Ways to Cash a Check Without a Bank Account: A Guide

The Ins and Outs of Cashing a Check Without a Bank Account

For many people, having a bank account is a basic necessity. It provides a safe place to store money, makes it easier to pay bills, and allows for easy access to funds. However, not everyone has a bank account. According to the Federal Deposit Insurance Corporation, about 5.9 million people in the United States are unbanked.

For those without a bank account, cashing a check can be a bit more challenging. But fear not, there are still ways to cash a check without a bank account. Here are some options to consider:

In a nutshell

If you don’t have a bank account, there are a few ways to cash a check. Cashing a check without a bank account includes cashing it at the issuing bank, at a retailer or grocery store, or depositing funds into a prepaid debit card. You should avoid cash-checking stores if possible because they charge high fees.

How to cash a check without a bank account

In our modern age, there is no shortage of easy ways to cash a check. With a quick snap of your phone camera or a trip to the ATM, you can cash or deposit a check within minutes — that is, if you have a bank account.

But if you’re part of the 4.5% of U.S. households that are unbanked, doing something as simple as cashing a check can be a challenge. While there may be extra hurdles and fees involved, you do have options to cash a check if you don’t have a bank account. Let’s take a look.

Cash the check at the issuing bank

One way to cash the check is at the issuing bank. Look for the bank’s name printed on the check. While financial institutions like banks and credit unions aren’t legally mandated to cash checks for non-account holders, there’s a chance they will.

Before you step foot inside a brick-and-mortar location to cash a check, make sure they cash checks for non-account holders. You’ll also want to check if there are any rules or restrictions.

If the financial institution does allow non-account holders to cash a check, when you visit a branch, let a bank representative or teller know you’re not a current customer. You’ll be asked to present a valid form of government-issued ID, such as a driver’s license, passport, or military ID. Next, you’ll need to endorse or sign the back of the check in the endorsement area.

The issuing bank may charge a fee to cash a check. The fee might be a small percentage of the check amount or a flat fee.

Cash the check at a grocery store

Some major grocery chains and big-box discount retailers have check-cashing capabilities. Similar to the process at the issuing bank, to cash a check you’ll need to provide a valid form of government-issued ID, such as a military ID, resident alien ID, passport, or driver’s license. You’ll also need to endorse the check at the counter.

Note that some grocery stores cash only government-issued or payroll checks, insurance settlements, business checks, or child support checks. Check limits and fees may vary by state.

Use the check to load a prepaid debit card

Loading a prepaid debit card is another option to cash a check without a bank account.

If you want to cash checks regularly, such as paychecks, you can set up direct deposit so that your paychecks are automatically deposited into your prepaid card.

Other ways to cash your check into a prepaid card include using mobile check deposit, which uses your phone’s camera and an app. Alternatively, the funds can be deposited directly to your prepaid card by visiting an ATM.

The fees for a prepaid debit card vary depending on the card issuer and can add up quickly. There is typically a monthly fee, transaction fee, ATM withdrawal fee, and cash reload fee.

Sign the check over to someone else

An indirect way of cashing a check is to ask someone else to cash the check on your behalf and give you the cash afterward. Be sure you are turning your money over to someone trustworthy, such as a romantic partner, dependable family member, or close friend.

When you sign a check over to someone else, on the back of the check (below the endorsement area and below your signature) write “Pay to the Order of” and write the full name of the third party. This lets the bank or credit union know you are transferring ownership and permission to cash the check.

Use an online payment provider

You can also deposit your check if you have an account with an online payment platform such as Cash App, PayPal, or Venmo. To do so, endorse the check, snap a photo of the front and back using the app, and then select “deposit.”

Typically, these payment platforms don’t charge a fee for standard check cashing, but they do for expedited check cashing. The fees might be different for preprinted checks, such as payroll government-issued checks and for personal checks.

Avoid check-cashing stores

While convenient, cashing your check at check-cashing stores is expensive. The fees for cashing your check at these stores are so high that they’re often seen as predatory. Further, if you can’t afford to pay the fee on cashing a check, you might get roped into a payday loan, which can have an APR of 400% and upward.

That said, some states have caps on the fees that can be charged for cashing a check. For example, in New York, the cap is 2.27% of the total amount of the check, and in California, the fee is capped at 3% (or 3.5% without identification). In Illinois, check-cashing fees at these stores are capped at 50 cents or 1.0% of the check amount, whichever is greater.

Even if your state has caps on check-cashing fees at these stores, it’s a good idea to steer clear of them and their predatory practices. You might enter with the intention of cashing your check and leave with a very expensive payday loan.

How to cash a check without an ID

Not having an ID makes cashing a check even more difficult, but it’s possible. You can cash a check by handing it over to someone else who can cash it on your behalf. As a last resort, you can visit a cash-checking store. But be warned: The fees to cash a check at these stores are usually high, and they may be even higher if you lack identification.

How to cash a business check without a bank account

If you have a business check and don’t have a business bank account, you have a few options. You can get it cashed at a check-cashing retailer, grocery store, or at the issuing bank. While you can also get it cashed at a check-cashing store, that’s to be avoided.

Note that you will almost always need to pay a fee. The fee depends on where you’re cashing your business check and also the check amount.

The AP Buyline roundup

Not having a bank account and trying to cash a check might mean more hurdles and fewer options, but there are ways you can do it. When considering the different choices, look into the steps and fees involved. That will help you keep more of your money and avoid unnecessary expense.

Frequently asked questions (FAQs)

What app will cash a check immediately?

Apps that feature instant cash checking include PayPal, Venmo, and Cash App. Instant cash checking services come with a fee, which can be either a percentage of the amount of the check or a flat fee. The exact fee depends on the app.

Can I cash a check on Cash App?

Yes, you can deposit a check using Cash App’s mobile check capture service, but you’ll need to have a linked bank account. You’ll also need to endorse the check and take a photo of the front and back.

Are there limits to the amount I can cash without a bank account?

If you’re cashing a check at a bank where you aren’t a member, there might be limits for non-customers. Most businesses and third-party vendors will also have limits, which depend on the type of check and the vendor.