How to Cash a Check

Cashing a check is usually quick and easy, with a few exceptions

Fact checked by Brendan HarknessFact checked by Brendan Harkness

You can cash a check in person, at an ATM, or by mobile app. You must sign and submit the check, and depending on a few factors, you’ll generally receive the funds in your account within the next few days.

Let’s take a closer look at how cashing a check works, and details for specific situations. We’ll cover the three main methods for how to cash a check, but the general process is the same regardless of how you do it.

Key Takeaways

• After depositing a check, you usually have to wait until the next business day before the cash is available to spend—but this waiting time can vary by bank.
• Check cashing services offer immediate cash without needing a bank account, but charge significant fees.
• Additional rules may apply if you’re cashing a very large or very old check, cashing a check at a bank that’s not your own, or cashing a check that’s written out to someone else.

3 Ways to Cash a Check

Most banks and credit unions offer at least three different ways to cash a check. Here’s what you need to know about the steps involved for each route.

In Person

Although mobile banking is growing in popularity, many people still prefer to visit banks in person. You might prefer to do your banking face-to-face, or maybe your bank has a different funds availability policy for in-person check deposits vs. mobile check deposits. In any case, here’s how it works.

1. Bring your ID and the check: You may need to show your photo identification in some situations, such as if you’re depositing the check at a bank or credit union branch away from your normal one.
2. Fill out a deposit slip: Your financial institution may require you to fill out a deposit slip, a small form where you’ll enter your account number, the check’s amount, the date, etc. You can often fill this out while waiting in line, which is usually where these forms are located.
3. Sign the check and give it to the teller: Sign your name on the back of the check above the endorsement line.
4. Collect a receipt: The teller will typically give you a receipt for the deposit and can tell you when the funds will be available for use. 

Important

You generally won’t get access to the cash immediately when depositing a check at a bank or credit union. You’ll usually have to wait for the check to clear, which depends on the funds availability policy of that particular bank or credit union. Federal law requires financial institutions to make check deposits available to spend within one to five business days, tops. 

At an ATM

No branch nearby, after hours, or prefer to avoid people? No problem—you can use an ATM, but be aware that federal law allows banks up to five business days before making your deposit available to spend. Some banks offer a much quicker turnaround time, however. Here’s how to deposit a check using an ATM.

1. Look for the nearest check-accepting ATM: Check whether your bank allows ATM check deposits, and if so, which machines you can use. Not all banks allow ATM check deposits, and not all ATMs are equipped to receive them. Use your bank’s website or mobile app to find one of its own ATMs if possible, as the check may clear faster than if you use an ATM owned by another bank.
2. Log in to your account: Swipe or insert your ATM card, then enter your PIN to log in to your bank account.
3. Choose the deposit option: Assuming the machine accepts check deposits, look for this option in the main menu and select it.
4. Insert your check into the ATM: Sign the check and follow the prompts that the ATM gives you. Then, deposit your check into the machine. Depending on the ATM, you may need to use a deposit slip (which should be available at the ATM).
5. Review and submit: Make sure everything looks correct, and then complete the transaction.

Important

Be safe when using ATMs—be aware of your surroundings, and have your ATM card ready to go. It’s also a wise move to check for skimmers before using any ATM for any purpose.

With a Mobile App

About 44% of banking customers prefer to cash checks via mobile deposit, according to a 2023 survey from digital technology firm Mitek Systems. Mobile deposit lets you deposit checks from the comfort of your home or on the go. Here’s how it works:

1. Download the mobile app: Check your bank’s website, or search for your bank’s mobile app within the App Store or on Google Play.
2. Sign in to your account: Log in to your bank account via the app. If you haven’t logged in to your bank’s mobile app before, you may have to follow some verification procedures to access your account.
3. Look for the mobile deposit option: Each bank’s app looks different, so you may need to spend some time searching around. However, the mobile check deposit option will likely be easy to find.
4. Follow the prompts: Each bank has its own procedures for depositing a check using mobile deposit, and it’ll walk you through the process. You’ll generally need to enter the deposit amount and take clear photos of the front and back of the check. You must endorse the check.
5. Review and submit: Make sure everything’s entered correctly and that you haven’t accidentally added an extra “0” in your deposit amount. Then, submit the deposit.  
6. Hold the check, then destroy it: Unlike other check deposit methods, you’ll keep the paper check after you deposit it. Your bank’s app will generally tell you what to do with the check after you submit your deposit. If not, wait a few days until the check clears in case you need to re-submit a photo. Then, shred it for safety.

Where to Cash a Check

Banks and credit unions are two of the most common places to cash checks, but you can cash a check at other places too. Here’s a comparison of your options for cashing a check.

