In a world of instant mobile transactions, PayPal still has its place amongst the likes of CashApp, Venmo and such. It is one of the Easy Instant Mobile Check Deposit Apps I use. Besides sending and receiving money, you can cash checks with PayPal. This is as long as you have an account.
So, how does PayPal instant check deposit work?
The service is available to PayPal users for 24 hours and 7 days a week. All you need is to have the PayPal app in order to be able to upload your check to PayPal. There is a Cash a Check feature on the app, which is easy to use once you log into the app.
Below is an instruction of how you can deposit a check using PayPal app.
- Open up the PayPal app.
- Tap on Wallet on the bottom of the app.
- Scroll down until you see Explore more. Tap on Cash a check. It will ask for access to phone’s camera and location. Select the permissions.
- Tap on Continue to proceed.
- PayPal will show you a series of terms and conditions. After you have accepted these terms and conditions, you will complete your automated pre-enrollment. This includes your date of birth, social security number and phone number.
- Tap Enroll.
- Then, follow the instructions and upload your check to PayPal.
- Select when you want the money. It could be available instantly or not. Be sure to endorse your check, before you take snap of both sides of the check.
Unendorsed checks will not deposit. This is because you have not given PayPal permission to collect and deposit check fund on your behalf. To avoid issues with processing, be sure to make sure all information on the check are correct before you upload.
PayPal Check Deposit Limit
Just like other check cashing apps, there is a PayPal check cashing limit. Your check must be between $5 to $2500. This is per check deposited. How does this affect you?
Well, the PayPal check limit is $5000 weekly and $15,000 monthly. These are the maximum amount anyone can deposit within a week or month respectively. The limits are not bad, when you consider PayPal is not a traditional bank.
How Much Does PayPal Charge To Cash A Check?
PayPal charges a minimum of $5 for instant check cashing. However, there is a free option which may come at the cost of your patience. This is because the free option takes about 10 business days to release your fund to you.
Additionally, the PayPal check deposit fee depends on the kind of checks you are trying to deposit. For paychecks and government checks, the fee is 1% of your check value plus a minimum of $5. Any other eligible check will have a 5% with the $5 minimum fee.
I do not know about you, but I feel like the fee to cash a check on PayPal is expensive. You can deposit a check on CashApp for less fee, time and more check amount. But, that is just me. I appreciate convenience when it comes to check deposits.
How Long Does It Take For A Check To Clear In PayPal?
PayPal deposits checks instantly, only when you select the instant option during your check deposit. It will cost you a minimum of $5. Otherwise, it will take PayPal about 10 business days to clear your check and release your funds.
In case of issues with processing, reach out to PayPal customer support. Issues with delayed fund release may result, when your check is not endorsed. I highly recommend you endorse a check for mobile deposit at PayPal before you deposit it.
Finally, be sure the data on your check is properly written. You can read how to write a check to someone to see what a good check is supposed to look like. If it is good, then make sure you take pictures of your check on a dark background. Make sure you capture all the edges of your check. Any blurred picture will not be approved.
What Checks Will PayPal Cash?
Generally, PayPal will cash checks made out to you. By you, I mean the person about to deposit a check on a PayPal account he or she owns. The account has to be yours; this is why PayPal asks for security information like your social security number, date of birth and number for identification purposes.
Besides this fact, PayPal will not cash third party checks. But, PayPal will cash any of the following checks below:
- Payroll and government checks with a pre-printed signature
- Business checks
- Two-party personal checks
- Handwritten payroll checks. PayPal cashes handwritten checks as long as it is legitimately made to you, endorsed and withdrawn from US bank.
- Insurance checks
- Attorney checks
- Cashier’s checks
- Money orders
To conclude, the check has to be made out to you. You have to endorse it. Also, the check should be a check which can be withdrawn from an American financial institution. As long as your check meets these requirements, cashing check with PayPal will go smoothly.
Why Won’t PayPal Cash My Check?
Here are the following reasons why PayPal will deny your check.
1. You are trying to cash a third Party Check
PayPal does not cash third party checks. It will only cash American bank checks made directly to you, which you have endorsed. Any ineligible check will not be approved for deposit.
2. Your check fund exceeds maximum deposit
As previously mentioned, PayPal can cash up to $2500 per check. The most you can deposit in one week is $5000, while your monthly PayPal check limit is $15,000. Anything above these limits will not be approved.
3. You tried to deposit a bad check
If you are trying to deposit a bad check, PayPal will not approve it. Bad checks include fake checks, checks already cashed or expired checks. You can read what you need to know about verifying a check to avoid such a situation.
4. You deposited an unendorsed Check
In the United States of America, you have to endorse your check before it is accepted by a financial institution or service. This limits the chances of a check fraud, therefore preventing consequences of depositing a bad check. To endorse your check, you have to sign the back of the check.
If you had not signed on it prior to deposit, PayPal will not cash your check. Endorsing a check signifies you are authorized to cash it and you authorize the bank to do it on your behalf. The absence of an endorsement means you have not authorized PayPal to do it.
On the whole, PayPal may deposit checks immediately or not. It all depends on the time frame you select, when you try to cash check online at PayPal. If you stick to its terms and conditions, you will not encounter issues during the entire process.
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