Check cashing is one of those fields that a lot of people think they understand but when it really comes right down to it – they don’t really have a strong grasp of what goes on behind the scenes.
The truth of the matter is that check cashing is pretty easy to get your arms around once you understand what it is that check cashers do, what they are faced with and how they handle problems.
Let’s just start off by saying that if you don’t know what a check casher is and why someone would use a check casher – it’s really not that complicated.
A check casher or check cashing is exactly what it sounds like.
It is a business that cashes checks and they will often handle all sorts of different kinds of checks.
That means that they will handle things like payroll checks, tax refund checks, various forms of city/state/government checks and the like.
The one type of check that most check cashers will not deal with however are what are known as personal checks.
Those are checks that a person writes to another person or business out of their personal checking account.
Why Would Someone Use A Check Casher
There are a variety of reasons that check cashing business exist and are so popular.
The primary reason that people use check cashers however is the plain and simple fact that not everyone has a bank account.
When someone doesn’t have a bank account, it can be difficult to turn a check into cash but yet that is exactly what a check cashing business does.
Basically they let an average person who doesn’t have a bank account cash a check and turn it into money that they can use down the road to pay bills or buy the things that they need.
Check cashing businesses make money by charging a percentage of the amount that the check is written for in order to cash the check.
Often times these percentages are regulated by local and state laws but that’s not always the case.
You can expect to pay anywhere between .5% and 5% to cash a check at a check casher depending on the amount the check is written for and what kind of check it is.
Check cashing is a simple process that will involve verifying the check and giving you the cash for it, minus their small fee. The fee they charge is often dependent on the risk associated with the type of check that you are cashing.
Typically speaking, the more risk associated with the check, the higher the fee will be for cashing it. That’s why something like a tax refund check is often very inexpensive to cash – they are almost always good and it’s pretty easy to catch fake tax refund checks meaning that there is little risk to the check casher and they will be happy to turn your tax refund check into cash you can use.
Are Check Cashers Fair
Yes, check cashers are fair and will treat you with the respect you deserve.
You do have to understand however that they have to research and verify your check before they can cash it for you.
It’s nothing personal – they just need to make sure that the check is good and you are the person whom should have the check before they cash it.
It’s like any other business in the sense that there will always be people out there looking for a way to cheat the system or take advantage of something in some way and because check cashing is a business that handles cash, it’s often a target for seamster looking for a quick buck, even if it is illegal for them to commit fraud against the check casher.
But on top of it, often times the fee or percentage that a check cashing business charges you will be fair and in line with the local market for check cashing. On the same token, it is still like any business in the sense that there is competition for your business so most of the local check cashers in your area are going to charge similar and competitive rates and fees.
Check cashing is very safe as long the check is written out to you and you have the proper identification for cashing it.
Is Check Cashing Safe
Yes, check cashing is perfectly safe.
As long as your check is legitimate and there’s no “Funny business” going on, taking a check to a check casher to have them turn it into money for you is completely safe and there won’t be a problem.
Just make sure of course that the check is written out to you and not to someone else and that you have a State ID with you as that is required in most state or by check cashers.
What Is The Check Cashing Process
The check cashing process is really very simple.
You will simply take your check to a check casher along with a state ID. Some states or local laws may require two forms of identification so it’s not a bad idea to call your local check casher ahead of time just to make sure that you have what they require to cash your check.
Once you give the check casher your check and ID they will then verify that the check is good. This process will vary depending on what type of check it is or how much the check is made out for. In some cases it will be a quick and simple process of simply calling the company or person that issued the check, but for larger checks they may have to verify the funds with the bank from which the check was issued.
Once the check has been verified, they will then process the transaction by entering your information into their system along with the information from the check. Sometimes this means making a copy of your ID or at least scanning it so they have a picture of it should they need it for future use.
They they will have you sign the check and hand you the cash for the check, minus their fee or percentage, whatever that may end of being.
And that’s all there is to it – check cashing is really just that simple!
