PayPal shocked its users with the end of its popular mobile check capture feature on the PayPal app.

Garry Knight / flickr |

With more than 148 million active registered accounts in 203 markets, PayPal users around the world were impacted by the choice to take away one of the most convenient services they offered.

Even more perplexing is the fact that eBay Inc. which once owned PayPal, supported the controversial choice of pulling the plug on a feature eBay shop owners and businesses depend on to funnel revenue into their businesses.

Now, these individuals have been forced to figure out a new way to deposit checks into their PayPal accounts. In case you’re wondering why users don’t use mobile check deposit with their own banks, many banks don’t yet offer this feature, or it’s quite possible that these users simply live in a rural area and can’t easily access a branch.

Two PayPal mobile alternatives

Though PayPal appears to have been the easiest way to directly deposit checks, there are alternative methods of getting mobile deposit that come with very few strings attached. For those who strictly want to do all banking remotely, here are two alternatives to replace PayPal’s mobile remote deposit capture.

1. A prepaid card that accepts mobile deposits: A reloadable prepaid card is one way to get mobile check deposit without needing to set up a bank account.

American Express Bluebird for instance, is a prepaid card that has no minimum balance requirements and offers free mobile check deposit through their Bluebird Mobile App for iPhone or Android. Additionally, Bluebird has no monthly or annual fees, bill pay fees, overdraft fees, inactivity fees, foreign exchange fees, or card replacement fees.

What makes this card so special is that with no inactivity fee and no monthly fee, you won’t be charged if you decide not to use your card. However, withdrawals at non-MoneyPass ATMs will cost you $2 and an ATM network surcharge. Bluebird members who don’t have direct deposit connected into their card pay a $2 fee, even at MoneyPass ATMs.

2. An online or mobile bank: Online banks do a lot to sweeten the deal for their customers. Many, such as Ally Bank, reimburse customers for any and all ATM surcharges and fees, which means they get to withdraw money from whatever bank or ATM is most convenient for them.

Also, because these banks don’t have to spend money on physical upkeep, they can offer customers high-yield checking and savings accounts and better rates on loans. Opening an account is usually free, and last of all, online banks dedicate funds to developing their mobile banking platforms.

MyBankTracker rates banks and allows readers to rate them as well. One popular online bank known for their high-yield rates is Ally Bank. Customers who have a daily balance of $15,000 or more get a 0.60 annual percentage yield, and those with daily balances under $15,000 get a 0.10 annual percentage yield. Their interest checking has no monthly maintenance fees and doesn’t require a minimum balance to open.

Another online bank that offers great value to their customers is Bank of Internet. This bank doesn’t have monthly maintenance fees or a minimum monthly balance, as well as unlimited ATM reimbursements, but does require a minimum of $100 to open. However, in return, cardholders receive 1.25 percent APY on all balances under $150,000.

PayPal’s reasoning behind the move

A representative of PayPal confirmed that there is no direct method of depositing checks into PayPal accounts directly any longer. “We don’t have any options of depositing checks through our system at all,” the representative said.

“It would have to go to a local bank or whatever party you decide to use for check cashing. However, you can always add money from the bank account once that bank has been deposited via your bank. That would be the only route to get those funds into your account.”

According to one study, mobile remote deposit capture is the “most sought-after mobile banking feature” among consumers. However, according to PayPal, the service was hindering their growth.

“As far the concern of the removal of that, the information that we were given is the company decided to focus more on digital payment which we’re known for and do quite well,” she stated. “They found that the check feature was not something that was allowing us to grow in the digital world so they kind of decided we would focus in a different direction.”

The losses felt as a result

In considering the demographic most impacted, a visit to an online forum easily illustrates the untold story of many individuals who rely on PayPal’s easily accessible financial services for their needs, especially those who dislike banking. On eBay in particular, shop owners receive a wide range of personalities and payment methods, such as the older generation that may prefer to use traditional payment, like checks, to pay for purchases instead of credit cards or PayPal.

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Mobility may also play a role in the desire to bank remotely. However, mobile remote deposit capture is offered by many physical brick-and-mortar banks now as well, so the degree to which a customer would need to visit a bank may be minimal. In fact, checking accounts that don’t charge a monthly maintenance fee and don’t require a minimum balance each month may be an ideal solution.

Do you have any alternatives to share? Leave your comments down below, or comment us on Facebook!

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  • Steven

    I have found Paypal impossible to use – therefore not worth the effort to use. I can prove that – go to: it shows an example of when paypal can go wrong, their system is so automated that when problems appear their system can ignore you, make it impossible to communicate with them.

    Near 8 years ago when I bought something from them, they told me to file a claim to get all my money back, they found this person that I bought from on ebay to be against their policies, that is right, all my money back, yet only gave me $200 regardless of how much I spent on it, they promised on the phone to get me the complete amount a short time later, yet keep calling they promised they would until when I called later to check they ignore the whole thing, when promised. They would promise its safe, a limit of $2000 yet in microscopic print $200, yet in big letters promise its safe, a limit of $2000.They promise things they never do.

    Now its safe, its all your money back that was spent, if you submit a claim – yet do they really do it, I submitted a claim I received my money back, if I opened a Paypal account again, yet its impossible to use – they call it limited access, yet no way to use it, the links in my account go no where, can not answer their requests. Customer Service is automated too, they ask me Seller Questions – I am a Buyer therefore impossible to use, If I use Contact Us they go off the subject therefore impossible. I try the Phone yet must have a password. last time it was 8 years, now its 8 month ago and they keep sending me email for me to answer their requests, for me to gain the money, they do not accept replies to email they send – therefore I used Contact Us at Paypal, yet their email wrote, you did not tell us your email address, in the same email they sent me, they knew it, I received it.

    • benny


    • thenet95

      lol impossible to use? even a little kid can use paypal and have no problems. Typical newbie

      • Steven

        Your paranoid if you think everything is so simple – I can prove it

        • thenet95

          lol.. Paranoid you seem to be paranoid and dumb. Yes very simple to use.

          • Steven

            Its easy to write several vain meaningless words – it take a skilled person to know and understand what they are and what a psychopath is.

          • Steven

            Yes I know how sweet you are and kind and caring you are

  • Steven

    Would not make a bit of difference. Too many people know what is happening at Paypal – I can show thousands of people having problems with Paypal. They need not be new to Paypal. if you think they have psychological problems – some do. Yet many, many can not be hushed up – so simply as a comment about how dumb you think they are – that easily. Because they know the truth or have an opinion:

    • thenet95

      lol… Man you sure have a problem. Who fricken cares and no I didn’t click useless link. lol . PayPal works great. Just love how PayPal simple process works great. Best part is seeing money flow while I sleep. lol…

      • Steven

        Yes I know how sweet you are and kind and caring you and perfect the world is – everything simple and easy and fortunately nothing ever fails.

        • thenet95

          Yes I am sweet and caring and seeing money come everyday 😂

  • Steven

    I can prove how sweet you are