A client called me in a panic because she had just been charged $45 to cash her $450 paycheck at one of those storefront check cashers. That's 10% of her hard-earned money that she lost. She didn't have a bank account and didn't know there were better options.
Getting a check should feel like good news, not the start of a long search for treasure. But if you don't know where to cash it, you might have to pay a lot of money to get to what you already own. The Consumer Financial Protection Bureau says that the check-cashing business handled about $893 billion in transactions in 2022. By 2027, that number could reach $1.6 trillion. A lot of checks are going back and forth.
Here's the human side of it: You earned that money. You should keep as much of your money as you can, whether it's your paycheck, a refund, or a gift from Grandma. Here's a simple breakdown of where you can cash checks, how much they'll cost you, and which places you should stay away from at all costs.
Start with the bank where you have a checking or savings account. This is definitely the best choice because most banks and credit unions let people cash checks without charging them. Simply bring in your check and ID, and you'll get your money right away.
You have a few options for this. You can go to a branch during business hours and give your check to a teller. If you're in a hurry, many banks have ATMs that let you deposit checks, but you might not get the full amount right away. Federal banking rules say that the first $225 usually arrives within one business day, and the rest arrives on the second day.
Mobile deposit is another big change. I use this all the time. You can literally take a picture of your endorsed check with your bank's app, and the money will start to process. According to FDIC survey data, this feature is now available at most banks and is the main way that almost half of banked households access their accounts.
If you're cashing in person, you'll need your debit card and sometimes a photo ID. You only need your phone and the check for mobile deposits.
Time to process: right away if you cash in person at the teller window. It usually takes 1–2 business days for ATM and mobile deposits to be fully available.
Price: Free for people who have an account.
If you think about it, the bank that wrote the check has the money in the account. They can check the money right away, which is why a lot of banks will cash checks written on their own accounts even if you're not a customer.
Let me make something clear that people often get wrong. Actually, they don't know which bank to go to. The bank name on the check is where you want to go. Not just any bank, but the one that is written on the check.
MyBankTracker's 2025 survey of banking fees found that policies are very different:
It's a good idea to call ahead because some banks won't cash checks for people who aren't customers. But when they do, the fees are usually much lower than other options.
Two forms of ID, like a driver's license and a second form like a passport or state ID.
Processing time: right away after verification.
The cost is free to $8, depending on the bank and the amount of the check.
Many big stores have customer service desks where you can cash checks, and the fees are surprisingly low. This is a good choice for people who need cash fast and can't get to a bank easily.
In this case, Walmart is in the lead. They will cash checks for payroll, government, tax refunds, cashier's checks, insurance settlements, and 401(k) retirement distributions. According to Walmart's current fee schedule, the fees are simple: $4 for checks up to $1,000 and $8 for checks between $1,001 and $5,000 (which is their maximum).
Kroger and its family of stores (Fred Meyer, Ralphs, King Soopers, and others) also cash checks. With a shopper's card, the fee starts at $3, but it varies by state. They will take care of checks for payroll, the government, insurance, and businesses.
If you live near a Kmart, they are one of the cheapest places to cash checks up to $2,000, charging $1 or less.
Important limitations: Most stores won't cash personal checks, and if they do, they have strict rules (Walmart only accepts two-party personal checks up to $200). They also need a photo ID from the government.
You will need: A valid government-issued photo ID, like a driver's license, state ID, or passport.
Time to process: right away.
Price: $1 to $8, depending on the amount of the check and the store.
This is where technology and ease of use come together. PayPal and Venmo both let you deposit checks by phone, and if you wait long enough, they can be completely free.
PayPal and Venmo (which PayPal owns) work in pretty much the same way. You take a picture of your endorsed check with the app, send it in for review, and then wait for it to be approved. As of 2025, Venmo had more than 90 million active users and PayPal had 434 million accounts around the world. These two services have become major players in processing checks.
The free option is to wait 10 days and not pay any fees. Great if you don't need to get in right away.
The quick option: If you want to get your money right away or the next day, PayPal charges 1% of the check amount (at least $5) for payroll and government checks with pre-printed signatures.
