Venmo Direct Deposit

Venmo Direct Deposit Rating: 4,8/5 3655 reviews

Venmo, PayPal owned peer-to-peer payment service recently added a new feature called Cash a Check for both its Android and iOS apps. This new feature allows select customers in the U.S. to take a snap of a check, send it for review using the Venmo app on a mobile device, and deposit the fund into a Venmo account instead of visiting a physical check-cashing location or worrying about following social distancing measures.

Venmo is a digital wallet that makes money easier for everyone from students to small businesses. More than 60 million people use the Venmo app for fast, safe, social payments. Once you start an instant transfer in the Venmo app, you’ll see a green check mark as confirmation that the transfer has begun. When the transfer completes, you’ll get another in-app notification. If the transfer. Thinking of switching my work direct deposit from my bank to my venmo. Has anybody had experience with this? I’m a little nervous since there’s no concrete bank i can. To set up Direct Deposit, please follow the steps below: In your Venmo app, tap the '☰' icon, and then click on Settings → Direct Deposit Tap Show Account Number to get your Venmo account info along with the routing number that appears on the screen Copy both numbers and use them to fill out your employer’s Direct Deposit.

Venmo's parent company, Paypal already has a similar feature that allows users to cash checks in the PayPal app. The cashing service in both the app is provided by partners First Century Bank and Ingo Money.

The feature can be used to cash any printed, payroll, and U.S. government checks, including the new government-issued stimulus checks giving people quick and easy access to their money, especially for people who are receiving paper checks and would have to physically go to a cashing location.

The U.S. government has been sending stimulus checks to most Americans, in response to the COVID-19 induced economic crisis that forced millions of people out of work and putting many in serious financial hardships.

Venmo Direct Deposit Information

In the midst of nationwide lockdown and social distancing protocols, fintech companies have come to the rescue by providing convenient, safe, and reliable payment methods to people for sending money to friends and family who are in dire need of financial support. The use of contactless payments has been on the rise amid the virus scare. The pandemic has indeed accelerated the use of fintech solutions.

Cash Your Stimulus Checks with Venmo's Cash A Check Feature from the Safety of your Home at Zero Cost

Venmo is waiving all fees for cashing stimulus checks deposits for a limited time to provide affordable access to the much-needed fund so that people can use it to pay for things they need the most.

Normally, as per PayPal's terms and conditions, the fees charged for cashing a check is 1% (a $5 minimum) for payroll or government checks with pre-printed signatures and 5% for hand-signed checks, with a minimum of $5.


Darrell Esch, Venmo SVP and GM, talking about the new service said the company is continuously looking for new ways for the community to have easier access and manage their money, especially as people continue to experience financial hardships amidst the global pandemic.


How to Use the Venmo app for Cashing Stimulus Checks?

To use the Cash a Check feature, you'll need a Venmo account, a Venmo debit, or an active direct deposit on the account and a verified email address. The feature also requires location services to be active.

Venmo direct deposit form

Here are the steps to use the Venmo app for cashing stimulus checks:

  • Download the Venmo app if you haven't and create an account first
  • Tap on the side menu panel
  • Choose Settings
  • Scroll down and under the Buying section, tap Cash a Check
  • Tap Get Started
  • Read and accept the terms and privacy policy
  • Enter the check amount
  • Follow the onscreen prompts to use the app to take a photo of your check
  • Tap the checkmark to proceed

To verify the check, Venmo will then conduct a review before disbursing the fund. The review process only takes a few seconds to 3-5 minutes. In rare circumstances, it may take an hour to make the approval decision.

Once the check is approved, the money is immediately transferred to the customer's Venmo account. If the check isn't approved, it is not processed, and the funds aren't sent to the account.

Tap on the Check Activity totrack your transactions.You'll find it after tapping the setting icon on the screen where you entered the check's amount.

To access the new Cash a Check feature, you will have to download the latest version of the Venmo app (both on iOS or Android) and your system should be running the latest operating system on your mobile device.


The check-cashing feature adds to Venmo's expanding banking services, although it is far from being an alternative to an online banking app.

It also launched its first credit card to eligible users in the U.S. each having its own unique QR code and RFID chip and cashback rewards.

An important benefit of the new feature is that the influx of stimulus payments can help increase Venmo's profit beyond the fees it charges. Having access to their stimulus check deposits and payroll in their Venmo account, people may use the money for online transactions or use their Venmo debit card to do the same. Venmo can then earn revenue via the transaction fees.

In less than two years, there has been a significant increase in Venmo users, now standing at over 50 million. Venmo's user base is largely millennials under 35 years of age.

PayPal forecast Venmo's revenue to approach $900 million in 2021 owing to investments in new capabilities and reach profitability in 2022.

There are negative consequences with collecting rental income through Venmo, PayPal, Zelle, and direct deposit. I hope you never experience these problems, but I want to educate you on worst case scenarios.

It is important that you treat your rental property management like any other business.

PayPal, Venmo, and Zelle are similar to direct deposit. They allow the tenant to pay at will, which gives the tenant more control. When you have a problematic tenant, you do not want them to be in control.

