PayPal has temporarily suspended check-cashing fees for stimulus checks issued as part of the federal government’s coronavirus relief efforts.
The Palo Alto, California-based online payments platform company announced on Friday (April 24) that fees associated with its cash-a-check app feature will be waived “over the coming weeks” for recipients of federal stimulus paper checks. PayPal did not say when the free period will end.
In its news release, PayPal said the move will allow more customers to access their funds, typically within minutes, from their home, at no cost.
A PayPal spokesman told PYMNTS the standard 1 percent fee will be waived for stimulus and payroll checks. For $1,200 checks, that’s a $12 savings, and $24 for $2,400 payments. In addition, he said the maximum deposit has been doubled to $5,000.
“We know that quick and easy access to stimulus funds is top of mind for many people at the moment, including those receiving paper checks,” PayPal said in an email.
If the check is approved, customers can have the money transferred to a PayPal Cash Plus account in minutes.
John Kunze, Pay Pal’s senior vice president of branded experiences, said the company is committed to providing customers the ability to receive access to their urgently needed stimulus payment as quickly and as securely as possible, especially if they are sheltering in place.
Customers who receive a government-issued coronavirus relief check over the coming weeks can cash it without visiting a physical check-cashing location. They snap a picture of the check within the app, and can get funds quickly and easily. PayPal has posted step-by-step directions for using its check-cashing feature.
“And over the next few weeks, fees associated with cashing a government-issued stimulus check through PayPal cash-a-check service will be waived, helping more people access these much-needed funds as quickly and efficiently as possible, without compromising their health and safety,” Kunze said in a statement.