Skip to main content

Venmo adds a check cashing feature, waives fees for stimulus checks

Venmo this morning announced it will begin to offer a new check cashing service, “Cash a Check,” in the Venmo mobile app. The feature, which is being rolled out to select users starting today, can be used to cash printed, payroll and U.S. government checks, including the new stimulus checks, the company says. Though typically […]

Venmo this morning announced it will begin to offer a new check cashing service, “Cash a Check,” in the Venmo mobile app. The feature, which is being rolled out to select users starting today, can be used to cash printed, payroll and U.S. government checks, including the new stimulus checks, the company says. Though typically there will be fees associated with the Cash a Check feature, Venmo says these are being waived on stimulus funds for a limited time.

To be eligible to use Cash a Check, Venmo customers will need to have either Direct Deposit or a Venmo Debit Card enabled on their account, location services turned on, and a verified email address.

Customers who gain access to the feature will then be able take a picture of their endorsed check and send it to the Venmo app to review, much like they would if cashing a check in a mobile banking app. The check will be reviewed in a few seconds, though in special circumstances, the review may take several minutes or even up to an hour before the approval decision is made.

If approved, the money will be immediately transferred to the customer’s Venmo account.

Venmo will temporarily waive fees on stimulus checks rolling out now and over the next couple of weeks, but eventually 1% fees will apply to any government or payroll check cashed in the app with a pre-printed signature, with a minimum fee of $5.00. Other checks, including hand-signed payroll and government checks, will have a 5% check cashing fee, or $5.00 minimum, according to PayPal’s terms.

At launch, the Cash a Check service is provided by partners First Century Bank, N.A. and Ingo Money, Inc. Ingo Money already offers a similar feature to Venmo parent company, PayPal, to allow users to cash checks in the PayPal app. 

“We’re always looking for new ways to make it easier for our community to access and manage their money, especially as people continue to experience financial hardships amidst the global pandemic,” said Darrell Esch, Venmo SVP and GM, in a statement about the new service.

“We know that with health and safety top of mind for many, having a safe way to access stimulus payments is essential for many of our customers, especially those who are receiving paper checks and traditionally would have to visit a physical check-cashing location,” he said. “By introducing the Venmo Cash a Check feature, we are not only enabling our customers to access their money quickly and safely from the comfort of their own homes but are also waiving all fees for cashing government issued checks to ensure customers can use their stimulus funds to pay for the things they need most,” he added.

The company’s move into check cashing doesn’t make the peer-to-peer payment app an alternative to online banking, however. Instead, it serves largely as a way for Venmo to benefit from the influx of stimulus payments that are rolling out now to its U.S. users.

Fintech companies have been scrambling to prove their worth to customers by offering faster and easier access to stimulus payments. Banking startups like Current and Chime, for example, began sending out payments to customers ahead of other traditional banking institutions.

In addition, the stimulus funds can help boost Venmo’s bottom line beyond just the fees it charges. As Venmo users gain access to their stimulus payments or payroll in the app, they may then use that money to make transactions with online merchants or with their Venmo debit card. This transactions allow Venmo to make money through transaction fees, as well.

Venmo said the feature is rolling out now to mobile app users on iOS and Android. The company recommends users download the latest version of the app and updated to the latest operating system on their mobile device for the best performance.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.