Can you deposit a check with venmo

Tried-and-true merges with new digital tech -- Venmo recently announced that it will begin to offer a new check-cashing service, “Cash a Check,” in the Venmo mobile app.

Via TechCrunch.com:

The feature ... 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.

It works much like the portable apps currently offered by major banks: Customers take a picture of their endorsed check and send it to the Venmo app to review, which takes a few seconds (though in certain circumstances the review can take several minutes or even up to an hour before approval).

If and when it is approved, the money is immediately transferred to the customer’s Venmo account.

Unlike most banking apps, where the deposit is free, Venmo will charge a 1% fees for any government or payroll check cashed in the app with a pre-printed signature, with a minimum fee of $5.00. PayPal’s terms state that other checks -- including hand-signed payroll and government checks -- will carry a 5% check-cashing fee, or $5.00 minimum. Venmo will temporarily waive fees on stimulus checks as they roll out over the next couple of weeks.

The service is initially provided by partners First Century Bank, N.A. and Ingo Money, Inc. Ingo Money offers a similar feature to Venmo parent company, PayPal, allowing 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.

Make no mistake, Venmo sees a profitable future with checks. TechCrunch.com notes that he stimulus funds can and will 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.

The "Cash a Check" offering from Venmo reiterates the importance of check as a payment method. While most banks and credit unions have a leg up on Venmo with a mobile RDC feature already available on most banking apps, it does present additional competition for a feature that Forbes.com recognizes for its critical, ongoing importance according to their respondents -- be on the lookout for more on this research in a featured blog! Banks and credit unions must continue their investment in check technology to automate processing to ensure a smooth and consistent customer experience.

Posted in Automated Endorsement Analysis, Bank Branch, Check Image Quality, Check Processing, Financial Industry, Industry News - Check, Mobile Banking, Omnichannel, OrboNation Blog, Payments, RDC & Mobile, Remote Deposit Capture, Retail Banking, Technology, Teller Image Capture, Uncategorized

Select Venmo customers can cash government-issued paper stimulus checks remotely, typically within minutes, free-of-charge using the Venmo app Cash a Check feature

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PayPal Holdings, Inc.

Jan 04, 2021, 09:06 ET

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SAN JOSE, Calif., Jan. 4, 2021 /PRNewswire/ -- Venmo has today announced that it is introducing a new Cash a Check feature in the Venmo app for select customers, enabling Venmo's community to access a quick, easy and secure way to cash paper checks. The new feature will allow select Venmo customers the ability to cash printed, payroll and government checks directly from the Venmo app.

Eligible Venmo customers who may receive a government stimulus paper check in the coming weeks will be able to use this new feature to have their stimulus checks sent directly into their account with Venmo, typically within minutes. All fees associated with the Venmo Cash a Check feature for stimulus funds will be waived for a limited time, to enable a fast, affordable and easy way to access much needed funding, without needing to go to a check-cashing location or wait in lines as people continue to follow social distancing protocols.*

"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. 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."

Using Venmo's Cash a Check feature from the safety of your home
The Venmo Cash a Check feature allows select customers to cash checks and have them sent to a Venmo account. Using the fast-access Cash a Check feature is simple – eligible customers in the US can take a picture of the check they want to cash and send it for review using the Venmo app on a mobile device, rather than visiting a physical check-cashing location. Reviewing a check for approval usually takes a few seconds, although it can take 3-5 minutes and in rare circumstances, up to an hour to verify enough check information to make an approval decision. 

If the check is approved, the money will be transferred to a Venmo account within minutes, with the fees associated with instant disbursement waived for all government-issued stimulus checks processed within the Venmo app.  Fees will be waived for a limited time only. Checks which aren't approved will not be processed and funds will not be received through Venmo. For best performance, customers should download the latest version of the Venmo app on iOS or Android and have the latest operating system on their mobile device.