PayPal's fee structure says that for all other types of checks, like hand-signed payroll and government checks, the fee goes up to 5% (minimum $5).
Venmo's "Cash a Check" feature, which is powered by Ingo Money and First Century Bank, has almost the same terms as the other services. During the rollout of the 2021 stimulus checks, this feature handled millions of checks, but the exact number of transactions is not made public.
To use this service, you must have either Direct Deposit or a Venmo Debit Card set up on your account, as well as location services turned on and a verified email address.
You'll need: the app, a smartphone camera, and either a debit card or a bank account that is linked to the app.
Processing time: 10 days for free processing, and for expedited service, it can take anywhere from a few minutes to an hour.
Cost: Free (with a 10-day wait) or 1–5% for faster processing.
This is a great option if you want to avoid banks but need something more reliable than check-cashing stores. Many companies that offer prepaid cards now let you deposit checks on your phone, just like regular banks do.
For example, NetSpend's mobile app lets you load checks directly onto your prepaid card. According to NetSpend's fee schedule, you can get your money for free if you wait the usual processing time. If you want your money faster, you can pay 2% of the check amount (at least $5).
The Brink's Prepaid Mastercard app, which works on both iOS and Android, lets you use Mobile Check Capture.
As of 2025, Cash App lets you deposit checks on your phone, but the limits are different depending on your account history and level of verification. The maximum amount you can deposit is $3,500 per check and $7,500 per month.
You can get the money by withdrawing it from an ATM once the check clears. Just so you know, prepaid cards often have their own fees, like monthly maintenance fees, ATM withdrawal fees, and reload fees. So make sure to read the fine print.
You'll need: the prepaid card, the mobile app, and the check.
Processing time is usually 1 to 5 business days, but you can pay to have it done faster.
Cost: Different providers charge different amounts. Standard processing is often free, while expedited service costs 1–2%.
Not all checks are the same, and knowing the differences can help you save money and avoid problems.
Payroll checks
Because they are seen as low-risk, payroll checks are usually the easiest to cash. They come from well-known employers, have pre-printed information, and have a history of being real. Most stores and check-cashing services charge the least for payroll checks.
Checks from the government
Checks from the government, like Social Security, unemployment benefits, tax refunds, stimulus payments, and veterans benefits, are also low-risk and usually have lower cashing fees. According to the FDIC survey, unbanked families depend a lot on cashing government checks. Three out of four unbanked families use check-cashing services to cash checks from work, retirement, or government agencies.
Personal checks
The problems come from personal checks. Because they are more likely to not have enough money, retailers either won't touch them or charge a lot more. Consumer Federation of America data shows that the average fee for cashing a personal check was 9.36%, or $14.04 for a $150 check. The fees ranged from 1.85% to 16%.
Cashier's checks and money orders
Because they are prepaid and guaranteed, cashier's checks and money orders are like the VIPs of the check world. Banks usually cash these more easily, even for people who don't have accounts with them.
I need to be very clear about this. For the most part, check-cashing stores are the worst choice for your money. Yes, they are easy to use. Yes, they are often open late and on the weekends. Yes, they don't need a bank account. But that ease comes at a high cost.
According to a survey by the Consumer Federation of America, the average fee for cashing a paycheck was 2.34%, with fees ranging from 1% to 6%. That might not sound so bad until you do the math:
Check Amount, 2.34% Fee, 6% Fee, 26 Checks Annual Cost at 2.34%, 26 Checks Annual Cost at 6%
$320, $7.49, $19.20, $194.74, and $499.20
$500, $11.70, $30.00, $304.20, and $780.00
$750.00, $17.55, $45.00, $456.30, $1,170.00
$1,000 $23.40 $60.00 $608.40 $1,560.00
Some states set rules about these fees. For example, in New York State, the maximum fee for cashing a public assistance check is 1.5%, and the maximum fee for cashing any other check is 2.2% or $1, whichever is greater. According to state rules, Illinois limits payroll check fees to 1.4% plus $1 for checks worth $100 or less and 2.25% for checks worth more than $100.
But a lot of states don't have any limits at all, which makes it easy for businesses to charge too much.
