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Peculiarities of using Zelle service for transactions with US dollars (USD)

Users often use payment systems such as PayPal, Skrill, Neteller, Zelle, and similar ones as an alternative to online banking, as such services allow users to make almost instant and cheap transfers worldwide.

What is Zelle?

Zelle is a payment service that allows you to make fast and cheap transfers in USD and other currencies between users and effectively manage payments for small and medium-sized businesses.

The Zelle service was launched in June 2017 by Early Warning Services, LLC, a private company owned by central banks such as:

  • Bank of America,
  • JP Morgan,
  • PNC Bank,
  • Capital One,
  • Truist,
  • Wells Fargo.

Zelle is essentially the successor to the once popular clearXchange payment service, which was bought out by Early Warning Services, LLC in January 2016 and closed as early as 2017.

Early Warning Services, LLC, the company behind the Zelle payment service, has provided financial services to individuals and businesses for over 30 years and has partnered with over 3,000 banks and other lending institutions worldwide.

Zelle's financial performance

According to PR Newswire, in 2023, individuals and small companies made about 2.9 billion transactions for $806 billion through Zelle, a 26% increase over the previous year. During the same period, analysts recorded about 120 million active users of the Zelle payment system.

In Q4 2023 alone, Zelle's turnover totaled a record $219bn. In other words, on average, users made transactions worth more than $100m every hour.

At the same time, Early Warning Services, LLC has made significant strides in countering fraud: in 2023, they accounted for less than 0.1% of total transactions.

How does Zelle work?

Zelle uses the well-known electronic money transfer system Automated Clearing House (ACH) to speed up payments between bank accounts in the US. Thus, Zelle provides very fast money transfers compared to traditional bank transfers.

Zelle payment service is available through mobile and web applications. Zelle provides a simple registration procedure and does not require users to enter sensitive information related to their bank accounts.

How do I send USD to Zelle?

It is worth noting that as of March 2024, Zelle does not work with banks on the OFAC sanctions list.

Therefore, USD payments through this service may not be available in some regions.

1. Authorisation

First, the user must log in to their account via the website or mobile app on iOS or Android. Then, they must find and connect their bank to the Zelle app or top up their account with a bank card.

After authorization, the quick payment with Zelle section will appear, with the option "Send Money with Zelle."

2. Selecting the recipient of the payment

After selecting the option to send money, you must specify the recipient's details. To do this, you must add the recipient by clicking the "Add" button in the top right corner. Then, you will need to enter the recipient's personal details, such as first and last name, email address, or phone number.

You can transfer funds to Zelle for both users already registered in the service and those who have yet to create an account. In the latter case, the recipient will receive an email or SMS notification with instructions on accepting the payment.

The recipient's data can be added directly from the contact list by selecting the corresponding option or imported from the mobile bank application — this is the most convenient option if you need to transfer funds to a familiar person whose data is already saved on your device.

3. Entering the payment amount

Next, you should choose USD currency and enter the amount to be sent to the recipient. After that, you should specify the account from which the funds will be sent. Each payment can be accompanied by a Memo in which you can select the reason for payment and other information that may be useful to the recipient.

4. Data validation and sending

The final step will be verifying the entered data to avoid errors during the transaction. Please note that once the funds have been transferred to a registered Zelle user, the transaction cannot be canceled, so it's best to verify all the data before pressing the "Send" button.

Cancellation can only be done if the recipient has no Zelle account yet. In this case, to cancel the transfer, you must go to the bank's personal cabinet on the website or mobile application and reject the operation there.

Conclusion

Zelle payment service is supported by exchangers that allow you to convert USD to cryptocurrency or other fiat currencies — their list can be found using BestChange by selecting the appropriate direction in the exchange table.

Exchange Zelle to e-currencies

On our site you can see the current exchange rates of Zelle USD to other electronic payment systems.

Exchange Zelle USD to another currency:

Exchange e-currency to Zelle USD:

© BestChange.com – , updated 03/12/2024
Reprints are allowed only with permission of BestChange

See also