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Learn about Zelle’s pros, cons and how it compares to other instant digital payment methods.
Many businesses incorporate digital payment formats because they bring many benefits that checks and cash can’t offer. For example, digital payment facilitators like Zelle transfer money from one bank account to another within minutes.
Instant payments with minimal — or no — fees can be a game changer for small businesses. You can collect and send money 24/7 and provide your customers with a convenient payment method. If you’re new to Zelle, we’ll explain how businesses can use this digital platform to simplify sales and payments.
Zelle is a digital payment platform that makes sending and receiving money easy for people and businesses. While many businesses accept mobile wallet and NFC mobile payments, they may not be familiar with Zelle.
Zelle was founded by Early Warning Services in 2016 and is headquartered in Scottsdale, Arizona. Its U.S.-based peer-to-peer (P2P) and business-to-business (B2B) mobile services allow users to send and receive money using only the recipient’s mobile phone number or email address.
Zelle helps businesses and individuals reduce paper check usage and cash transactions. Zelle transactions are instant; the service even notifies you via email or text when you receive a payment.
Over 1,800 financial institutions have Zelle partnerships. While anyone can use Zelle’s P2P service via their bank or the Zelle app, not every bank supports Zelle for businesses. Your financial establishment’s business banking services must specifically include Zelle as an option for your business bank account.
With steady business and consumer adoption, Zelle transferred hundreds of billions of dollars in 2023 alone.
Not all financial institutions with Zelle integration offer P2P and B2B services through their mobile apps. Check with your bank or credit union to see which payment options it offers.
When you use Zelle for business, you connect the payment platform to a corporate bank account. You can then send and receive funds almost instantly without racking up credit card transaction fees, since Zelle doesn’t support credit cards.
Zelle was initially used for P2P transactions only. However, in 2018, the company introduced the Zelle business account function. To use Zelle for business, business owners must have an established checking or savings account at a financial institution that supports Zelle for business. Then, they can send and receive money via their financial institution or its mobile banking app.
Because Zelle payments are tied directly to a bank account, they’re transmitted in minutes; this removes the hassle of physical invoices and checks. Businesses don’t have to wait for a payment to arrive by mail — it’s all digital.
Here’s how to get the most out of using Zelle for business:
All Zelle transactions come with a detailed digital record, so you can keep your bookkeeping efforts tidy and organized for tax season.
When you’re creating invoices, add Zelle as a payment method by including your Zelle-enrolled business email or phone number.
The complete list of financial institutions that use Zelle includes hundreds of options.
Well-known banks and credit unions that accept Zelle include the following:
Zelle doesn’t rely on paper checks or cash, so payments can transfer immediately from one account to another.
However, instant payment isn’t perfect. If you send a payment to the wrong person, you can request a chargeback only if the charge shows as a pending transaction. When a charge is pending — or if the recipient doesn’t have an account with Zelle — immediately contact your bank to cancel the transaction. If the recipient doesn’t have a Zelle account, you may have to wait 14 days to receive your money back.
If you send money to the wrong account, or if a customer sends a payment to the wrong account, you’re typically out of luck. However, Zelle now offers a reimbursement process for “specific scam types,” but always double check the recipient before sending your money.
When sending money to a new recipient via Zelle, send $1 for the first transaction. Once the initial transaction is complete, you can instantly verify its success. This extra step prevents you from sending a large sum of money to the wrong contact.
Zelle does not charge fees for its service. However, banks can set transaction limits and may charge fees when you use Zelle. Contact your bank to see if any fees apply.
Here’s how to start using Zelle for business:
Currently, Zelle for business does not integrate with accounting software. However, the best accounting software provides options for recording Zelle transactions manually. Use your Zelle-associated bank account to find a list of business-related transactions.
Here’s how to manually enter Zelle various transactions in popular accounting software:
QuickBooks Online
To learn more about this accounting software, read our review of QuickBooks Online.
Oracle NetSuite
Check out this helpful video tutorial to learn how to enter expenses manually. Read our Oracle NetSuite review if you’re interested in learning more about this solution.
Zoho Books
While Zoho doesn’t provide specific instructions for Zelle, it has tutorials for popular payment gateways, such as Stripe, PayPal, Square, ACH and Braintree. Learn more about this software in our Zoho Books review.
Yes. A business bank account is required to use Zelle for your company. However, your customers can use Zelle with any bank account or use the Zelle mobile app.
Zelle uses direct bank-to-bank transactions, so IRS 1099-K reporting rules don’t apply. Accurate financial reporting to the IRS is the business owner’s responsibility; however, Zelle provides transaction records for easy archival.
Tip: Just because Zelle doesn’t report how much your business makes in transactions doesn’t mean you won’t have to report it. Use different tax tips to stay up to date on the IRS taxable transaction limit.
Zelle does not limit transactions when you are using a small business bank account. However, your bank can limit transaction numbers and amounts. Contact your bank to confirm specific transaction restrictions.
Zelle is one of many B2B payment options vying for your attention. Here’s how Zelle compares to popular competitors in the B2B digital payment space:
| B2B Digital Payment Company | Number of Users | Accepted Payment Types | Compatibility | Transaction Fees |
| Zelle | 120 million
(U.S. only) |
|
Web, iOS, Android |
|
| Apple Pay | Over 500 million |
|
iOS |
|
| Cash App | 55 million |
|
Web, iOS, Android |
|
| Google Pay | 150 million |
|
Web, iOS, Android |
|
| PayPal | 431 million |
|
Web, iOS, Android |
|
| Venmo | 85.1 million |
|
Web, iOS, Android |
|
Zelle is a convenient and versatile payment solution for many businesses. However, because it’s completely dependent on individual banks to implement, it offers a bit less flexibility.
If you need a frill-free payment platform to help enhance and grow your business, Zelle is an excellent solution that simplifies transactions for customers and business owners. It’s also a strong addition to your payment options that offers customers more convenience. However, if you need a more comprehensive payment solution that tracks tax information, you’ll likely need to include other options; these other choices can include PayPal and Venmo for business in addition to accepting credit cards and other digital options via one of the best credit card processors.
Amanda Clark and Eduardo Vasconcellos contributed to this article.