Venmo, PayPal owned peer-to-peer payment service recently added a new feature called Cash a Check for both its Android and iOS apps. This new feature allows select customers in the U.S. to take a snap of a check, send it for review using the Venmo app on a mobile device, and deposit the fund into a Venmo account instead of visiting a physical check-cashing location or worrying about following social distancing measures.
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Venmo's parent company, Paypal already has a similar feature that allows users to cash checks in the PayPal app. The cashing service in both the app is provided by partners First Century Bank and Ingo Money.
The feature can be used to cash any printed, payroll, and U.S. government checks, including the new government-issued stimulus checks giving people quick and easy access to their money, especially for people who are receiving paper checks and would have to physically go to a cashing location.
The U.S. government has been sending stimulus checks to most Americans, in response to the COVID-19 induced economic crisis that forced millions of people out of work and putting many in serious financial hardships.
In the midst of nationwide lockdown and social distancing protocols, fintech companies have come to the rescue by providing convenient, safe, and reliable payment methods to people for sending money to friends and family who are in dire need of financial support. The use of contactless payments has been on the rise amid the virus scare. The pandemic has indeed accelerated the use of fintech solutions.
Cash Your Stimulus Checks with Venmo's Cash A Check Feature from the Safety of your Home at Zero Cost
Venmo is waiving all fees for cashing stimulus checks deposits for a limited time to provide affordable access to the much-needed fund so that people can use it to pay for things they need the most.
Normally, as per PayPal's terms and conditions, the fees charged for cashing a check is 1% (a $5 minimum) for payroll or government checks with pre-printed signatures and 5% for hand-signed checks, with a minimum of $5.
Darrell Esch, Venmo SVP and GM, talking about the new service said the company is continuously looking for new ways for the community to have easier access and manage their money, especially as people continue to experience financial hardships amidst the global pandemic.
How to Use the Venmo app for Cashing Stimulus Checks?
To use the Cash a Check feature, you'll need a Venmo account, a Venmo debit, or an active direct deposit on the account and a verified email address. The feature also requires location services to be active.
Here are the steps to use the Venmo app for cashing stimulus checks:
- Download the Venmo app if you haven't and create an account first
- Tap on the side menu panel
- Choose Settings
- Scroll down and under the Buying section, tap Cash a Check
- Tap Get Started
- Read and accept the terms and privacy policy
- Enter the check amount
- Follow the onscreen prompts to use the app to take a photo of your check
- Tap the checkmark to proceed
To verify the check, Venmo will then conduct a review before disbursing the fund. The review process only takes a few seconds to 3-5 minutes. In rare circumstances, it may take an hour to make the approval decision.
Once the check is approved, the money is immediately transferred to the customer's Venmo account. If the check isn't approved, it is not processed, and the funds aren't sent to the account.
Tap on the Check Activity totrack your transactions.You'll find it after tapping the setting icon on the screen where you entered the check's amount.
To access the new Cash a Check feature, you will have to download the latest version of the Venmo app (both on iOS or Android) and your system should be running the latest operating system on your mobile device.
Conclusions
The check-cashing feature adds to Venmo's expanding banking services, although it is far from being an alternative to an online banking app.
It also launched its first credit card to eligible users in the U.S. each having its own unique QR code and RFID chip and cashback rewards.
Venmo Direct Deposit Checking Or Savings
An important benefit of the new feature is that the influx of stimulus payments can help increase Venmo's profit beyond the fees it charges. Having access to their stimulus check deposits and payroll in their Venmo account, people may use the money for online transactions or use their Venmo debit card to do the same. Venmo can then earn revenue via the transaction fees.
In less than two years, there has been a significant increase in Venmo users, now standing at over 50 million. Venmo's user base is largely millennials under 35 years of age.
PayPal forecast Venmo's revenue to approach $900 million in 2021 owing to investments in new capabilities and reach profitability in 2022.
We know now, more than ever, many of you are using Venmo to spend and manage your money. Whether you’re sending payments to support friends, family, and people in your community, or paying for essentials like groceries and bills, we’re here to help.
Venmo Direct Deposit Reviews
Having quick and easy access to your money is important, especially in times of uncertainty. That’s why we’ve recently started a phased roll out of Direct Deposit on Venmo, so select users can choose to have their paychecks or economic impact payments (stimulus payments)* sent to their balance with Venmo.
Setting-up Direct Deposit
If you’re eligible to use Direct Deposit, for example, if you have the Venmo debit card, you’ll be able to set up Direct Deposit, so your paychecks or tax refunds,** and even government stimulus payments can be sent to your balance with Venmo. Instead of waiting for a paper check, you can access your funds sooner with Direct Deposit, so you can pay Venmo friends or family, help out someone in your community, or shop at millions of online retailers that accept Venmo at checkout, or spend with your Venmo card everywhere Mastercard® is accepted.
Through Direct Deposit with Venmo, we’re not only making it easier to get paid right on time, but you may be able to access your paycheck up to two days early.*** While most traditional banks add a day or two for processing, we help get your money to you as soon as we receive notification from your employer, all without any extra fees.**** With faster access to your paycheck, you can do more with your money, sooner.
Setting up Direct Deposit is simple. To see if you’re eligible, select Settings from the drop down menu in the app and tap Direct Deposit, then fill out your employer’s Direct Deposit form using your Venmo-assigned Account and Routing Numbers, and we’ll do the rest.
Accessing Your Economic Impact Payment Digitally
In addition, the IRS launched a new tool for people around the country who would like to receive their Economic Impact Payment digitally, rather than via a paper check. This means select Venmo users can elect to send their stimulus payment directly to their balance with Venmo once they have Direct Deposit set up.
Once you have been enrolled into Direct Deposit, you can receive your stimulus payment into your balance by following these steps:
Log into your Venmo account in the app.
To view your account number and routing number, tap the ‘☰’ icon, and then click on Settings → Direct Deposit, then select ‘Show Account Number’ to see your Venmo assigned account number, as well as the routing number required for the IRS portal.
You can enter the account number and routing number listed in your Venmo Profile under Direct Deposit in the IRS tool to receive your payment.
*Direct Deposit information can only be changed using the IRS tool if you have not filed your 2019 or 2018 tax return, or if you filed your 2019 or 2018 tax return without providing Direct Deposit information.
Direct Express
**Limited to Direct Deposit of a federal or state tax refund, where permitted under applicable law. If you have questions about Direct Deposits from a federal agency, visit godirect.gov.
***Early access compared to standard banking practice of posting funds at settlement and subject to your employer providing pay information to the bank prior to payday. It may take up to two pay cycles for Direct Deposit to take effect. Transactions are reviewed, which may result in delays or funds being frozen or removed from your account.
****The availability of Direct Deposit is subject to your employer sending paycheck information 1-2 days in advance of payday. While Direct Deposit is available at no cost, certain other transaction fees and costs, terms, and conditions are associated with the use of the Venmo debit card. See the Cardholder Agreement and Venmo fees for more details.
The Venmo Mastercard® is issued by The Bancorp Bank pursuant to license by Mastercard International Incorporated. The Bancorp Bank; Member FDIC. Card may be used everywhere Mastercard is accepted in the U.S. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. The Bancorp Bank does not endorse or sponsor, and is not affiliated in any way with this reward program.
Article last updated 08/12/2020