Most of the times the American consumers find cashing a cheque quite simple . Deposit the check at the nearest ATM or through a teller, and the job is done!Thats how simple it is ! Now here is a fact, 20% of the U.S households either rely on alternate sources for financial support or do not hold any bank accounts. So, what can be the easiest way for these people to cash in a check ?
Here is a list of solutions for check cashing for those who do not have the access to a bank account:
The Prepaid Alternative: It has been noticed that most of the American population is unbanked or under banked. It seems that they mostly rely on prepaid card accounts to cater to their necessities . For instance, charging a monthly fee of $4.95, Chase offers their users with a prepaid card that allows to cash checks free of cost at any Cash ATM. A company called Ingo Money offers smart mobile check deposit service which is as simple as sitting at home, opening the ingo app, clicking a picture of the check and touch the screen for a successful deposit ! Savvy isn’t it ?
Major Retailers: Brands such as Wal-Mart , 7-Eleven,and other supermarket chains also offer the service of check cashing. This option is more feasible as compared to check cashing outlets and bank because, the retailers are tentatively cheaper and more preferable.
There are certain select outlets of 7-Eleven wherein one can locate kiosks that allows to cash checks for a flat percentage charge. Similarly Wal-Mart charges $3 for checks less than $1,000 and $6 for checks above $1,000 and no more than $5,000
The check issuing bank: A bank by which the check has been issued has the authority to cash in the check for a non customer . Yet again the customer is liable to certain check-cashing fee, varying from bank to bank . For example, Citibank generally doesn’t impose any fee when a non-customer wants to cash in a check under $5,000. On the other hand, TD Bank charges $5 every time a non-customer wants to cash in a TD bank check.
Many a times, the non-customer ends up opening an account with the bank to avoid all the hassle and the extra fee pertaining to the check cashing.
Check cashing outlets: There are many stores which provide with the service of check cashing, although they may charge certain fees as per every transaction . Hence many a times it turns out to be costly. Some stores impose fees equivalent to a particular percentage of the check value. While some directly charge a flat fare in addition to the percentage fee. For instance, in order to cash a check of $1,000, one might have to end up paying $14 as an additional charge.
Research, know the market: It is always better to know the market. Many a time there are certain online websites that offer the option of cashing checks in certain areas of the U.S. While these are vendors and merchants who offer the service to cash checks at cheaper rates unlike the aforementioned options as well. If you know your locale properly, you might be able to be at ease every time you need to cash a check.