Can I Cash a Check Using the PayPal App?

Financial technology has transformed how individuals manage money, enabling mobile check deposits without visiting a physical bank. Mobile check deposit services allow users to conveniently add funds to their accounts using a smartphone or tablet.

Overview of PayPal’s Check Cashing Feature

PayPal offers a “Cash a Check” feature within its mobile application, enabling users to deposit physical checks directly into their PayPal Balance account. This service converts paper checks into digital funds. Users initiate a deposit by photographing the check with their mobile device. The system reviews the images and information to transfer funds.

Key Considerations Before Depositing

Before depositing a check through the PayPal app, users should be aware of specific requirements and limitations. The service is available to eligible users with a verified PayPal account, which might include personal and certain business accounts. Account verification status and the age of the account can influence eligibility.

PayPal accepts common check types such as payroll, government-issued, personal, business, cashier’s, and insurance checks. However, certain types are not accepted, including money orders, temporary checks without pre-printed information, post-dated checks, third-party checks, or checks drawn on foreign banks. Limits apply to check amounts, often up to $2,500 per single check, with daily limits of $5,000 and monthly limits of $15,000. These thresholds can vary based on account activity and verification.

Fees and processing times depend on the chosen speed of funds availability. Standard processing, taking up to 10 days, incurs no fee. For expedited processing, with funds available within minutes, a fee is applied. This fee is a percentage of the check amount, such as 1% for payroll and government checks, and 5% for other accepted check types, with a minimum fee of $5.00. The fee is deducted from the check amount before funds are credited.

Proper endorsement is necessary for a successful mobile deposit. The back of the check must be signed exactly as the payee’s name appears on the front. Below the signature, write “For Mobile Deposit Only” to restrict further negotiation. The check must also contain all standard information:
Payee’s name
Written and numerical amount
Date
Drawer’s signature
Valid routing and account numbers

Step-by-Step Mobile Check Deposit

Depositing a check using the PayPal app involves a sequence of actions. First, open the PayPal app on your mobile device and navigate to the “Cash a Check” option, which is usually found under the “Finances” or “Wallet” section. This may require granting the app permission to access your device’s camera and location services.

Capture clear images of the check. Place the properly endorsed check on a flat, dark surface with good lighting to avoid shadows or glare. The app will guide you to take a photo of the front, ensuring all four corners are visible and text is legible. Then, capture an image of the back, where your endorsement is located.

After successfully capturing the images, you will be prompted to confirm the check amount. Carefully enter the amount to ensure it matches the written and numerical values on the check. The app will then present options for processing speed, allowing you to select either standard or expedited availability, with the associated fee clearly displayed for the expedited choice.

Review all the entered details and the selected processing option before submitting the deposit for review. Once submitted, the system will begin processing the check, which can take anywhere from a few minutes to an hour for approval. Upon approval, the app will typically instruct you to write “VOID” across the front of the physical check and take another photo of the voided check. It is advisable to retain the voided check for a certain period, such as two weeks, before securely destroying it.