Last Updated on September 15, 2022 by Babette Sasha
In this guide, we’ll explain what Zelle is, how it works, and which banks use it for business transactions.
Zelle is designed to work on all devices, with no restrictions or limits. The only requirement is that you have an internet connection. The app works as a wallet, and transfers are made instantly, without any fees or additional charges.
Zelle, a popular alternative to traditional banking, has been growing rapidly over the past few years. It’s a peer-to-peer mobile money service, which allows individuals to send money to one another, just like you would use a PayPal account.
What is Zelle?
Zelle is an easy and convenient way of sending money. You can send money to almost anybody across the U.S with a banking account in a U.S bank.
Transactions with Zelle typically take minutes. Hence, it is an easy fast, and secure way of sending and receiving money from wherever you are.
Only the email or phone number of the recipient is required to make a payment. Zelle is hassle-free and saves you time.
Funds are sent directly from the sender’s bank account to the recipient’s bank account. Hence there is no fear for security reasons.
It is easy to send and request money. Just have to click “send” and enter the amount you want to send. The money transfers in no time.
Zelle was developed by more than 30 major banks of the U.S. It also has a mobile application for its users. You can also use Zelle through the mobile banking apps of the participating banks.
Bank of America, Chase, Citi, and Wells Fargo are some of the banks associated with Zelle.
Read This to Know >> Zelle transaction limit with Bank of America
Can I Use Zelle For Business Accounts
If you have a business account in your bank, you can also use Zelle for your business with that account.
Can I use Zelle for business?
With emerging contactless payment options, now you can use Zelle for your business too.
In the year 2020, Zelle became available for business customers who bank with 11 selected banks.
Hence, it can be used for your small business too.
Keep in mind, you must have a business banking account. If you want to use it for personal use, you must have a different email address and phone number.
Which Banks Use Zelle for Business?
The 11 participating banks are as follows:
- Bank of America
- Bank of the West
- Chase
- Citi
- FirstBank
- Frost
- Investors Bank
- Morgan Stanley
- Truist
- U.S. Bank
- Wells Fargo
Therefore, you can send and receive the types of payments associated with your business too.
What are the transfer limits with Zelle?
The transfer limits are different for each bank. Some banks have lower transfer limits than others and vice versa. For small business accounts, the limits are usually higher than an individual account. Banks put a limit on both transfer limits and the number of transfers you can make.
Below are the limits for the Bank of America:
If you have a business account associated with the Bank of America, there are different limits compared to an individual account.
Daily transaction limit: $15,000 per day
Weekly transaction limit: $45,000 a week
Monthly transaction limit: $60,000 monthly
There is also a limit to the number of transfers you can make in a day.
Daily transfers limit: 20 transfers per day.
Weekly transfer limit: 60 transfers per week.
Monthly transfer limits with Zelle: 120 transfers per monthly
The single transaction limit for an individual account is $3500 and $15,000 for a small business account.
Does Td Bank Use Zelle for Business account?
No, Zelle is available only for a select few banks. Read the list above. Zelle does not support small business accounts with TD bank.
Hence you cannot use Zelle for business with the TD bank account.
How To Use Zelle for Business
If you are a small business owner, you can receive money directly from a consumer to your bank account.
Zelle also allows you to send a request with a note; you can remind your customers of their due dates. You can also use Zelle to pay your suppliers or vendors.
How to set a business account on Zelle?
First things first: you need to have a bank associated with Zelle and enabled for business accounts. You must also have a business account with your bank.
You can enroll in Zelle through your mobile banking app.
If you also have an individual account enrolled with Zelle, make sure you enroll for your business account with a different phone number or email address.
My bank does not support Zelle. Can I still make a business account with Zelle?
Currently, Zelle does not provide this feature. To make a business account with Zelle, you must have a bank account with a participating bank or credit union.
Note that only a few banks support business accounts so, you should check for those banks mentioned above.
Does Zelle require a fee for small business accounts?
Zelle is free for money transfers, whether a business or an individual account. However, there might be some fees charged by your financial institutions. Check from your bank to know if they charge a fee for small business accounts.
How to know if a small business or a consumer can pay me with Zelle?
If they have a Zelle account, they can pay you simply by entering your email address or phone number. If you want your customer to make the payment through Zelle, ask them to go to their banking app and look for Zelle.
Only those enrolled with Zelle can send money to business accounts.
How to set up a Zelle business account:
It is easy to enroll with Zelle for your business account. Before starting, make sure you have a business banking account in one of the 11 banks mentioned above.
You cannot use the same phone number and email associated with your personal account. Keep in mind, use a different email and phone number for your business account. Let us know the steps to enroll in Zelle:
Launch your mobile banking app.
Access Zelle by enrolling with your mobile phone number or an email address.
Once you have signed up, you can send money to your recipient by entering their email address,or, their U.S.-based phone number.
Now simply choose the amount of money you want to send and money gets transferred almost within minutes.
Is Zelle Safe for Business?
You might be confused about whether to start using Zelle for your business yet. There can be trust issues associated with online banking and it’s totally fine. Neither Zelle nor your financial institution shares your financial data with anyone. Hence, data remains safe in the hands of Zelle and you need not worry.
Transfers with Zelle are secure since it does not store data on a user’s servers. As Zelle does not require physical cash or check for transfers, payments can securely move from one bank account to another. Also, you can view all your transaction history and keep track of your payments. These reduce the chances of fraudulent transfers.
Transfers with Zelle take no time. Money moves directly from one bank account to another. So, there can be no third-party interference.
You can also cancel a Zelle payment if you send money to the wrong person. However, you must know that you can only cancel a payment if the amount has not yet reached their bank account.
Once the money reaches the bank account, it is almost impossible to get the money back. If you have sent money to someone who has not enrolled with the Zelle app, you might get to cancel the payment. Money remains in a Zelle account for at least 14 days before they can enroll and claim it.
Should I Use Zelle for my business?
Zelle is a fast and straightforward way of sending money directly from your bank account. It is simple and easy to use and transfers money to anyone in the U.S. transactions have never been this easy before. For small business accounts, Zelle is like a godsent gift.
In Conclusion: Which Banks Use Zelle For Business Transactions
However, there are only a few things you should be careful with using Zelle.
Once the money reached a recipient’s account. It is impossible to get it back. Zelle has no security feature to protect you from scams and fraud. If you are willing to take responsibility for these, then you are ready to start using Zelle! Let us know in the comment box.
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