Is Zelle HIPAA Compliant for Business Use

Zelle, a popular peer-to-peer payment service, is often used by businesses for various transactions. However, its HIPAA compliance is a major concern for healthcare providers and other businesses that handle sensitive patient information.

Zelle is not a bank, but rather a network that connects banks and credit unions, allowing users to send and receive money. According to the article, "Zelle is a network of banks and credit unions, not a bank itself", which raises questions about its ability to protect sensitive information.

Businesses must consider the risks of using Zelle for transactions involving patient data, as the service is not specifically designed for secure data transfer. In fact, the article states, "Zelle does not have the same level of security as a bank's online banking system."

If you're a healthcare provider or business that handles sensitive information, you'll want to carefully weigh the pros and cons of using Zelle for transactions.

Zelle is a fund transfer service that takes data security seriously, encrypting data at rest and in transit, using information access authorization controls, and controlling physical access to its data centers. Many of its security measures surpass what is required by HIPAA.

However, Zelle shares data for administrative and everyday business purposes, including with affiliates. Covered entities should be aware of this if they have conducted a thorough and comprehensive risk assessment before offering Zelle as a payment option.

Zelle is exempt from complying with HIPAA for payment processing services, but it's still possible for covered entities to violate HIPAA when using Zelle if PHI is disclosed in the memo field when requesting a payment or sending a payment reminder.

To prevent the risk of PHI being impermissibly disclosed, covered entities should make the use of Zelle HIPAA compliant by instructing members of the workforce not to enter PHI into the memo field.

Here are some steps to make Zelle HIPAA compliant:

By following these steps, covered entities can reduce the risk of violating HIPAA when using Zelle.

Payment compliance is a top priority for healthcare providers. HIPAA-compliant payments ensure that client personal information is not revealed to third parties, protecting both the client and the provider from significant fines.

The minimum fine for willful violations of HIPAA Rules is $50,000. This emphasizes the importance of understanding HIPAA compliance when making decisions about instant payment apps.

Using a billing system that allows for easy invoicing and convenient payment options can help maintain a healthy relationship with clients. Inconsistent billing and limited payment options can create resentment and lead clients to seek alternative providers.

To avoid HIPAA penalties, use an online payment method that is explicitly HIPAA compliant, or a traditional method like credit card, ACH, or cash. Any third-party application used to send and receive information about a client must be certified as HIPAA-compliant and willing to enter into a Business Associate Agreement (BAA).

Here is a list of payment methods that are NOT HIPAA-compliant:

These payment providers sell user data to third parties, putting client personal information at risk.

Zelle is not required to be HIPAA compliant, but it does take data security seriously.

It implements measures to protect against the loss, misuse, unauthorized access, disclosure, or alteration of personal information.

Zelle encrypts data at rest and in transit, which is a strong security measure.

It also uses information access authorization controls and controls physical access to its data centers.

Many of Zelle's security measures surpass what is required by HIPAA.

However, Zelle does share data for administrative and "everyday business" purposes.

This includes sharing data with affiliates, which is something to be aware of.

Covered entities should have conducted a thorough and comprehensive risk assessment before offering Zelle as a payment option.

They should also implement procedures to make the use of Zelle HIPAA compliant.

For example, prohibiting members of the workforce from entering PHI in Zelle memo fields is a good practice.

Having a compliant payment system is crucial for your private practice, as it protects your clients' personal information and avoids potential HIPAA penalties. The minimum fine for willful violations of HIPAA Rules is $50,000.

To be HIPAA compliant, you should use an online payment method that is explicitly HIPAA compliant or a traditional method of getting paid, such as credit card, ACH, or cash. This ensures that you're not sharing sensitive patient information with third parties.

You can also use Square, which is HIPAA-compliant and allows you to accept FSA and HSA cards. This extra convenience is a big plus for your clients.

However, some popular payment apps like Venmo, PayPal, Zelle, and Apple Pay are not HIPAA-compliant. Using them to receive payments from clients puts their personal information at risk and opens you up to HIPAA penalties.

Here are some HIPAA-compliant payment options:

These options are all HIPAA-compliant and won't keep you up worrying at night.

Venmo is not HIPAA compliant. This means it's not a secure choice for billing in your private practice.

If you're looking for a HIPAA-compliant instant pay app, you have limited options, and it's essential to consider the fees associated with each app.

Ivy Pay is a HIPAA-compliant instant pay app that offers a flat rate of 2.75% per charge, making it a more cost-effective option compared to other non-compliant apps like Stripe, which charges 2.9% per transaction plus 30 cents.

Ivy Pay also has no membership or monthly fees and doesn't require a contract, making it a convenient choice for private practices.

For a comparison of popular payment apps and their compliance status, see the list below:

Zelle doesn't have to comply with HIPAA, but covered entities must implement procedures to make its use HIPAA compliant.

Covered entities need to be aware that Zelle shares data with third parties, which is why they should alert patients and plan members to the risk of disclosing personal information in the memo field of the payment page.

Fees for transactions may apply depending on the bank or financial institution providing the Zelle service, and limits apply to how much can be transferred in a single transaction.

As a covered entity, it's essential to consider the implications of using Zelle for patient payments. Zelle can be a convenient and inexpensive way for patients to pay for healthcare, but it's not HIPAA compliant on its own.

To make Zelle HIPAA compliant, covered entities must implement procedures to protect patient data, particularly when sharing information with third parties. This includes alerting patients to the risk of disclosing personal information in the memo field of the payment page.

Fees for transactions may apply depending on the bank or financial institution providing the Zelle service. Covered entities should be aware of these fees when considering Zelle as a payment option.

Here are some key considerations for covered entities:

A Business Associate Agreement, or BAA, is an agreement between a healthcare provider and a third-party for the transfer of a client's PHI.

Signing a BAA makes the third-party completely responsible for protecting patient PHI, which can be a significant commitment.

Zelle, a popular payment app, doesn't sign BAAs, which means they're not HIPAA compliant. This is because they can't sign a BAA for each healthcare provider they work with.

Using a third-party payment provider like Zelle puts patients' personal information at risk, especially if an unforeseen event like a data breach occurs.

Mobile payments, however, don't necessarily fall under the scope of BAAs, which means you could technically use them.

Partnering with a payment processor that has access to sign BAAs, like Etactics, allows you to work with mobile payment apps like Zelle and Apple Pay.