PayPal’s Venmo has introduced a new “Cash a Check” function in its mobile app for some customers. The offer is being carried out in partnership with Ingo Money and its parent company First Century Bank.
The “Cash a Check” feature enables Venmo users to deposit printed checks, pay slips and government checks directly through the Venmo app. Cash a Check is supported by Ingo Money’s Mobile Check Load Service.
“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 hardship amid the global pandemic,” said Darrell Esch, senior vice president and GM at Venmo , in a press release on Monday.
“By introducing the Venmo Cash a Check function, we not only enable our customers to access their money quickly and securely from the comfort of their home, but also waive all fees for cashing government-issued checks to ensure that the Customers can use their stimulus funds to pay for things they need most, “said Esch.
The funds can be accessed via the financing options “money in minutes” and “money in days”. With Money in Minutes, funds can be deployed in minutes or up to an hour, costing the user 1% for pay slips and pre-signed government checks, with a minimum charge of $ 5 and 5% for all other accepted types of checks, including Hand-signed pay slips and government checks, with a minimum charge of $ 5. There are no fees for receiving the money with the Money in Days option.
For a limited time, Venmo is waiving the money-in-minutes fees for all government stimulus checks submitted within the app. PayPal has set an upper limit of $ 400,000 for stimulus checks and the offer period ends once the acceptance limit is reached based on the conditions of the marketing program.
According to Terms and Conditions, For the Money-in-Minutes program, Ingo commits to review the check within one hour of submitting it for approval. If the check is approved with funds transferred to a Venmo user’s account and the check is found to be fraudulent or Ingo is unable to collect the money from the check issuer, Ingo Money and its parent company First Century Bank will assume the loss. Both Ingo Money and PayPal reserve the right to collect financial and transaction history data from credit bureaus and other credit bureaus.
If a user chooses the Money in Days option, the money will be made available in a 10-day window if approved by Ingo Money, and the check will not be returned unpaid.
Registration for the “Cash a Check” feature requires initial and ongoing approval from Ingo Money.
The terms also provide for check deposit limits to be combined in the PayPal and Venmo apps. A user can submit checks with a face value of $ 5 to $ 5,000. Multiple checks may be submitted daily for a total value of no more than $ 5,000 per day and $ 15,000 per month.
Despite their continued decline in usage, checks remain an important part of the payments industry ecosystem. According to Federal ReserveIn 2018, 14.5 billion checks totaling $ 25.8 trillion were issued, compared to 18.1 billion checks and $ 29.19 trillion in 2015. This compares with 131.2 billion card payments in 2018 Total value of $ 7.08 trillion made.