NY unemployment direct deposit - PayPal works but Chime stopped working? Why?

Yes!! This happened to me last month. NYSDOL quietly updated their approved banking partners and Chime is definitely not on the list anymore. I called about it and they wouldn't give me a clear answer why, just kept saying 'security reasons' and 'fraud prevention measures.' PayPal works fine but takes an extra day compared to my old setup. Something about Chime's routing numbers being flagged in their system.

This is actually part of NYSDOL's new 2025 direct deposit security protocols. They've restricted direct deposits to financial institutions that meet certain verification requirements. Chime, along with several other online-only banks, was removed because they don't have the same fraud prevention infrastructure as traditional banks and verified payment services. Your options now are: - Traditional bank accounts - Credit union accounts - PayPal (must be linked to a verified bank) - Cash App (with verified identity) - Direct deposit debit cards issued through approved partners It's unlikely Chime will be added back unless they implement new security measures NYSDOL requires.

I tried Current last week and got the same error message as with Chime - wouldn't accept the routing number. I think nearly all those fintech banking apps are blocked now.

Changed mine to PayPal too. Seems to work fine, maybe even faster deposits than my old bank tbh

Usually hits my PayPal the next day if I certify before noon on Sunday. But then I have to transfer from PayPal to my regular bank which is another day.

I had this EXACT same problem and it took me TWO WEEKS to talk to a real person at NYSDOL about it!! They kept giving me the runaround saying my routing number was 'invalid' when I KNOW it's right because I use it for everything else! Finally I used Claimyr (claimyr.com) to get through to an agent - they have this service where you can get a callback from unemployment instead of waiting on hold forever. The agent confirmed what others here are saying - they completely removed a bunch of online banks because of fraud concerns. I watched their demo video (https://youtu.be/Rdqa1gKtxuE) and got a call back in about 25 minutes which saved me hours of hold time. The agent explained that Chime specifically had issues with fraudulent claims being deposited into accounts. So yeah, PayPal is your best bet for now unless you want to switch to a traditional bank.

Anyone else notice that PayPal deposits are weirdly inconsistent with timing? Sometimes I get mine in 1 day, sometimes it takes 3-4 days with no explanation.

my cousin works at the unemployment office and she said they had a huge problem with scammers using chime accounts to collect benefits for fake claims. thats why they blocked it. lots of the online banks dont do enough verification i guess

Does anyone know if they're going to start accepting Venmo? That would be more convenient for me than PayPal.

Update: I called NYSDOL this morning and finally got through after trying for 3 days. The agent confirmed that Chime and several other online banks have been permanently removed from their approved deposit institutions list. They said it's due to an increase in fraudulent activities using these platforms. So I'll stick with PayPal for now, even though it takes longer to get my money. Thanks everyone for your help!