How to Cash a Check Without a Bank Account

It’s possible, but you may have to pay a fee

Fact checked by Brendan HarknessFact checked by Brendan Harkness

Cashing a check is more difficult if you don’t have a bank account. You may be able to cash a check through the issuing bank, certain retailers, or a check-cashing service. But there may be limitations, as well as fees.

If you do have a bank account, you can deposit a check quickly (and cheaply). Most banks allow their customers to deposit checks via mobile app or in person, at no charge.

Key Takeaways

• Some banks allow non-customers to cash checks, but those that do may charge fees. 
• You can also cash checks at some supermarkets and retail stores, as well as check-cashing centers and online services. 
• Check-cashing fees vary, but they can be as high as 9.9% of the check total. 
• Opening a free checking account can make it easier to cash checks in the future.
• Six percent of American adults do not have access to a checking, savings, or money market account.

There are many free checking accounts available online that could provide a good way for you to cash checks. Many of them have low or no minimum opening deposits, making them relatively easy to open.

5 Ways to Cash a Check Without a Bank Account

Whether you live in an area with limited access to banks or credit unions or you’re concerned about bank fees, there are many possible reasons why you may not have a bank account. According to a study released by the Federal Deposit Insurance Corporation (FDIC) in 2021, the most common reason people were unbanked was not having enough money to meet banks’ minimum deposit requirements.

Although cashing a check is more challenging without a bank account, there are several ways to cash personal checks and tax refunds.

Important

According to the Federal Reserve, 6% of American adults were “unbanked” as of the end of 2022, meaning they didn’t have access to a checking, savings, or money market account.

1. At the Issuing Bank

If you don’t have a bank account, one of the easiest options is to visit a branch of the bank that issued the check and ask the teller to cash it for you. In most cases, you can cash the check at that bank’s branch as long as the writer of the check is an account holder.

However, you may need to pay a fee since you’re not a customer. Depending on the bank or credit union, the dollar amount of the check, and the type of check you need to cash, the fee may be up to $100 (such as for tax checks). The fee may be a percentage of the check amount.

Not all banks allow non-customers to cash checks, and banks are legally permitted to refuse to do so. 

2. At a Major Retailer or Grocery Store

Some major retailers and grocery store chains, such as Kroger, Publix, and Walmart, have money services departments where you can transfer money, purchase money orders, and cash checks.

Fees vary by location and check amount, but these big-brand services tend to have relatively low fees. For example, Walmart’s maximum fee is $4 for pre-printed checks up to $1,000 and $6 for personal checks up to $200. However, there may be limits on the dollar amount or types of checks these services will handle. 

3. At a Check-Cashing Store

Check-cashing stores are financial services companies that specialize in serving unbanked or underbanked people. They typically offer check cashing, money orders, and payday loans.

These companies, such as Amscot or ACE Cash Express, will cash a variety of checks, including personal and government checks. Fees vary by company and location but can be as high as 9.9% of the check amount.

4. With an Online Provider

If you don’t have a retailer or check-cashing store near you, another option is to work with an online check-cashing service. Services like NetSpend and INGO let you cash a check electronically and deposit the funds onto a prepaid debit card or into a PayPal account, or pick up cash at a local money-services center.

These services typically have restrictions on the dollar amounts they will process. For example, you may only be able to cash checks up to $5,000. Fees vary by service: INGO, for example, charges up to 5% of the check amount.

Warning

Prepaid debit cards are convenient, but they’re risky. Like cash, there’s no recourse if your card is lost or stolen, and prepaid debit cards are commonly used in scams. 

5. Sign the Check Over to Someone You Trust

If you’re looking to avoid fees, another way to cash a check without having a bank account is to sign it over to someone you trust to deposit at their bank—as long as their bank accepts third-party checks. Banks aren’t required to accept this type of transaction, so it’s wise to contact the bank first to confirm whether this option is available to you. Mobile deposit apps usually don’t accept third-party checks, so your friend will typically need to visit a bank branch in person, and you may also need to be there to verify your signature.

If the bank allows third-party checks, ask about the process. Typically, you’ll write “Pay to the Order of” and the person’s name in the endorsement area below your signature to give the other person ownership of the check. After depositing the check, they can withdraw the amount in cash and give it to you.

Tips for Cashing Checks Without a Bank Account

When deciding where to go to cash a check, consider the following factors:

• Cashing large checks without a bank account: Some banks and retailers have restrictions on check amounts. If you’re trying to cash a check for a larger amount, such as $5,000 or more, you may have to visit the issuing bank or a check-cashing store. 
• Cashing business checks without a bank account: Some services won’t cash business checks, and those that do may charge higher fees for business checks. 
• Cashing government checks without a bank account: Fees typically vary based on the type of check you need to cash. In general, fees tend to be lower for cashing government checks than for personal checks, both at retailers like Walmart and check-cashing stores like INGO Money. 

Frequently Asked Questions (FAQs)

Is It Free to Cash a Check If I Don’t Have a Bank Account?

Whether you’ll have to pay a fee to cash a check depends on the type of check and its amount, as well as where you’d like to cash it. Some banks and check-cashing centers may waive the fee if the check is for a small amount, such as less than $25, but larger checks will typically incur fees.

Can I Cash a Check at Any Bank?

No, you can’t cash a check at any bank or credit union. You typically need to have an account at the bank or visit the bank that issued the check you received. Or, if you know someone who has a bank account and is willing to help you cash the check, you may be able to sign the check over to them and have it cashed at their bank.

Can I Cash a Check Online Without a Bank Account?

Some services, such as NetSpend and INGO, will allow you to cash a check online without a checking account. For a fee, these services will cash the check and transfer the funds to a PayPal account or prepaid debit card. 

Can I Cash a Check Without ID?

You may be able to cash a check through an ATM, mobile deposit, or online check-cashing service without showing any form of identification, such as a driver’s license. Otherwise, most providers require an ID to process your check. If you don’t have an ID, you may need to sign the check over to someone else to cash on your behalf. 

Can a Bank Refuse to Cash a Check?

Yes, banks and credit unions can legally refuse to cash checks if you don’t have an existing account with them.

The Bottom Line

If you don’t have a checking or savings account, learning more about your options for cashing checks can help you save money. However, finding a free bank account can be a smart way to avoid paying fees and keep more of the money from your checks. 

If you’re unbanked, check out the best free checking accounts and lifeline or second-chance bank accounts for low-cost options. 

Read the original article on Investopedia.