What are the high fees for? These companies work in places where banking is hard to get to and serve people who don't have many other options. They're counting on customers being desperate, and sadly, it usually works.
Payday loan companies that also cash checks are even worse than regular check-cashing stores. They want to sell you high-interest payday loans, which makes it very hard to get out of the cycle.
Experian's research shows that payday lenders don't often post their check-cashing fees online, so you have to go in person to get them to pitch other services. When they do tell you how much they charge, it's usually a percentage, which means that bigger checks cost more.
For example, Check City starts at 1.99% for payroll and government checks from within the state, but the rate goes up depending on the type of check and state rules. Speedy Cash charges at least $2, plus a percentage that changes depending on where you are.
If someone offers to cash your check at their house, a corner store that isn't properly licensed, or anywhere else that seems shady, don't take them up on it. Please don't. You have no protection if something goes wrong, and many check fraud schemes start with these kinds of informal agreements.
Let's talk about numbers for a minute, because this is where it really matters. The FDIC's 2023 National Survey found that about 4.2% of U.S. households (about 5.6 million households) did not have a bank account in 2023. This is down from 8.2% in 2011. That's a step in the right direction, but millions of Americans still don't use banks.
The Federal Reserve's report from 2024 said that 6% of adults did not have a bank account. The rates were much higher for some groups:
Geographic factors: Cities usually have more bank branches, but they also have more check-cashing stores that take advantage of people. People in rural areas may not have easy access to either, which means they have to travel long distances or use mobile banking services that need a stable internet connection.
A 2025 study by the Philadelphia Federal Reserve found that financial literacy at the state level is strongly linked to unbanked rates. However, the availability of local branches didn't have much of an effect on whether people had accounts, which goes against the common belief that having branches nearby is enough to solve the problem.
Here are some useful tips I've learned over the years of helping people deal with this:
Strategy 1: Get a basic checking account. Even if you've had problems with your bank in the past, you might want to look into second-chance checking accounts. A lot of banks and credit unions offer these just for people who are trying to fix their credit history. You won't have to pay hundreds of dollars a year in check-cashing fees.
Strategy 2: Set up direct deposit with your employer. Once you have an account, do this. With some banks, your paycheck goes into your account automatically, usually 1–2 days before payday. If you want to buy a home, having a direct deposit with a bank you've been with for a while makes your mortgage application much stronger. There are no longer any fees for cashing checks.
Strategy 3: Get to know one bank. If you regularly use the issuing bank to cash checks, some branch managers may waive fees for repeat customers, especially if you're thinking about opening an account.
Strategy 4: If you can, plan ahead. The free mobile deposit options through PayPal or Venmo are great if you can wait 10 days. As soon as you get your check, deposit it so you can get the money for free when you need it.
Strategy 5: Look at all your options. Before you choose a way to cash a check, do the math. That $4 fee at Walmart might seem fair, but if you cash checks a lot, opening a free checking account will save you more than $100 a year.
Accessing money has changed completely because of technology. According to FDIC survey data, almost half of all banked households used mobile banking to access their accounts in 2023. This is almost nine times more than in the previous decade.
But now, it's not just regular banks that let you deposit checks on your phone. The number of people using payment apps has grown very quickly:
According to data from the Pew Research Center, more than 76% of adults in the U.S. have used payment apps like PayPal, Venmo, Apple Pay, or Zelle.
The Consumer Financial Protection Bureau says that money kept in payment apps like Venmo or Cash App usually doesn't have the same FDIC insurance protection that you would get from a regular bank account. There are some exceptions, like when you link a debit card to Cash App or add Venmo funds through direct deposit or check cashing. But in general, keeping money in these apps is riskier.
The CFPB says that instead of leaving money in payment apps, you should move it back to accounts that are federally insured. I do this too. As soon as I get a Venmo payment, I move it to my bank account.
Let's go through this together, okay? Let's say you just got your first paycheck and don't have a bank account yet. Here's what you need to do:
Let's look at how much you'd really pay with each option. I used a $500 biweekly paycheck as an example because that's about how much someone making minimum wage in a lot of states would get.
