Millions of Americans have already received their second stimulus check, and millions more will get it soon, either as a direct deposit or paper check. If you expect to be getting your coronavirus stimulus check in paper form and are worried about cashing it, you don’t need to be – the mobile app Venmo has you covered. Venmo, earlier this week, introduced a new check-cashing service, called “Cash a Check.”
Venmo's Cash a Check: what is it?
Venmo’s new feature would enable users to cash a printed payroll, as well as government check, using their smartphones. This feature would allow Venmo users who get the stimulus check in paper form, to send it directly to their account using the app.
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All users need to do is to take a picture of the check they wish to cash, and then send it to the Venmo team for review using the app. The review process usually takes a few seconds, but in some cases, the process could take up to an hour, the company says. In case the review process rejects a check, it won’t be processed and the funds won’t be released to the user through Venmo.
Venmo’s Cash a Check feature is very useful, especially amid the coronavirus pandemic when one needs to minimize physical contact. Also, the feature is useful for the elderly and those with health issues as it eliminates the need to personally visit a check-cashing location and wait in line.
“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," the company says.
To make the feature even more appealing, Venmo is also waiving any fees for using the feature to cash the government-issued checks. However, the waiver is only for a limited time, and after that, the app would charge 1% to cash any government or payroll check with a pre-printed signature. For hand-signed payroll and government checks, the app would charge a 5% check cashing fee.
To use Venmo’s feature a user needs to have either Direct Deposit or a Venmo Debit Card. Also, they need to have a verified email address, as well as location services enabled on their phone. Earlier this week, the company said it has started rolling out the feature to the iOS and Android users in the U.S. For the best performance possible, the company recommends updating to the latest version of its mobile app.
Allowing users to cash their stimulus check, even without fees, could eventually help boost Venmo’s bottom line. Once Venmo users cash their stimulus check, they may then use those funds to make purchases with their Venmo debit card. This, in turn, would help the mobile app to boost its revenue.