With the world evolving daily, almost every convenience store should have the option to cash checks for customers. Few corner stores are equipped to cash checks, but some ordinary stores such as Ralphs’s or Fred Meyer offer it. Offering cash checks or bill payment services will bring diversity to your store. Still, it is essential to have thorough knowledge about the cash checking process before going into that. Keep reading the article to learn about corner stores that cash checks and more about this new bill-paying method and how it has affected businesses.
What is Cash Checking?
Cash checking services offer access to your money without opening a bank account. This service allows people to cash different checks or paychecks while charging a fee. The fee could be from $1 to more than $100 and is charged every time someone cash checks. It is available for everyone who requires money in that instance. Millions of people in the USA are unbanked or underbanked and face issues during payments. Cash checks are a part of the financial service system for such people.
What To Do When You Have To Cash a Check?
Cashing a check depends on your chosen store or financial institution. If you do not own a bank account, then while cash checking, you need some ID, which could even be a driving license. Before depositing the check, you have to endorse the check with your signature and name. First, show your ID to the person dealing with the deposit to check your identification and then hand over the check.
You will receive the cash after that. This process is standard for almost all corner stores that cash checks throughout the USA. However, in the absence of your ID, you can still cash a check by signing the check to someone else. This is known as a third-party check; here, the person you have signed over the check will be able to cash it out on your behalf.
How Does The Corner Store Cash Check?
When you cash a check at a convenience store, they will likely charge a hefty amount just for their safety so that any chance of experiencing a risk is covered. On the other hand, cash checking at a corner store is pretty simple.
- You hand over the check with your signature and ID for verification.
- The store charges you an amount for any possibilities of risks.
- They handed over the amount you requested.
- After that, they deposit that check with other receipts.
Not every convenience store cash check, but then again, having that opportunity expands the business, so owners are putting more thought into it.
6 Types of Corner Stores That Cash Checks
Cash checking is not yet very prevalent throughout the US, but many stores have that option now. So, it is easier for people to gain access to cash in terms of need whenever and wherever. Here is a list of stores that usually carry cash checking ability.
1. Grocery Stores
Grocery stores are the first place for cash checking as they have a lot of people coming in every day. Some stores, such as WinCo Foods, require you to make a small purchase before cash checking as a fee. Other than that, most supermarkets charge a fee somewhere between $4.50 to $7.50 depending on the amount of your check. Local grocery stores do not always require a bank account for cash checking but ask at the service desk before handing over the check.
Walmart has cash checking services in their stores with a fee depending on the amount. If the amount is under $1,000, then a maximum fee of $4 is applied, and if the amount is over $1,000, then the fee is $8 at most. There are wide varieties of checks you can cash from Walmart, which include government, tax, preprinted, cashiers’, payroll, two-party personal, insurance settlement checks, and much more. However, there is a limit on the cash withdrawal from Walmart. For all the checks, you can cash out up to $5,000, and only for two-party checks, the limit is $200.
3. WinCo Foods
WinCo offers cash checking services, and the best part is they are open 24/7. This company has more than 125 stores within the US, so chances are you live near one. For checks under $500, WinCo will charge $5, and over $500 will cost a fee of $10. What’s even more impressive is that they will accept two checks weekly. But WinCo Foods will not carry checks issued more than 30 days ago.
4. Convenient Stores at Gas Stations
Some gas stations have convenience stores that allow cash checking. However, not every kind of check is permitted. For instance, at Mr Payroll stores, the service allows you to cash out government-issued, payroll, and other checks. They also ask to pay a minimum charge or purchase something from the store.
5. Kroger Money Services
Visit your nearest Kroger for check cashing. They will charge you a fee of $3 for checks of $2,000 and $5.50 for reviews up to $5,000. Anyone can cash a check from Kroger by showing a government-issued ID. Kroger allows people to cash check government, insurance settlement, tax refunds, business, and payroll checks. However, their services do not include accepting private, third party or starter checks.
6. Fred Meyer
It is a grocery store and a member of the Kroger group. Fred Meyer stores can be found in gas stations, and all of them offer cash checks. You can cash a check maximum of up to $5,000, and it charges a fee of $3. Fred Meyer is primarily based in the US and is expected in the western part of the country.
Some Of The Aspects To Keep In Mind When You Cash a Check
As many corner stores cash checks, people are more prone to doing it. There are several pros to cash checking while keeping in mind some of the aspects.
Making it a habit – Check cashing is easy, but it traps you in a cycle, and this cycle will not come in handy for the people who struggle to pay the bills. Also, this way, the person will not develop any connections with banks, which are neither good for the economy nor the individual.
Fees – In most stores, the costs are low, but some places charge high fees, as much as 2% of the check amount. This is bothersome for people as the money paid as fees could have been paid for bills or other necessities.
Risks – During cash checks, banks are not involved, for which there are no federal protections. Banks offer insurance to the account owners, so even if the banks fail, the government can pay up your loss. Cash-checking stores do not provide continued protections as the government is not involved.
No credit history – A check to cash does not build any form of credit history, as no credit cards or bank accounts are involved. As the money does not get deposited in the bank account, where you are spending is not recorded. Building a credit card history will avail many offers from the bank, but if you are not interested in that, then cash checking is all right.
FAQs On Cash Checking
Does it take long to cash a check?
Corner store cash checking does not take much time; you will be handed over the cash within minutes. But if you don’t have the required papers or the store does not accept the type of check, then it will take longer.
Can I cash a check without any ID?
If you do not have government-issued IDs to show, you need to have a bank account for cash checking. If you have none, you will not be able to cash a check.
Is cash checking safe?
Cash checking is unsafe as your funds are not protected by insurance, and carrying a large amount of cash is risky. Some corner stores that cash checks might try to sell risky payday loans.
Can a check be cashed anywhere?
No, neither the bank nor the credit union has to cash the check. However, suppose neither you nor the person who wrote the check has an account at the bank or credit union. In that case, the bank or credit union will often refuse to cash the check.
Can a check be cashed at any ATM?
You can cash a check at an ATM, but doing so is a little more complicated than simply going to a bank and doing it there. However, not all ATMs will provide you with this option; some machines will only let you deposit the check, while others won’t even let you deposit a check at all.
In conclusion, we have discussed what cash checks are, what to do when you have to cash checks, and corner stores that cash checks. Of course, there are some alternatives to cash checks, but your nearest stores provide services for cash checks, so why not. Cash checks are comparatively a new aspect in the US. Still, it has been gaining popularity for some time now as convenience store owners can also benefit their businesses. Hopefully, this article has been informative enough.
With over 3 years of financial experience, Hannah Edwards is the senior writer for All Finance Deals. She recommends research-based financial information about Transfer Money, Gift Cards and Banking. Hannah also completed graduation in Accounting from Harvard University.