It's pretty clear what the math is. You still spend $104 a year, even if you pay the $4 Walmart fee every time you get paid. But a check-cashing store at average rates costs you $304, which is $200 more a year, or enough for a month's worth of groceries for many families.
But who really won? You don't have to pay anything to cash a check if you have a bank account, and you save that whole $1,040-$3,040 over the course of ten years.
Checks can bounce for a number of reasons, and it's not always your fault. The person who wrote the check might not have had enough money, or their account might be frozen. Here's what you should do:
Don't cash a check for someone else. For real. This is dangerous for both your money and the law. You need to write the check out to the person who is cashing it. If someone asks you to cash their check, there's probably a good reason they can't do it themselves, and you could be held responsible.
Most stores have a limit on how much they will accept in one transaction, which is usually $5,000 or less. You will need to use a bank or credit union for bigger checks. If you don't have an account, the issuing bank is your best bet, but they might need more proof.
Checks from other states: These can be harder to cash. Many stores won't take them, and banks may hold them for a long time. PayPal or Venmo's mobile deposit might work better, but it's not a sure thing.
Old checks (over 6 months): After six months, most checks become "stale-dated," and banks may not cash them. Call the person or group that gave you the check and ask for a new one.
This is the bigger picture. Cashing checks without a bank account is a quick fix, but it's not a long-term fix. Every fee you pay is money that could be used to help you build a better future.
Research by the Federal Reserve shows that only 1.3% of Americans who are actively looking for bank accounts (the "unbanked") have problems that make it hard for them to open one. The other 3.2% of people who don't have accounts aren't interested in banking, usually because they don't trust it or think they don't have enough money.
But here's what you should know: banking has changed a lot. A lot of banks and credit unions now offer:
Having a good relationship with your bank makes the mortgage process easier when you're ready to buy a home. Lenders want to see regular deposits, good account management, and a paper trail that shows you are responsible with your money.
You don't have to pay a lot of money to cash a check. In 2026, you have more choices than ever, from traditional banks to mobile apps that let you bank on the go. The most important thing is to know your options and choose the one that makes the most sense for your money.
If you regularly pay to cash checks, I suggest you think about opening a checking account. There are second-chance checking accounts that are made just for people who have had problems with their banks in the past. You can use the money you save on check-cashing fees to build an emergency fund, pay off debt, or save for things that are important to you.
Every dollar you spend on check-cashing fees is a dollar that can't help you in the future. And to be honest? You should be able to keep more of the money you worked hard for.
If you have an account, your own bank or credit union is definitely the cheapest place to go. It's free there. If you don't have an account, the bank of the person who wrote the check is your next best bet. Many of them will cash checks for free or for a small fee of less than $10. Kmart is the cheapest retail option for checks up to $2,000, charging only $1 or less. Walmart's fee of $4 for checks up to $1,000 is also competitive and more widely available. You can cash checks for free with mobile apps like PayPal and Venmo, but you'll have to wait 10 days for the money to go through, which costs you nothing but time.
You can cash a check without a bank account, but it will usually cost you something. The best thing to do is go to the bank that issued the check (the bank name is printed on the check itself). Many banks will cash their own checks for people who don't have an account, sometimes for free or for a small fee. Walmart, Kroger, and Kmart are some of the biggest stores that will cash your check for $1 to $8, depending on how much it is. You can deposit checks and send money to a prepaid debit card with payment apps like PayPal and Venmo, even if you don't have a bank account linked to them. There are a lot of check-cashing stores, but they charge the most, usually between 2% and 10% of the value of your check. If you don't have a regular bank account, prepaid debit cards with mobile deposit features are also a good choice. Just know that if you don't have a bank account for a long time, you'll have to pay fees that you could avoid by opening even a basic checking account.
You usually need a government-issued photo ID to cash a check. Your driver's license is usually the main form of ID they will accept, but state-issued ID cards, passports, or military ID cards will also work. When you cash a check at a bank where you don't have an account, they usually want two forms of ID: your main photo ID and a second form, like a Social Security card, birth certificate, or another government document with your name on it. Some stores are more lenient and only ask for one photo ID. When you set up your account for mobile check deposits through apps like PayPal or Venmo, you'll need to prove who you are by giving your Social Security number, date of birth, and sometimes even pictures of your ID. Different institutions and check amounts have different requirements. Generally, larger checks need more thorough identification checks. If you're worried about having enough ID, call ahead to the place you want to go and ask what they need before you go.
