Domain sales involve a third party fund handler most of the time.
Whether it’s PayPal, Escrow.com, or the Uniregistry Market, the process means that when money changes hands, someone else other than the seller gets to keep a portion of it.
Zelle is a relatively new method of inter-bank fund transfers. It’s only for US based banks that participate, and both buyer and seller need to be registered with Zelle at their respective bank accounts. They can also use the Zelle App.
Is Zelle fit to buy and sell domain names?
For starters, Zelle has no fees, which makes it very attractive for small transactions. Zelle has transaction and monthly limits, but does it offer protection to the seller?
Apparently, Zelle transfers are final, and not subject to reversals. How does Zelle handle fraud?
When the consumer initiates a transfer of funds, they are not covered for fraud. For example, paying via Zelle won’t protect you for not receiving the domain name. You are only covered if someone uses Zelle to hack into your account and transfer out funds.
Therefore, you should only use Zelle with parties you absolutely trust. Just make sure the trust is mutual. 🙂
And a fun observation: Zelle doesn’t own Zelle.com, ZelleApp.com or Zelle.app – they can be found at ZellePay.com.
