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Zelle is real-time, while ACH is not.
by throwaheyy 6y ago
Zelle is real-time, while ACH is not.
- toomuchtodo 6y agoZelle is owned by a private company, owned by the US' largest banks [1]. The US Federal Reserve is working on a replacement [2] (FedNow) that presumably will have less power to keep banking entities (small banks, community banks) in the US with less pull off the network (with pricing or other mechanisms). From the perspective that instant payments should be an inexpensive, accessible utility for the benefit of all citizens, the Fed's FedNow efforts are preferable to Zelle or legacy ACH services. [1] https://en.wikipedia.org/wiki/Zelle_(payment_service) https://en.wikipedia.org/wiki/Zelle_(payment_service) [2] https://corpgov.law.harvard.edu/2020/08/31/fednow-the-federal-reserves-planned-instant-payments-service/ https://corpgov.law.harvard.edu/2020/08/31/fednow-the-federa...
- haltingproblem 6y agoI understand how Zelle pull off real-time for intrabank. For interbank, they are either covering it or have they built a payment service under the covers?
- kevin_thibedeau 6y agoThe final real reconciliation for Zelle is done over ACH.