Need to Know
- The new feature allows Venmo customers to access funds from paper checks, including stimulus checks, within minutes.
- Fees associated with the new feature, called Cash a Check, will be waived for those cashing stimulus payments for a limited time.
- Cash a Check users will need to have Direct Deposit or a Venmo Debit Card enabled on their Venmo account to use the feature.
As residents of the US begin receiving the second round of COVID-19 stimulus payments, Venmo has released a new feature that allows users to access funds from paper checks instantly.
The new tool, called Cash a Check, functions similarly to the mobile deposit feature offered by many mobile banking apps. Venmo users can take a photograph of their paper check, and submit that photo to the Venmo mobile app. The image will then be verified, a process that Venmo says will usually take seconds or minutes, and the funds deposited in the user’s Venmo account.
Venmo will be temporarily waiving the fees associated with the Cash a Check feature for those who are depositing government stimulus checks. Eventually, 1% fees will apply to any check cashed in the app, with a minimum fee of $5.00. Other checks will have a 5% check-cashing fee.
“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, SVP and GM, Venmo. “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.”
Roughly 7.4 million Venmo users are between the ages of 18 to 34, meaning a large proportion of Venmo’s user base may be using the new feature for stimulus checks as the Millennial demographic has been particularly hard-hit, financially, by the COVID-19 pandemic.
Venmo and its parent company PayPal have been working to introduce new features throughout the pandemic to help ease the financial woes of its user base, including the rollout of a buy now, pay later feature. PayPal also launched QR-enabled payments, making it a leader in the contactless payments arena, also a growing field due to the ongoing pandemic.
Cash a Check is currently available to iOS and Android users, and Venmo suggests that those who want to use the feature update to the most recent version of its mobile app.