When you cash your check, the timing can be very different depending on where and how you do it. You can cash a check right away at the teller window of a bank or credit union where you have an account. You get cash right away. If you deposit the check instead, banks must make the first $225 available within one business day, and the rest is usually available by the second business day. At Walmart and other stores, checks are processed right away at the customer service desk. The whole process, including any verification they need to do, takes about 10 minutes. The bank that the check writer uses can also cash checks right away for people who don't have an account with them, as long as they can prove that the money is available. Mobile check deposits take longer but are easier. You take a picture of your check through the app, and it can take anywhere from one to ten business days for the money to show up in your account, depending on the app. PayPal and Venmo will cash your check for free if you wait 10 days, or they will do it faster for a fee that makes the money available in minutes to an hour. The main reason people go to check-cashing stores is that they process checks right away, even though they charge a lot. If you need cash right away, going to a bank, store, or check cashing place is the quickest way to get it. But if you can wait a few days, mobile deposit options will save you money.
Because they work in a high-risk market niche and can, check-cashing stores charge what seems like too much money. These stores mostly help people who don't have bank accounts and don't have many other options. They also make it hard for people to use traditional banks. The Consumer Federation of America says that the average fee for cashing a paycheck is 2.34%, but it can be as high as 6% or more. Personal checks cost even more, at an average of 9.36%. The stores say they need higher fees because they take on all the risk. If a check bounces or is fake, they lose money. They also work in places where traditional banks have closed branches, which means they have to pay more for things like security, insurance, and theft prevention. A lot of states don't have any rules about how much check-cashing businesses can charge, so they can charge whatever the market will pay. According to state rules, New York limits fees to 1.5–2.2% and Illinois limits payroll check fees to 1.4–2.25%. What really makes the fees so high? These stores know that their customers are in a hurry, have few other options, and need to get their money right away. It's predatory pricing that goes after people who are weak. The best way to avoid these fees is to open a checking account, even a basic one. This will save you hundreds of dollars a year and eliminate the need for check-cashing services.
When you cash a check, you get the full amount in cash right away. You give them the check, and they give you bills and coins. When you deposit a check, you put the money into a bank account, either your own or someone else's (if they've signed it over to you). The money becomes available electronically once the check clears. You get cash right away when you cash a check. The transaction is done. When you deposit a check, the bank has to check to see if the money is available in the check writer's account. This usually takes one to five business days, depending on the type and amount of the check. When you cash a check, you can use the money right away, but you have to carry it around with you, which could be lost or stolen. Depositing is safer because the money goes directly into your account, where it is FDIC insured up to $250,000. You can then use a debit card, make an online transfer, or withdraw cash from an ATM to get to it. Some places, like banks, will let you do both. They call it "cashing with deposit back," and they will cash the check so you can take some money right away and deposit the rest. From a financial planning point of view, depositing is usually better because it keeps your money in a safe, insured account and helps you build a relationship with your bank that will be useful if you ever need loans or other financial services. If you need cash right away for bills and don't have a bank account, cashing is your only choice.
Sorry, but you can't cash a check at an ATM unless you have a debit card linked to a bank account. You can only use ATMs if you have an account with them. To use any of their services, such as depositing a check, you need to insert your debit card and enter your PIN. When you deposit a check at an ATM, you're not really cashing it in the usual way. Instead, you're putting it into your account, and the money will be available after a processing period. The ATM can't dispense cash for a check deposit from someone who doesn't have an account. If you want to avoid paying to cash checks and don't have a regular bank account, your best bet is to get a prepaid debit card that lets you deposit checks on your phone. Cards from providers like NetSpend, Brink's, or Cash App allow you to deposit checks via mobile app, and once the check clears, you can withdraw cash from ATMs using the prepaid card. There are usually fees involved - some charge monthly maintenance fees or per-transaction costs - but they're typically lower than check-cashing store fees. The mobile deposit limits vary by provider, with Cash App allowing up to $3,500 per check and $7,500 monthly as of 2025. In short, ATMs alone won't help you if you don't have an account. But prepaid cards with mobile deposit and ATM access can make a system that works around that.
