How to Cash a Check | Banking Advice

Key Takeaways

There are many easy and free ways to cash checks through banking apps or payment apps like Paypal and Venmo.
There are also in person options that remain fee-free, like cashing the check at your bank or credit union.
Third party retailers or brick-and-motor locations can also work, though likely for a fee.

Not that long ago, Americans had one primary way to cash checks – at their bank or credit union. Today, we enjoy many check-cashing options, including mobile apps and retail stores.

Trying to decide where to cash a check? Read this guide on how to cash a check, including information about the fees you might end up paying.

Cashing a Check at Your Own Bank

Here’s what to consider when cashing a check at your own bank:

Your bank or credit union typically lets you cash a check at a branch, at an ATM or through a mobile app. But if you’re depositing a check at an ATM or through a mobile app, you might not get the entire amount of the check right away, depending on your financial institution’s policies and the amount of the check. The first $225 typically is available immediately or in one business day, with the rest of the money being released on the second business day.

Your bank or credit union normally won’t charge a fee if you’re cashing a personal, payroll, government, insurance or business check. If you’re cashing a check in person, bring at least one piece of identity verification, such as a driver’s license or passport.

Cashing a Check at a Different Bank

Here’s what to consider when cashing a check at a different bank:

If you don’t cash a check at your own bank or credit union, you should cash it at the bank or credit union that issued the check. The name of the issuer appears on the front of the check. Generally, you can do this without paying a fee.

You also can try to cash a check at a financial institution that’s not yours and not the one that issued the check. You might be charged a check-cashing fee of about $5 to $10. Keep in mind that a bank or credit union isn’t required to cash your check. Therefore, the financial institution might turn down your check-cashing request. Just as you would at your own bank or credit union, bring at least one form of photo ID with you.

Electronically ‘Cashing’ a Check

Here’s what to consider when “cashing” a check electronically:

Many banks and credit unions offer mobile apps that let you deposit checks electronically. This isn’t the same as the traditional way of cashing a check, but it’s close. To deposit a check with an app, you typically must snap a photo of the front and back of the check and then follow the financial institution’s directions for completing the mobile deposit. A mobile deposit normally clears in one business day, although it can take longer to access your money. Financial institutions generally don’t charge fees to use their apps for check deposits.

Stores like Walmart offer another way to electronically “cash” a check. Walmart’s free MoneyCard app enables you to deposit a check at no cost and get your funds within five business days. Payment apps like PayPal and Venmo also allow mobile check deposits.

PayPal, for example, charges no fee to cash your check. But you must wait 10 days to access your money. If you want to speed up the process at PayPal, you can pay a 1% fee to deposit a payroll or government check or a 5% fee for other approved checks. The minimum fee for each transaction type is $5.

Cashing a Check at a Retail Store

Here’s what to consider when cashing a check at a retail store:

If you’re seeking a quick, convenient way to cash a check, try a retail store or a supermarket. Just keep in mind that you’ll probably pay a fee for this convenience. The Kroger grocery chain, for example, lets you cash payroll, government, business and child support checks, among others. Kroger generally won’t cash a check exceeding $5,000. If you hold a Kroger Shopper’s Card and have a check that’s up to $2,000, you’ll typically pay a $3 fee. Cashing a check up to $5,000 usually costs $5.50 if you have a Shopper’s Card.

Retail stores might not cash certain checks, such as personal checks. If you are heading to a store to cash a check, don’t forget a form of ID, such as a driver’s license or passport.

Loading a Check Onto a Prepaid Card

Here’s what to consider when loading a check onto a prepaid card:

Some issuers of prepaid cards let you load the card with a check. For example, Green Dot lets you cash a check at Walmart and have that money loaded onto your prepaid card. You’ll be charged a reload fee of $3.74 and may be hit with a check-cashing fee as high as $4.

Loading a check onto a prepaid card might be limited to preprinted checks like payroll checks and benefits checks. The amount of money you’re able to add to a prepaid card may also be restricted. For instance, Green Dot caps check-to-card transactions at $5,000.

Be sure you’ve got a form of ID with you when you’re loading a check onto a prepaid card.

Cashing a Check at a Check-Cashing Store

Here’s what to consider when cashing a check at a check-cashing store:

If you don’t have an account at a bank or credit union, one option for cashing a check is a check-cashing store. However, fees charged by these stores – perhaps up to 2% – eat into the amount of cash you’ll actually leave with.

Aside from potentially high fees, check-cashing stores come with another risk. Some of these stores might try to rope you into taking out a high-interest payday loan. The annual percentage rate for these loans can be 400% or more. As with other options, if you are sure about visiting a check-cashing store, remember to bring a form of ID with you.