For many people, the traditional banking system doesn’t meet their needs. Whether you don’t have a bank account, need access to funds outside regular banking hours, or are looking for a more convenient way to cash a check, non-bank check cashing options provide an essential alternative. These services can help you access your money quickly, but it’s important to understand the costs, limitations, and how they work. In this article, we explore the most common non-bank check cashing options and the key considerations when using them.
What is Non-Bank Check Cashing?
Non-bank check cashing refers to services offered outside of traditional financial institutions that allow individuals to cash various types of checks, including payroll checks, government checks, and personal checks. Unlike banks and credit unions, non-bank check cashing options which typically require you to have an account with them to cash a check, non-bank check cashing services allow anyone—whether or not you have an account with them—to cash checks for a fee. These services can be found at retail locations, check-cashing stores, and even through mobile apps.
Popular Non-Bank Check Cashing Options
1. Retail Stores
Many large retail chains, including grocery stores and convenience stores, offer check-cashing services. These locations are convenient, often open late or 24/7, and don’t require you to have a bank account.
- Walmart: Walmart’s MoneyCenter offers check-cashing services for a variety of checks, including payroll, government, and tax refund checks. Fees vary depending on the type of check and amount being cashed, but typically range from $4 to $8. Walmart also offers a flat fee of around $4 for payroll checks up to $1,000, with higher fees for larger checks.
- CVS and Rite Aid: These pharmacy chains also provide check-cashing services, usually for government or payroll checks. The fees tend to be a little higher compared to larger retailers like Walmart, and limits may apply on the size of the check.
- Grocery Stores: Many large supermarket chains such as Kroger, Safeway, and Publix also offer check-cashing services. Fees can range from a few dollars to a small percentage of the check amount, with varying limits depending on the store.
2. Check-Cashing Stores
Dedicated check-cashing businesses are another common non-bank option for cashing checks. These stores, like ACE Cash Express, Moneytree, and Check Into Cash, specialize in providing a wide range of financial services, including check cashing.
- Fees: These stores charge fees based on a percentage of the check amount. The fee can vary significantly based on the type of check being cashed (payroll checks, government checks, or personal checks), but it typically ranges from 1% to 10% of the check’s value.
- Availability: Check-cashing stores are often open longer hours than traditional banks, with some locations even open on weekends and holidays. They can be a convenient option for people who need to cash checks after regular banking hours.
- Additional Services: In addition to check cashing, these stores often offer services like money transfers, bill payments, prepaid debit cards, and payday loans. While these services can be convenient, they may come with high fees, so it’s important to read the fine print.
3. Prepaid Debit Cards
Some financial services and prepaid debit card companies allow you to cash checks directly onto your card. This can be a good option if you want to avoid the hassle of physical check-cashing locations and want to have access to funds immediately.
- GreenDot: GreenDot offers mobile check deposit services where you can load funds directly onto your prepaid card. You can also use their network of retail locations to cash checks at participating stores. The fees for check cashing or check deposits can range from $5 to $7, depending on the amount.
- NetSpend: NetSpend provides similar services, where you can cash checks directly onto your NetSpend prepaid card. The mobile check deposit feature allows you to snap a picture of your check and deposit it remotely, often with fees based on the check amount and whether you want instant access to funds.
- Chime: While Chime doesn’t offer check cashing directly, you can use their mobile app to deposit checks via a photo. Funds are typically available within 1-2 business days, and the service is free for checks from government or payroll providers.
4. Money Transfer Services
Some money transfer services, like Western Union or MoneyGram, allow you to cash checks at their locations. These services can be especially useful for cashing checks in areas where traditional banks or check-cashing stores are not available.
- Western Union: Western Union’s check-cashing service allows customers to cash a variety of checks, including personal, payroll, and government checks. Fees are typically a percentage of the check amount, and services are available at many Western Union locations around the world.
- MoneyGram: Similar to Western Union, MoneyGram offers check-cashing services at their locations. They specialize in quick and convenient cashing options and often have lower fees for government or payroll checks.
5. Mobile Check Cashing Apps
In the digital age, mobile check cashing apps provide a convenient way to deposit checks directly into your account or onto a prepaid card without needing to visit a physical location. These apps allow you to take a photo of the front and back of your check and submit it for deposit. Some apps even allow for instant or same-day deposits, for an additional fee.
- Ingo Money: Ingo Money is a popular mobile check-cashing app that allows you to cash a variety of checks, including personal, payroll, government, and tax refund checks. The app charges a fee for instant deposits, ranging from 1% to 5% of the check amount, depending on the type of check.
- PayPal: PayPal’s mobile app allows you to deposit checks using your smartphone. There’s no fee for standard processing, but if you want to access the funds instantly, there’s a fee of up to 1% of the check amount.
- Chime: Chime offers mobile check deposit for payroll and government checks. While the standard deposit may take 1-2 business days, Chime provides fast access to funds for a small fee if you need instant deposit.
Key Considerations for Non-Bank Check Cashing
- Fees: Non-bank check-cashing services often charge fees, and these fees can be significant, especially if you’re cashing a large check. For example, a check-cashing service may charge up to 10% of the check’s value for personal checks, while fees for payroll and government checks tend to be lower.
- Check Type: Not all checks are eligible for cashing at non-bank locations. Payroll, government, and tax refund checks are usually accepted without much hassle, while personal checks or third-party checks might be subject to additional scrutiny or higher fees.
- Deposit Limits: Many non-bank check-cashing services have limits on the size of checks they can cash. Retail stores may set a maximum limit of $5,000 or less for check cashing, while check-cashing stores might allow larger checks but charge higher fees for those amounts.
- Security and Fraud Prevention: It’s important to be aware of the potential for fraud with non-bank check-cashing services. Always ensure that the check you are cashing is legitimate, and avoid using services that seem suspicious or offer terms that sound too good to be true.
- Availability: Non-bank check-cashing services often operate longer hours than banks, with some open 24/7. This can be a major advantage if you need to cash a check outside of normal banking hours.
Conclusion
Non-bank check cashing options offer a fast, convenient alternative to traditional banking, especially for those who don’t have bank accounts or need quick access to their funds. Retail stores, check-cashing businesses, prepaid cards, money transfer services, and mobile apps provide various services to meet different needs. However, it’s important to be mindful of fees, limits, and the type of check being cashed when choosing a non-bank check cashing provider. By comparing your options and understanding the costs and benefits, you can make the most informed decision about how to cash your checks without relying on a traditional bank.