• Your bank or credit union: Most people prefer to use their own bank or credit union to cash checks. It’s free, and you can often get better help if you run into any problems, although funds usually aren’t available immediately. 
• The bank that issued the check: Bank policies vary, but oftentimes the bank or credit union listed on the check will cash it for you, sometimes for a fee if you don’t have an account there.
• Prepaid cards: Some banks offer prepaid debit cards that function like a checking account. You may be able to remotely deposit a check onto your card using a mobile app in just a few minutes, though there’s typically a fee for this service. For example, Green Dot charges up to 5% of the check amount, or a minimum fee of $5. 
• Check cashing stores: Payday lenders often offer check cashing services alongside payday loans. These services typically come with high fees, although you may be able to walk away with cash immediately.
• Major retailer or grocery store: Chain stores like Walmart and Kroger grocery stores sometimes offer check cashing services. These, too, often come with extra fees in exchange for same-day access to your cash. For example, Walmart charges $4 to cash printed checks up to $1,000 and $6 for personal checks up to $200.

Tips for Cashing a Check

Cashing a check requires a few steps, but isn’t generally that difficult. Here are a few things to keep in mind.

• Watch for scams: A common check scam involves someone sending you a check for a larger amount than you are actually owed, and asking you to return the difference via gift card, money order, cryptocurrency, etc. Eventually, the check doesn’t clear—but the money you sent does. The Federal Trade Commission advises never to accept a check for more than a selling price or send money from a check using gift cards or other cash alternatives.
• Check your digital security: Never use banking apps on unsecured Wi-Fi networks, such as free public Wi-Fi. Keep your PINs and passwords secure, and make use of mobile app security features like biometric logins and multi-factor authentication.
• Avoid check cashing services if possible: Fees vary by state and business, but you’ll typically pay a percentage of your check if you use one of these services. For example, Check City locations in Nevada charge 1.99% of payroll and government checks and 8% of personal out-of-state checks—expensive fees considering that cashing checks is free if you have a bank account.
• Make sure you trust the check writer: Banks must make your funds available within a few business days after depositing the check, but it can sometimes take weeks for the actual transaction to settle behind the scenes. And if a check turns out to be fake, you may need to repay those funds if you’ve spent them.
• Check before depositing large checks: Banks generally have limits on how much you can deposit or withdraw at any one time, especially when you’ve only recently opened an account. Look at your account agreement to see what qualifies as “large” to your bank.

If you’ve tried to get a bank account but don’t qualify, look into second-chance checking accounts, which are available at many financial institutions, or look for a bank that doesn’t use ChexSystems to view your banking history. 

Frequently Asked Questions (FAQs)

How Long Does It Take for a Check to Clear?

The amount of time it takes for a check to clear depends on your bank’s funds availability policy. Federal law says that banks must make the funds available to use within one to five business days, depending on the amount of the check and how you deposit it. Typically, your bank must make $225 of a deposited check available on the business day after you made the deposit, with the rest usually available by the second business day. 

Do Checks Expire?

Checks can expire in some cases. Federal law doesn’t require banks to cash checks that were written more than six months ago. Some banks will cash older checks, however, depending on their policies. 

Can You Cash a Check at Any Bank?

No, you can’t cash a check at just any bank, but you can cash a check at more banks than you might think. Some banks are more open than others to cashing a check from someone who isn’t a customer. If they do, they may charge a fee, so it pays to contact the bank in advance. 

Can You Deposit a Check That’s Not in Your Name?

You may be able to cash a check that’s not in your name, but you’ll need to clarify the bank’s third-party check cashing policy. The person whose name is on the “Pay to” line on the check might be required to come with you to the bank, for example, or they may need to sign the check over to you by writing “Pay to the order of” underneath their own endorsement on the back of the check.

What Is a Bounced Check?

A bounced check is a check that’s written from an account that doesn’t have enough funds in it to cover the withdrawal. If you write a check that bounces, your bank may charge you a returned payment or non-sufficient funds fee. 

If you wrote a check to pay a bill, such as your credit card payment, and it bounced due to insufficient funds in your account, your payment won’t go through. If the payment is late enough, the creditor might report the late payment to credit agencies—which might affect your credit score.

The Bottom Line

If you need to cash a check and access the money immediately, your best bet is to use a check cashing service—but that’ll cost you a fee. If you have a bank account and you can wait a few days for the cash, deposit it at the bank, at an ATM, or by mobile app. You can then withdraw cash at a bank branch or ATM, or spend it as normal straight from the account. This is usually the best option since you can avoid fees and keep every last cent that you receive in the check.

Read the original article on Investopedia.