Can’t cash a check at the bank? Whether you don’t have a bank account or just need your money fast, check-cashing services offer a way to get paid without the wait. These businesses turn your check into cash—right away—for a fee.
In this guide, we’ll break down how check-cashing services work, what they cost, and when it makes sense to use one. We’ll also cover safer and cheaper alternatives that could save you money in the long run.
Key Takeaways
- Check-cashing services let you cash checks without a bank account, but they often charge high fees for quick access to your money.
- They’re commonly used by people who are unbanked, underbanked, or need cash outside regular banking hours.
- Better alternatives include second chance checking accounts, non-ChexSystems accounts, prepaid debit cards, mobile check deposit, and direct deposit.
How Check-Cashing Services Work
Check-cashing services let you exchange a paper check for cash without needing a bank account. You bring the check to the provider, show a valid ID, and they verify that the check is legitimate. Once approved, you get your money—either in cash or on a prepaid debit card.
Most services charge a fee based on the check amount. Some use a flat fee, others take a percentage, and some do both. Fees vary by provider and can add up fast, especially if you use the service often or cash large checks. Always review the fee schedule before handing over your check.
Other Services Offered by Check-Cashing Stores
Many check-cashing locations do more than just cash payroll, government, and personal checks. They often function as one-stop shops for other basic financial services.
Common offerings include money orders, bill payment, prepaid phone cards, and fax or copy services. Some stores also sell postage stamps, bus passes, or lottery tickets. Others may offer payday loans or short-term installment loans, though those come with separate terms and fees.
Not every location offers the same services, so check with your local provider to see what’s available.
Most Popular Places to Cash a Check Without a Bank
If you’re considering a check-cashing service, it’s important to compare fees and check types. Here’s how some of the most well-known providers stack up:
| Provider | Types of Checks Accepted | Max Fee | Notes |
|---|---|---|---|
| Walmart | Payroll, government, tax refund | Up to $4 | Limit of $5,000 per check |
| ACE Cash Express | Payroll, government, personal | Up to 3% | Fees vary by location |
| Check Into Cash | Payroll, government, some personal | Up to 2% | Not available in all states |
| Moneytree | Payroll, government, some personal | Up to 1.99% | Offers competitive pricing |
| Check ‘n Go | Payroll, government, personal | Up to 3% | Also offers prepaid cards |
Always call ahead or visit the provider’s website to confirm fees and check types before you go. Some locations may have different policies or restrictions.
Why People Use Check-Cashing Services
Some people turn to check-cashing services for convenience—especially if they need cash outside regular banking hours or don’t have a branch nearby. Even those with a bank account may use them in a pinch.
For others, it’s the only option. According to The Financial Service Centers of America, over 30% of Americans are unbanked or underbanked. That includes people without a bank account or those who rely on services like payday loans or prepaid debit cards. For these groups, check-cashing services offer quick access to funds without the barriers that come with traditional banks.
Pros & Cons of Using Check-Cashing Services
Check-cashing services can be a quick solution if you need cash and don’t have a bank account. They’re widely available, often open after hours, and don’t require you to open an account to get your money. But that convenience comes at a cost.
Here’s a breakdown of the main pros and cons:
Pros
- Convenient access – Many locations are open late or on weekends, making them easy to use outside regular banking hours.
- No bank account needed – You can cash checks without opening an account or passing a credit check.
- Fast payment – You usually get your money on the spot, either in cash or on a prepaid card.
Cons
- High fees – Most services charge a percentage of the check amount, which can get expensive over time.
- Limited services – These providers typically don’t offer full banking features, so you may need other tools to manage your money.
- Lower oversight – Compared to banks, check-cashing businesses often face fewer regulations, which can raise concerns about transparency and trust.
Better Alternatives to Check-Cashing Stores
If you are seeking alternatives to check-cashing services, there are several options worth considering:
- Second chance checking accounts: These accounts are intended for people who have had difficulty opening a traditional bank account before. Second chance checking accounts typically have lower fees and more relaxed requirements, such as no minimum balance requirements or no credit checks.
- Non-ChexSystems accounts: If you’ve been blacklisted by ChexSystems, you can open a bank account at a non-ChexSystems bank or credit union. The financial institutions simply don’t use ChexSystems to check your banking history when opening a savings or checking account.
- Prepaid debit cards: Prepaid debit cards may be a suitable option for those who want to avoid check-cashing fees and have a secure place to store their funds. These cards operate like traditional debit cards, but you must load money onto them before using them for purchases.
- Mobile check deposit: Nowadays, many banks and credit unions offer mobile check deposit, which enables you to deposit a check using your smartphone. This can be a convenient option, particularly if you do not have enough time to visit a bank or if you reside far away from one.
- Direct deposit: Direct deposit is a service that allows your paycheck or other regular payments to be deposited directly into your bank account. This can help you avoid check-cashing fees and provide more convenient access to your funds.
How to Use Check-Cashing Services Safely
Before using a check-cashing service, compare fees across multiple providers. Some charge a flat rate, while others take a percentage—knowing the difference can save you money.
Stick to well-known providers and read the terms carefully before handing over your check. Make sure you understand all fees and conditions upfront. If anything feels unclear, ask questions before agreeing.
Also consider safer alternatives like direct deposit or mobile check deposit. These options reduce fees, save time, and often give you faster access to your money.
Bottom Line
Check-cashing services can be helpful if you don’t have a bank account or need quick access to funds. They’re easy to use but can get expensive if used often.
Weigh the pros and cons before deciding, and look into other options like mobile banking, prepaid cards, or second chance accounts. These alternatives could offer more control and fewer fees over time.
Frequently Asked Questions
What types of checks can be cashed at check-cashing services?
Most check-cashing services accept payroll checks, government checks, tax refunds, insurance checks, business checks, and personal checks. Some locations may not accept handwritten or third-party checks, so it’s best to call ahead or check their policy online.
Can I use a check-cashing service without identification?
Almost all check-cashing services require a valid government-issued ID. This can include a driver’s license, state ID, military ID, or passport. If you don’t have ID, you likely won’t be able to cash your check until you provide one.
What should I do if my check is declined by a check-cashing service?
Ask the provider why the check was declined. Common reasons include insufficient funds in the issuer’s account, errors on the check, or ID mismatches. If the issue isn’t with your ID, contact the person or business who issued the check and request a replacement or correction.
Can I cash a postdated check at a check-cashing service?
Most check-cashing services will not cash postdated checks. They typically require the date on the check to match the current date or a past date. If you bring in a postdated check, you may be asked to return on or after the written date.
