Author: Edeh Kelechi
Zelle is a digital payment service that enables users to send money to friends and family. Users can send money to recipients using their email addresses or phone number. Zelle works with several banks in the United States to provide this service, which sets it apart from other peer-to-peer (P2P) platforms.
However, Zelle is changing to improve its service and make sending money through its platform even more effortless.
What’s New With Zelle?
Since its launch, Zelle has facilitated over half a trillion dollars in transactions. Zelle is constantly updating its features and policies to make money transfers as seamless as possible.Â
Zelle Latest Updates
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Privacy Policy Update
Zelle recently updated its privacy policy and features, stating that they want users to be fully aware of how they can control their personal information on the platform. The privacy feature allows users to be in charge of the information they want to share with Zelle and how they want it to be used. The personal information includes but is not limited to name, bank account information, home address, email address, and phone number.
Zelle also enhances its data deletion tool; you can now delete your data from Zelle’s servers permanently. Also, with the updated data retention policy, Zelle can only keep your information for a limited time.Â
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Tax Law Update
This year, the IRS passed a law requiring digital payment platforms like Zelle to report payments for goods and services above $600. This means that users with business profiles that receive this amount or more are required to fill a 1009-K form. However, Zelle users are exempted from this law as Zelle will not be reporting your payment to the IRS. Zelle, however, advises users to report any taxable income that they receive to the IRS.Â
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ClearXchange Shutdown
ClearXchange is a finance company launched in 2011, providing services like peer-to-peer (P2P), business-to-business (B2B), and government-to-consumer (G2C) payment services. In 2016, Early Warning Sevices LLC purchased the platform and launched Zelle to handle their P2P payment services, while clearXchange managed G2C and B2B services.
However, clearXchange will be shutting down on the 30th of June, 2022, and its users have to deactivate their accounts and join Zelle to continue receiving payments.
Deactivate your ClearXchange Account and Switch to ZelleÂ
- Log into your clearXchange account and delete it.
- Download Zelle from your app store and sign up using your phone number and debit card after deactivating your clearXchange account.
- If you signed up using your phone number, you could add your email address in the app settings to receive payments through it.
Users will have until the 29th of June to deactivate and join Zelle to avoid delays in payments.
Conclusion
Zelle allows users to send and receive money easily and quickly without paying any fees. On Zelle, users with business profiles do not need to worry about the new tax updates, they can continue to receive payment and only report taxable income themselves. With Zelle updated privacy policies, Zelle continues to maintain its transparency on what it does with users’ personal information.
