Monthly fee | None. |
Deposit timing | Usually within minutes. |
Customer support | Email and phone support seven days per week from 8 a.m. to 10 p.m. EST. |
How Zelle for Business works
After you set up Zelle on your mobile phone or via online banking, here’s how the payment process works:
- You provide your Zelle business info. Start by giving your customers your business’s Zelle contact information, typically a phone number or email address linked to the account. You may also be able to show your customer a Zelle QR code.
- Your customer inputs those details. The customer will use your contact information and payment amount to send the payment. Zelle often sends a security code via text message or phone call for first-time recipients to verify the transaction.
- You receive confirmation. After your customer pays you, you’ll get a notification from Zelle, typically via text message, that the payment has been received.
Customers also have the option to download the standalone Zelle app and link a debit card.
Where Zelle for Business stands out
Typically no fees
Zelle doesn’t charge fees to send or receive money, for businesses or customers. Very few banks charge fees to use Zelle either, but it’s best to check with your bank about potential fees and transaction limits before receiving payments.
Contactless payments
With Zelle and other payment apps, customers can pay without cash, cards or even using a checkout terminal. That means they don't have to share sensitive account details either, like credit card numbers. If you're a cash-only business or taking one-off, in-person payments, using Zelle can give you an extra way to accept payments without needing a point-of-sale system.
Fast transfers
Unlike payment processors, Zelle facilitates direct transfers between bank accounts. That means payments typically arrive within minutes, which is much better than the typical one to two business days it can take to receive funds from credit card purchases.
Where Zelle for Business falls short
Doesn’t support credit cards
Since Zelle is a direct bank account transfer service, credit cards can’t be connected to make payments. Other payment apps, like Venmo and PayPal, will link credit cards for a fee. Your customers may want the option to pay with credit cards; most businesses eventually need to turn to a payment processor to support them.
Transaction limits
The amount of money businesses can send and receive through Zelle varies depending on your bank. For example, Wells Fargo and U.S. Bank set limits according to the user and recipient — there’s no set, universal amount. Bank of America, on the other hand, caps how much small businesses can send at $15,000 per 24 hours, $45,000 in a seven-day span and $60,000 every 30 days. Plus, it limits you to 20 transactions per day and 120 per month.
This could be a big issue for businesses that handle high-volume transactions. If you need to ask clients to space their payments out so that you can stay within transaction limits, you could unnecessarily slow down your cash flow.
Only available through participating U.S. banks
Zelle is only available through participating banks, and it can’t be used with international accounts; both parties need to bank with U.S.-based financial institutions within the Zelle network. Because of this, the service isn’t a good fit for businesses operating abroad or working with non-participating banks, like Barclays or Bluevine.
Zelle alternatives
Venmo Business Account
Venmo is a peer-to-peer money transfer app that has features for small-business use. Businesses can register for the platform with a business account and incorporate payments with Venmo’s parent company, PayPal. Venmo also facilitates returns and sends business users a 1099-K tax form, unlike Zelle.
However, the service charges a merchant fee — 1.9% plus 10 cents per transaction between Venmo accounts — and doesn’t transfer directly to your bank account. Instant transfers cost 1.75% of the amount transferred, with a minimum fee of 25 cents and a maximum fee of $25. You can avoid an additional transfer fee if you opt to get your money in one to three business days.
Cash App for Business
Cash App is a peer-to-peer app that integrates with Square, a popular POS system for many small businesses (both services are owned by Block), but can also be used on its own. The platforms can share data, and Square checkout devices can display Cash App QR codes for direct payment. However, unlike Zelle, Cash App charges a 2.75% processing fee.
Standard transfers take one to three business days, and you can pay an extra fee for instant transfers.
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