Venmo has just introduced a check cashing feature in its popular mobile payment service and, in a magnanimous move, it is also temporaryapplying the standard 1% tax to anyone who collects a checking the covid stimulus. TechCrunch reports that the new Venmo Cash a Check service is launched to select iOS and Android users starting this morning, and those users can now use the Venmo app to cash out the printed paymentroll and US government checks – including covid, duty-free stimulus checks.
Eligible users must have an active Venmo account in good standing. Direct deposit or Venmo debit card will also need to be activated, as well as location services and a verified email address. Full details on how to cash a check through Venmo are provided here. This is useful if your bank charges a cash check fee or if you do not have a bank account. (Venmo direct deposit requires a link to an account at a financial institution, but Venmo debit card does not.)
The Venmo check cashing function works in the same way as using a mobile deposit through a banking application. Sign the back of the check, take a picture of the front and back, and send. Venmo says the check approval process, which is handled by First Century Bank and Ingo Money, only takes a few seconds, although it can take more than 3-5 minutes in some cases. In rare cases, it can last up to an hour. (Ingo Money is the same financial institution that manages check deposits for a similar feature PayPal application, Venmo’s parent company.)
If you haven’t set up your first covid incentive payment to go straight into your Venmo account, unfortunately, there’s no way to change it for your second payment. The federal government is not reopening the direct deposit portal, Venmo notes Frequently asked questions page. But if you expect to receive a paper check, which the IRS began sending on Wednesday, December 30, the new Cash a Check feature is a solution to the problem.
Vaguely, Venmo does not offer a difficult end date for its covid, duty-free collection offer. Into the fine imprint, the company says, “The offer ends after reaching the $ 400,000 ceiling.” It is unclear whether this is a banking intuition ceiling for these transactions or a government-mandated ceiling, but Venmo is clearly a limited time offer. If you already have a $ 600 check in hand and want to keep those $ 6 processing fees, do it now.
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If you have not yet paid the incentive, go to Get my payment portal on the IRS website and read a book, crochet a sweater or bake a lasagna while you wait. The website is currently overloaded with requests and it may take some time to open the portal, but once you are there, it will tell you when the check has been or will be sent.