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.