Zelle: The #1 USA Digital Payment Method (Besides Crypto)

Posted Sep 7, 2021 02:08 AM

Disclaimer: Zelle is only for US residents, if you like what you see in this thread let me
know and I may make a bigger guide outlining for all payment methods with their pro's and con's for staying safe
in the marketplace!

Zelle:

Besides crypto, Zelle is one of the best payment methods in my currency exchanging opinion! I want to share my love for this payment method to others so I can see more people exchanging it! 😎 "Last year, people sent more than $300 billion through Zelle." Source (Zellepay.com) 307 Billion.. Imagine 307 Billion with NO FEES!

Instant Transfer's:

Possibly the best thing above all of other payment methods is that Zelle is tied directly to your bank account! This means when you receive your payment you can expect it within minutes and directly into your bank account balance. With other payment methods (PayPal, Cashapp, Venmo, Wire Transfers) you can expect a fee for a instant deposit (Usually has a weekly limit) and if not paying the extra fees you can expect a transfer to your bank that can take multiple business days! (Not on weekends, boohoo :( other payment methods) With other payment methods thats alot of moving funds around versus with Zelle it is one and done!

Minimal Payment Limitations:

Something common you will see with most payment methods like PayPal, Cashapp, or Venmo is that you will receive delayed payments in two ways; The first way you would typically come across a delayed payment is when you are trying to send a payment and you have hit a verification wall/flagged account from sending too often or too little in some cases, when you are using Zelle you can expect nearly never to have this issue since it is directly tied to your Bank Account and if your bank is the rare one (Chase) that does this you can go to or call your bank and have them increase your limits as if it was Wire Transfers. The other problem is when you are receiving a payment, a common thing you will come across with Paypal is that you have a payment come in but takes 14 days to verify in the balance before you can spend it leaving a lot of tied up funds/potential for it still be cancelled after the customer receives their product or funds, a similar thing happens with CashApp with failed payment's when trying to accept somebodies funds (they either have been sending too often or you have been receiving too often).

Most of these services as well will randomly limit your account (Paypal) or claim to be compliant with using the payment method for business but end up closing you from having one (or too many chargebacks) which CashApp does. Zelle on the otherhand you can always expect your account to be in good status as long as your relationship with your Bank stays solid or if you break their TOS.

With Zelle you can also have multiple accounts tied to multiple banks versus when using CashApp or Paypal you are typically only allowed a personal account and a business account. In Venmo's case you can't even have a business account unless going through extreme and various checks!! (Typically be approved for a ecom)

No Fee's:

Zelle is one of the very very few platforms that does not charge any fees. Nobody can say how long this will last but until then it is amazing. Nearly 7,000 financial institutions are represented in the Zelle Network via their customers using the Zelle common mobile app.

Payment Escalation (Chargebacks):

A common thing I hear with Zelle is that people are under the impression that the payment method is not able to be chargedback leaving sellers or potential scammers in the clear; this is not true. While you can use this to calm your mind in the case of receiving chargebacks (Hoping shady customers don't know) it is still mediocrely a hassle to be able to chargeback a payment putting sellers in a better position compared to PayPal where you can submit a claim/dispute for just about any transaction. For Zelle you would have to file a claim directly with your bank and it is only able to be chargedback if you can prove you lost authorization/access to your bank account, doing so puts your Bank Account in a difficult situation having everything being changed and escalated to fraud services/employee investigations. With that being said you can't really chargeback multiple times over the course of your bank account, the only real thing you should fear is stolen Bank/Zelle accounts which often get limited instantly with unrecognizable logins/more than 1 or 2 out of the blue payments but on top of that you can verify with people identities matching their Bank Account since it is actually tied.

The other advantage of Payment Escalation with Zelle is you have a good chance of fighting back the chargeback if you have a good relationship with your bank. In the midst of my days of actively currency exchanging everyday every once in a good while I would receive a Zelle chargeback from someone slipping through the cracks with a small transaction ($40 or so, very hard to chargeback multiple high value transactions over an extended period of time/near impossible) and my bank and the good relationship I had with them would actually end up calling me if anyone was chargingback. The banks communicate where these funds are going to and what has happened, so when I received my chargeback I was able to explain to my bank showing sufficient proof that I had completed a transaction and the other person had received it verifying their identity and I was able to keep my funds in most cases. They actually suggest not using Zelle for payments for goods & services since the process of chargingback is unlikely to be successful, but here on HF you can see how that can be useful to the buyer and seller in cases.

Mass Adoption:

As long as you're in the United States you can nearly expect almost every Bank to be able to compatible with Zelle. Most banking services are getting to the point where the payment method is directly included in your banking app or website being able to directly send to any email address or phone number (Your sending recipient doesn't even need to have an account you can send to a email/phone and have them signup later to accept your money). If you're one of the few banks (Usually Credit Unions) who haven't had Zelle adoption in-app or website you can just download the normal Zelle app and link your banking details to it. (Routing Number/Account Number)

The Downside:

The main downside for Zelle and its slow adoption of HF is that it for the United States Customer's only. Unless something changes the only way financial institutions can send money to each other internationally is through services like Wire Transfers/Bank Transfers using IBANN or Swift Codes.

Conclusion:

Start learning and using the new payment method today! If you have any questions feel free to post them and ask me and I'll do my best to answer them. Don't forget to always use a middleman and do your due diligence on the product you're buying. Zelle is an awesome payment method and I recommend anyone in the US who can use it to use it!!

[Image: 1-Zelle-Payment-from-US-Bank-Checking-Account.png]

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