Venmo Adds New Check Cashing Feature ‘Cash A Check’

Venmo has added a new checking cashing feature titled ‘Cash A Check’. Currently this feature is being rolled out to select users as part of a trial. Eventually this feature will involve fees (1% for checks with a pre printed signature and 5% for a hand written signature. Minimum fee will be $5), but currently these fees are waived on stimulus checks for a limited time. To be eligible for this feature users need to have done the following:

  • Receive a direct deposit or have a Venmo debit card
  • Location services turned on
  • Verified e-mail address

We’ve seen other fintechs reach into this sort of market with Cash App offering loans with an APR of 60%. PayPal has the same fee structure as this new offering from Venmo as well for cashing a check.

 

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WGU
WGU (@guest_1122629)
January 5, 2021 17:55

Stay AWAY from anything Paypal related!

Esquiar
Esquiar (@guest_1122503)
January 5, 2021 15:19

Congrats on getting into the payday loan biz Venmo. The only people that will use this are check fraudsters.

calwatch
calwatch (@guest_1122451)
January 5, 2021 13:54

If you’re technically skilled enough to use Venmo you should be able to open a bank account with Chime, SoFi, T-Mobile Money, or any of the others, all of which are real banks.

P
P (@guest_1122442)
January 5, 2021 13:33

What a stinking garbage company Paypal is. Even Walmart is much cheaper when cashing a check and most of the people I know with no bank accounts just cash their checks there.

Dheeraj
Dheeraj (@guest_1122356)
January 5, 2021 11:20

Disgusting

JW
JW (@guest_1122307)
January 5, 2021 10:18

5%, $5 min to cash a check ??????
Clearly this business has risks, and fees are needed to mitigate that risk, but what’s the benefit to the user for this over mobile deposit into a fee-free bank account (chime, capital one, soFi)???

Jon
Jon (@guest_1122308)
January 5, 2021 10:19
  JW

Probably just to serve the underbanked who pay money to get their checks cashed physically at other places like pawn shops

Michael Scott Paper Company
Michael Scott Paper Company (@guest_1122315)
January 5, 2021 10:26

With the availability of online banks are there really people that can’t get a bank account these days? I don’t mean to tone death but the problem seems not to be availability but people knowing their options.

Parkerthon
Parkerthon (@guest_1122323)
January 5, 2021 10:32

That’s crazy anyone would pay that much and seems like Venmo is praying upon people just like these high interest loan places. Frankly I don’t understand how the underbanked exist. It takes damn near nothing to open a checking account. Everything is automated now so discrimination shouldn’t be a big factor. I’m thinking the underbanked are mostly undocumented residents and people on the Chex blacklist. To be fair, that’s probably a significant number of people in the United States.

Bob
Bob (@guest_1122335)
January 5, 2021 10:47

Many people don’t trust banks and are happy to pay for check cashing.

But not sure why anyone would trust PP more than a bank.

Swastik Agrawals.
Swastik Agrawals. (@guest_1122399)
January 5, 2021 12:38

Banks give people free money as long as you read the terms and conditions. I don’t understand not trusting banks, especially with FDIC and CFPB

Jack Jones
Jack Jones (@guest_1122419)
January 5, 2021 12:55

That is why we need postal banking for the poor. Obviously, the US Postal Service would be the most trustworthy organization for our money.

Geo
Geo (@guest_1122497)
January 5, 2021 15:10

“postal banking for the poor”
By government standards, this organization is doing great. Better on-time standards than the VA, better losses than SSA, hell, maybe we should set up “Government Health Clinics & Pharmacies by Postal Services” – let them run that area too! Postal Healthcare.

Michael Scott Paper Company
Michael Scott Paper Company (@guest_1122336)
January 5, 2021 10:49

There is a bank now specifically for the undocumented. But people financially illiterate people will continue to use services like this because they “trust” the Venmo name. I actually know someone IRL that uses paypal as their savings account. I had to scoop my jaw off the ground.

bruvv
bruvv (@guest_1122343)
January 5, 2021 11:00

If ya burn EWS/Chex with some dumb scams or fraud then yea, you’ll be stuck with those online banks for a while

Most people don’t know better

Geo
Geo (@guest_1122492)
January 5, 2021 15:04

>>Most people don’t know better
Please tell me that’s a joke.
I’d hope most people know better than to do “dumb scams or fraud” that would burn their Chex. That’s just excuse-making.
Not trusting the banks…. I get that. Big, big difference.

Ross
Ross (@guest_1122729)
January 5, 2021 20:18

I would wager most people have never heard of Chex. The first time I opened an account for a bonus and mentioned it to friends or coworkers they thought I was weird for having more than one bank account

Hadah
Hadah (@guest_1122344)
January 5, 2021 11:03
  JW

Doubt venom is trying to target readers of this website with this feature. Considering they have options for receiving money instantly for as few as opposed to waiting forever(2-3 days). It’s probably just aiming to get a quick buck out of the lazy and careless.

Matt
Matt (@guest_1122305)
January 5, 2021 10:16

Why on earth would anyone pay $5 to cash a check

Midnight
Midnight (@guest_1122304)
January 5, 2021 10:15

Another money grab feature….