PayPal Holding Inc. (NASDAQ:PYPL) has announced that it is waiving check-cashing fees related to the cash-a-check feature for government stimulus check recipients. This comes following the passage of the second COVID-19 relief bill that included stimulus payment for people. The waiver will allow customers to access their funds within minutes from the comfort of their homes without an extra charge.
Second stimulus payments through Direct Deposit feature
Equally, users that used the Venmo Direct Deposit feature or PayPal to receive stimulus payments in the first round early this year will automatically receive payments via Venmo or PayPal if they qualify. According to the IRS, details on file for Direct Deposit will be used for the second round of stimulus payments.
PayPal SVP Branded Experiences, John Kunze said that in the first round of stimulus payments made in April and May there was a huge number of customers that turned to PayPal to receive their payments quickly and securely. Most used the PayPal cash-a-check feature or Direct Deposit. Kunze said that with the second round of payments expected soon, those that will receive government paper stimulus checks can cash them without having to visit a physical check-cashing point. All one has to do is to take a photo of the check within the app and they can receive their funds instantly at no charges.
Customers to cash checks instantly
Also, PayPal is waving all charges related to immediate funds access for the government issued paper stimulus checks that will be processed with the PayPal App through the cash-a-check feature. The feature allows customers to receive their funds instantly after cashing and have the money sent to their Paypal cash plus account. For those that don’t have an account, they can apply for the PayPal Cash Plus account online or within the app. Check review only takes a few minutes but in rare circumstances, it can take up to one hour before getting approved. For checks that will not receive approval, PayPay will not process them and customers will not receive their money through PayPal.