Mobile check deposit through established payment apps like PayPal, Venmo, and Cash App is generally safe from a fraud and security perspective, but there are some important caveats you need to understand. The apps use bank-level encryption and other security measures to keep your information safe while you deposit your check. They also employ fraud detection systems to verify check authenticity and reduce the risk of accepting bad checks. However, the Consumer Financial Protection Bureau warns that funds stored in these payment apps typically lack FDIC insurance protection, unlike traditional bank accounts. There are some exceptions: Cash App funds are insured if they are linked to a Cash App debit card, and Venmo funds added via direct deposit or check cashing are also insured. But in general, money sitting in these apps isn't protected if the company goes bankrupt. From a practical safety standpoint, you should transfer money out of payment apps and into FDIC-insured bank accounts rather than leaving large balances sitting in Venmo or PayPal. The check deposit feature itself is secure - you take a photo, it gets encrypted, reviewed, and processed - but the lack of federal deposit insurance means you're taking on more risk than you would with a traditional bank. According to data from the Pew Research Center, more than 76% of adults in the U.S. use payment apps. Serious security breaches are rare, but the CFPB says to treat these apps as temporary holding spots instead of main financial accounts. Instead of thinking of them as savings accounts where you keep your money for a long time, think of them as digital wallets for moving money around.
If you receive a check from someone you don't fully trust, proceed very carefully because you could be on the hook if the check bounces or turns out to be fraudulent. First, don't spend any of the money until the check has fully cleared. This can take longer than you think. Even if banks show the money in your account after a day or two, they can still take it back if the check doesn't clear, sometimes up to several weeks later. Your safest move is depositing the check at your bank rather than cashing it, because if it bounces you won't have already spent cash that needs to be returned. Call the bank that issued the check (the bank name printed on the check) and verify that the account exists, has sufficient funds, and that the check number matches their records - most banks will confirm this information without violating privacy rules. Check for things like misspelled words, blurry or unclear printing, missing security features, or check numbers that don't seem right (personal checks usually start at 1000, not 101). Be especially wary of cashier's checks or money orders from strangers, as these are commonly used in scams despite being considered secure - fraudsters create convincing fakes that fool even bank tellers initially. If the person who gave you the check tells you to deposit it and send them or someone else some money, that's a classic scam. Get out of there right away. When in doubt, tell the person you'd prefer payment through a more secure method like a bank transfer, Zelle, or even cash if it's someone local. Trust your gut - if something feels off about the situation or the person's explanation for why they're paying by check doesn't make sense, it's better to refuse the check than deal with the legal and financial headaches of a bounced or fraudulent check later.
Second-chance checking accounts are specifically designed for people who've had previous banking problems and can't qualify for regular checking accounts, usually because of past overdrafts, bounced checks, or accounts closed for negative balances. These accounts work basically like regular checking accounts - you can deposit money, write checks, use a debit card, and access online banking - but they typically come with some restrictions and requirements to protect the bank. If you try to spend more than you have with a second-chance account, the transaction will be declined instead of going through and costing you $35. Many require you to maintain direct deposit of your paycheck or government benefits to keep the account open. Fees are common every month and usually range from $5 to $15. However, some companies will waive the fee if you keep a minimum balance or set up direct deposit. The account usually has limits on daily withdrawals or purchase amounts initially, which gradually increase as you demonstrate responsible account management. After maintaining the account in good standing for six months to a year, many banks will convert it to a standard checking account with full features. The best thing about these accounts is that they don't look at your ChexSystems report. This is like a credit report for the banking industry. If you've had accounts closed because of negative balances or too many overdrafts, you'll have a mark that keeps you from opening regular accounts for five years. Second-chance accounts give you a path back into mainstream banking, help you rebuild your banking history, and most importantly, eliminate the need for expensive check-cashing services. Credit unions often offer better terms on second-chance accounts than big banks, so shop around and compare fees, restrictions, and the timeline for converting to a standard account.
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