Saturday , September 25, 2021

PayPal Lines up Early to Help Stimulus Recipients Turn Their Checks Into Ready Cash

With a second round of federal stimulus payments having passed Congress, payments firms are lining up to help recipients speed the funds’ availability. PayPal Holdings Inc., for example, said late Tuesday it will waive the fees for stimulus recipients that it normally charges consumers to cash checks using its app.

But as of Wednesday morning, the Covid-19 relief bill, which calls for payments in various forms totaling $900 billion for consumers and businesses, appeared to be in at least temporary limbo as President Donald Trump said he would oppose the massive package unless payments to individuals were increased from $600 to $2,000, with $4,000 payments to couples. The legislation, which passed Congress earlier this week, follows a similar package of relief measures that took effect in the spring to help businesses and consumers counter the effects of the pandemic.

Eyeing other provisions in the bill that he viewed as “wasteful and unnecessary,” Trump told Congress to “’to send me a suitable bill,” according to news reports.

In the case of PayPal’s offer, the company said persons who use the firm’s cash-a-check feature to move stimulus funds within minutes into their PayPal account will not have to pay the normal 1% fee, with a $5 minimum, the service charges for government and payroll checks. The service, which relies on support from First Century Bank and payments provider Ingo Money Inc., allows PayPal app users to take a picture of a check and send it for review.

PayPal says reviews normally take a few seconds, though in some cases can take three to five minutes, and in “rare circumstances” as much as an hour. Once approved, the funds move into the user’s PayPal Cash Plus account.

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