Here are the major problems that arise when you allow the tenant to be in control:

  1. Inability to evict non-paying tenants
    If you allow the tenant to pay via their own mechanism, then they can deposit partial rent into your account. Unprofessional investors and managers allows this to happen and have a difficult time evicting tenants. By accepting partial rent, you can forego your ability to evict them.
  2. Clawbacks on the rent paid
    If a tenant uses a consumer-friendly method to deposit rent, the consumer-friendly vendor typically takes the side of the customer (i.e. the tenant) in disputes. Therefore, the money can be retracted if the tenant disputes the rent. This typically happens after they move out, especially if they don't agree with your security deposit refund. A reasonable tenant suddenly becomes unreasonable.
  3. Lease gets automatically renewed
    If you do not want to renew a lease, you set yourself up for a difficult court case when you allow the tenant to deposit money at will. By allowing them to use Venmo, PayPal, or direct deposit, you may have already “accepted” next month's rent and are unable to turn over the property sooner.

Venmo Direct Deposit Form

Now, let's take a deeper dive into each of these three online rent collection methods and real-life examples of what can go wrong.

The problem with direct deposit

I heard a case the other day, which is too unfortunate not to share. An owner sent a 3 day notice to pay rent or quit. After 3 days, the tenant still did not pay. The owner hired an expensive lawyer to take the tenant to court. One day before the court case, the tenant deposited 25% of the total balance due directly into the owner’s bank account (the tenant had the owner’s routing and account number). The owner could not evict the tenant because “partial rent was accepted.” The owner lost the court case and the tenant is living in the property — at a deeply discounted price. The owner not only does not have the full rent, but also had to foot the bill for the lawyer.

Venmo direct deposit bonus

The problem with PayPal

First, you leave it up to the tenant to determine the type of payment. If the tenant selects rent as a 'goods and services' transaction, then you can incur fees. PayPal also does not make it as easy to automate your process, systematizing the late fees, allowing control over payments, and showing you are professional in the rental industry.

Venmo direct deposit limit

Second, there is a money back guarantee with PayPal. If the customer representative 'feels' you have defrauded the customer, then they will give the money back to the customer. Imagine if a tenant calls to argue about the security deposit refund. You are leaving it up to a PayPal representative (who has no property management experience) to determine whether or not to refund the tenant.

The problem with Venmo

It’s free — what’s the catch? Nothing in life is free and cheap alternatives cost you in the end. This is a consumer app. Anyone can pay anyone, and the amount is automatically accepted. The problem is identical to the situation described with accepting direct deposit.

In addition, the tenant can cancel their Venmo transaction before it reaches your bank. As this Money article describes, Venmo should not be used for business transactions. The payment platform was built as a convenient way to pay people you know personally.

The problem with Zelle

Zelle may be a better option than PayPal and Venmo (since it goes direct to your bank account), but anyone can pay you and you don't want to accept partial payments from tenants. In addition, banks that are not partnered with Zelle have limits on the amount of money that can be sent, which means you will be accepting partial payments from some tenants.

For example, at the biggest U.S. banks, Zelle Pay daily and monthly limits tend to be around $1,000 per day and at least $5,000 per month, respectively.

One bad tenant can destroy your annual cash flow. Do not let that happen to you. Your only source of income is rent. You do not want to set up your rent collection process to allow the tenant complete control over payments.

Venmo Direct Deposit Form

Tenants refusing your payment method

During initial interactions with a tenant, he/she may refuse to use your preferred method of rent collection. This type of tenant has always been a red flag to me. They are looking for an unprofessional landlord or manager, where they can make excuses for not paying according to the lease agreement.

It is important that you have a solid tenant screening process and an amicable tenant who wants to work with you. You also want to make sure to work with them, by offering one offline method and one online method (some States require an offline form of payment).

The best ways to collect rent

There is a reason professional property managers and real estate investors request rent through only certain methods. The best methods are a money order (for the full amount due) or an online property management system. If you use an online system, make sure it has the following features:

  1. Automatic payment scheduling — monthly alerts will reduce the risk of past due payments and help track payments
  2. Ability to accept only full payments — reduces the risk of partial payment that prevent moving forward with an eviction in many States
  3. Automatic late fees — reduces the risk of late payments by always sending out late fee notices
  4. Ability to cancel future payments — if you are starting an eviction, there should be a process in place to cancel the remaining balance of the payment

My top concern with new landlords and real estate investors is that they don’t treat their rentals like a business. They use existing consumer tools that amplify the risk associated with managing rental properties. Have you ever seen a store clerk tell you that you can pay via Venmo or go to your bank to transfer money into their account? No. There is a reason for this. And, rental properties have even more rules and regulations in the court of law.

Venmo and PayPal are great ways to split dinner bills with friends. Zelle is a great way to send money to your friends for a travel experience. But, they are not great ways to set up a professional and sustaining rental business.

Please enable JavaScript to view the comments powered by Disqus.

Direct Deposit Authorization Form

Finding and Selecting the Best Tenant

Venmo Direct Deposit Not Working

For a $2,000 monthly rental: You lose $1,000 if you have your rental on the market for 15 additional days. You lose $1,000+ for evictions. Learn how to quickly find and select a qualified tenant while following the law.