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Using Zelle and Cash App to Collect Business Payments

Updated: May 1, 2021

About Zelle

Zelle is a United States–based digital payments network owned by Early Warning Services, a private financial services company owned by the banks Bank of America, BB&T, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank and Wells Fargo. The Zelle service's principal competitor is PayPal and its Venmo payment service. Banks are allowed to charge a fee for Zelle transfers involving their accounts. Zelle is not FDIC Insured.

About Cash App

Cash App (formerly known as Square Cash) is a mobile payment service developed by Square, Inc. that allows users to transfer money to one another using a mobile phone app. The service allows users to request and transfer money to another Cash account via its Cash App or email. Users can then choose to withdraw the money with its debit Visa card, called Cash Card, in ATMs or transfer it to any local bank account. In 2017 the capability to buy bitcoin was added to the app, and the ability to buy stocks (dollar amounts buying fractional shares) in 2020. Cash App is not FDIC insured.

Saving on Processing Fees As a business start up, you want to cut costs as much as possible until you turn a profit. But certain shortcuts could cost you more in the long run. Accepting payments through apps connected to your personal accounts takes away your legal protection. By doing this, you are acting as yourself and not as the business.

Think of it as a type of using payment processors as an insurance against personal liability because the transactions are in the business name.


You form an LLC. You have to follow the state laws where your LLC is formed, like making sure you use the business name for all transactions and advertisements. You conduct a transaction via zelle through your PERSONAL account and not the Business account. Should that customer be unhappy with the transaction and decides to sue, You now have no protection against personal liability.

Rule of Thumb: ALWAYS operate each business transaction as if you had to defend it in court.

They have a Cash App for business and now certain banks have opened up Zelle for business accounts. But you will have to keep up with your invoicing, expense tracking, or just plan keep your books. If you are bad with keeping up with records and paperwork, you would want to use the payment processor services. You can also write the fees off as a business expense. ACCOUNTING Mixing personal and business transactions is an Accounting NIGHTMERE!. Again, it is tempting to opt for convenience and shortcuts, but setting up your payment structure before you get busy is worth it.

To better protect yourself against business liability, follow these steps:

1- If you don't have one, Open a business Account. Credit unions and Community Banks tend to have less fees and better interest rates than commercial banks.

2- Research the different ways to accept business payments Clover, Square, PayPal, Business Cash App, services through your bank, etc

3- Then connect the payment processing agent of choice to your business bank account.

Resources: Zelle Review

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